Bill

Bill > HR5322


US HR5322

Ensuring Diversity in Community Banking Act


summary

Introduced
12/05/2019
In Committee
12/11/2019
Crossed Over
09/22/2020
Passed
Dead
12/31/2020

Introduced Session

116th Congress

Bill Summary

Establishes and revises provisions related to minority depository institutions, community development financial institutions, and impact banks. (Sec. 4) The bill expands the definition of minority depository institutions to include women-owned banks. It also establishes impact banks as depository institutions with total assets less than $10 billion and where a certain total dollar value of loans are extended to low-income borrowers. (Sec. 6) The bill creates Minority Depository Institutions Advisory Committees at the Federal Reserve Board, the Office of the Comptroller of the Currency, the Federal Deposit Insurance Corporation, and the National Credit Union Administration. The committees must provide advice to their respective entities regarding preservation of the number and character of minority-owned institutions and the creation of new institutions. (Sec. 8) The bill establishes the Minority Bank Deposit Program to prioritize the use of minority depository institutions to hold the deposits of federal departments and agencies. (Sec. 10) The bill sets forth the threshold of controlling shares with respect to minority depository institutions and impact banks. It also allows new minority depository institutions and impact banks to take three years to meet initial capital requirements. (Sec. 12) The bill establishes a program allowing minority depository institutions and impact banks to apply to receive deposits from certain Treasury accounts. (Sec. 13) The Federal Deposit Insurance Corporation must evaluate certain applications for deposit insurance for eligibility as a community development financial institution. (Sec. 14) The Small Business Administration must establish a task force on lending to small business concerns by improving relationships with community development financial institutions, minority depository institutions, and impact banks. (Sec. 15) The bill also decreases, beginning September 30, 2030, the cap on the surplus funds of the Federal Reserve banks. (Amounts exceeding this cap are deposited in the general fund of the Treasury.)

AI Summary

This bill establishes and revises provisions related to minority depository institutions, community development financial institutions, and impact banks. It expands the definition of minority depository institutions to include women-owned banks, establishes impact banks as depository institutions with total assets less than $10 billion and a certain level of loans to low-income borrowers, creates Minority Depository Institutions Advisory Committees at various federal agencies, establishes the Minority Bank Deposit Program to prioritize the use of minority depository institutions to hold federal deposits, sets forth thresholds for control of minority depository institutions and impact banks, creates a custodial deposit program for covered minority depository institutions and impact banks, and streamlines the application and reporting processes for community development financial institutions. The bill also establishes a task force to examine ways to improve relationships between the Small Business Administration and community development financial institutions, minority depository institutions, and impact banks, and decreases the cap on the surplus funds of the Federal Reserve banks beginning in 2030.

Committee Categories

Business and Industry, Housing and Urban Affairs

Sponsors (8)

Last Action

Received in the Senate and Read twice and referred to the Committee on Banking, Housing, and Urban Affairs. (on 09/22/2020)

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