Bill > HB2971

This bill amends two Oregon Revised Statutes (ORS) related to financial institutions, primarily focusing on updating definitions and investment guidelines. In ORS 708A.115, the bill replaces the term "stockholders' equity" with "tier 1 capital" when describing investment limitations for financial institutions, allowing them to invest in various government and municipal obligations without restrictions based on their capital structure. In ORS 295.001, the bill provides a more nuanced definition of "net worth" for different types of financial institutions, distinguishing between banks with and without a community bank leverage ratio framework, and credit unions. The updated definition allows for more flexible calculations of an institution's capital based on their specific regulatory framework, which helps ensure that financial institutions are appropriately evaluated for their financial strength and stability. These changes are technical in nature and aim to modernize the language and standards used in evaluating financial institutions' investments and capital requirements, reflecting current banking practices and regulatory approaches.

Business and Industry

https://olis.oregonlegislature.gov/liz/2025R1/Measures/Overview/HB2971