[Congressional Bills 118th Congress]
[From the U.S. Government Publishing Office]
[H.R. 758 Introduced in House (IH)]
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118th CONGRESS
1st Session
H. R. 758
To require the appropriate Federal banking agencies to establish a 3-
year phase-in period for de novo financial institutions to comply with
Federal capital standards, to provide relief for de novo rural
community banks, and for other purposes.
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IN THE HOUSE OF REPRESENTATIVES
February 2, 2023
Mr. Barr introduced the following bill; which was referred to the
Committee on Financial Services
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A BILL
To require the appropriate Federal banking agencies to establish a 3-
year phase-in period for de novo financial institutions to comply with
Federal capital standards, to provide relief for de novo rural
community banks, and for other purposes.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Promoting Access to Capital in
Underbanked Communities Act of 2023''.
SEC. 2. FINDINGS.
The Congress finds the following:
(1) Trends in bank closures and consolidation have left
many communities without access to banking services and
disproportionately impact underserved rural and urban
communities.
(2) De novo bank formation has slowed significantly
following the financial crisis.
(3) A November 2019 report by the Federal Reserve System
found that 44 counties in the U.S. were ``deeply affected'' by
trends in bank closures and consolidation (i.e., had fewer than
10 branches in 2012 and lost at least 50 percent of them by
2017).
(4) 89 percent of the deeply affected counties were rural.
(5) Rural counties deeply affected by branch closures had
higher poverty rates, lower median income, and a higher share
of their population were African American compared to all rural
communities.
SEC. 3. PHASE-IN OF CAPITAL STANDARDS.
The appropriate Federal banking agencies shall issue rules that
provide for a 3-year phase-in period for a financial institution to
meet any Federal capital requirements that would otherwise be
applicable to the financial institution, where such 3-year period
begins on the date on which the deposit insurance that the financial
institution has obtained from the Federal Deposit Insurance Corporation
becomes effective.
SEC. 4. CHANGES TO BUSINESS PLANS.
(a) In General.--During the 3-year period beginning on the date on
which the deposit insurance that the financial institution has obtained
from the Federal Deposit Insurance Corporation becomes effective, a
financial institution may request to deviate from a business plan that
has been approved by the appropriate Federal banking agency by
submitting a request to such agency pursuant to this section.
(b) Review of Changes.--An appropriate Federal banking agency
shall, not later than the end of the 30-day period beginning on the
receipt of a request under subsection (a)--
(1) approve, conditionally approve, or deny such request;
and
(2) notify the financial institution of such decision and,
if the agency denies the request--
(A) provide the financial institution with the
reason for such denial; and
(B) suggest changes to the request that, if
adopted, would allow the agency to approve such
request.
(c) Result of Failure To Act.--If an appropriate Federal banking
agency fails to approve or deny a request within the 30-day period
required under subsection (b), such request shall be deemed to be
approved.
SEC. 5. RURAL COMMUNITY BANK LEVERAGE RATIO.
(a) In General.--During the 3-year period beginning on the date on
which the deposit insurance that a rural community bank has obtained
from the Federal Deposit Insurance Corporation becomes effective, the
Community Bank Leverage Ratio for the rural community bank shall be 8
percent.
(b) Phase-In Authority.--The Federal banking agencies shall issue
rules to phase-in the Community Bank Leverage Ratio described under
subsection (a) with respect to a rural community bank by setting lower
Community Bank Leverage Ratio percentages during the first 2 years of
the 3-year period described under subsection (a).
(c) Definitions.--In this section:
(1) Community bank leverage ratio.--The term ``Community
Bank Leverage Ratio'' has the meaning given that term under
section 201(a) of the Economic Growth, Regulatory Relief, and
Consumer Protection Act (12 U.S.C. 5371 note).
(2) Federal banking agency.--The term ``Federal banking
agency'' has the meaning given that term under section 3 of the
Federal Deposit Insurance Act (12 U.S.C. 1813).
(3) Rural community bank.--The term ``rural community
bank'' means a financial institution--
(A) with total consolidated assets of less than
$10,000,000,000; and
(B) located in a rural area, as defined under
section 1026.35(b)(iv)(A) of title 12, Code of Federal
Regulations.
SEC. 6. AGRICULTURAL LOAN AUTHORITY FOR FEDERAL SAVINGS ASSOCIATIONS.
Section 5(c) of the Home Owners' Loan Act (12 U.S.C. 1464(c)) is
amended--
(1) in paragraph (1), by adding at the end the following:
``(V) Agricultural loans.--Secured or unsecured
loans for agricultural purposes.''; and
(2) in paragraph (2)(A), by striking ``business, or
agricultural'' and inserting ``or business''.
SEC. 7. STUDY ON DE NOVO FINANCIAL INSTITUTION.
(a) Study.--The appropriate Federal banking agencies shall,
jointly, carry out a study on--
(1) the principal causes for the low number of de novo
financial institutions in the 10-year period ending on the date
of enactment of this Act; and
(2) ways to promote more de novo financial institutions in
areas currently underserved by financial institutions.
(b) Report to Congress.--Not later than the end of the 1-year
period beginning on the date of enactment of this Act, the appropriate
Federal banking agencies shall, jointly, issue a report to Congress
containing all findings and determinations made in carrying out the
study required under subsection (a).
SEC. 8. DEFINITIONS.
In this Act:
(1) Financial institution.--The term ``financial
institution'' means a depository institution or depository
institution holding company.
(2) Other banking terms.--The terms ``appropriate Federal
banking agency'', ``depository institution'', and ``depository
institution holding company'' have the meaning given those
terms, respectively, under section 3 of the Federal Deposit
Insurance Act.
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