Bill > HR4437

This bill, known as the SMART Act of 2025, aims to reduce regulatory burdens for certain well-managed and well-capitalized financial institutions, specifically insured depository institutions and insured credit unions with $6 billion or less in consolidated assets. For these institutions, the bill introduces provisions for alternating limited-scope examinations after a full-scope, on-site examination, and allows for the combination of safety and soundness, consumer compliance, and information technology/cybersecurity examinations upon request. A "consumer compliance examination" is defined as an assessment of adherence to federal consumer financial laws. The bill also clarifies that "well capitalized" and "well managed" have specific meanings related to an institution's financial standing and recent examination performance. Exceptions to these relief measures apply if an institution is under a formal enforcement proceeding or if control has changed since the last full examination. Furthermore, the bill mandates that examinations for these smaller institutions be led by experienced examiners, minimize the number of examiners and time spent on-site, be scheduled at convenient times, and provide advance notice of examination topics, with federal banking agencies required to report annually on their compliance and examination practices.