Bill > HR478

This bill aims to support the formation and growth of new banks by introducing several key provisions. First, it establishes a 3-year phase-in period for new depository institutions (banks) to gradually meet federal capital requirements, providing them with flexibility during their initial years of operation. The bill also allows new banks to request changes to their initially approved business plans, with federal banking agencies required to respond within 30 days, and if they fail to do so, the requested changes are automatically approved. For rural community banks with less than $10 billion in assets, the bill offers additional relief by setting a lower Community Bank Leverage Ratio (a measure of a bank's financial strength) at 8 percent during their first three years, with the option to phase in even lower ratios during the first two years. The legislation also expands the lending authority of federal savings associations to include agricultural loans and mandates a study by federal banking agencies to understand the low number of new bank formations and explore ways to promote new banks in underserved areas. These provisions are designed to reduce regulatory barriers and encourage the establishment of new financial institutions, particularly in rural and underserved communities.

Business and Industry

https://www.congress.gov/bill/119th-congress/house-bill/478/all-info