[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[H.R. 3380 Introduced in House (IH)]

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119th CONGRESS
  1st Session
                                H. R. 3380

 To require the Federal financial institutions regulatory agencies to 
  take risk profiles and business models of institutions into account 
        when taking regulatory actions, and for other purposes.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                              May 14, 2025

Mr. Loudermilk introduced the following bill; which was referred to the 
                    Committee on Financial Services

_______________________________________________________________________

                                 A BILL


 
 To require the Federal financial institutions regulatory agencies to 
  take risk profiles and business models of institutions into account 
        when taking regulatory actions, 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 ``Taking Account of Institutions with 
Low Operation Risk Act of 2025'' or the ``TAILOR Act of 2025''.

SEC. 2. TAILORING REGULATION TO BUSINESS MODEL AND RISK.

    (a) Definitions.--In this section--
            (1) the term ``Federal financial institutions regulatory 
        agency'' means the Office of the Comptroller of the Currency, 
        the Board of Governors of the Federal Reserve System, the 
        Federal Deposit Insurance Corporation, the National Credit 
        Union Administration, and the Bureau of Consumer Financial 
        Protection; and
            (2) the term ``regulatory action''--
                    (A) means any proposed, interim, or final rule or 
                regulation; and
                    (B) does not include any action taken by a Federal 
                financial institutions regulatory agency that is solely 
                applicable to an individual institution, including an 
                enforcement action or order.
    (b) Consideration and Tailoring.--For any regulatory action 
occurring after the date of enactment of this Act, each Federal 
financial institutions regulatory agency shall--
            (1) take into consideration the risk profile and business 
        models of each type of institution or class of institutions 
        subject to the regulatory action; and
            (2) tailor the regulatory action applicable to an 
        institution, or type of institution, in a manner that limits 
        the regulatory impact, including cost, human resource 
        allocation, and other burdens, on the institution or type of 
        institution as is appropriate for the risk profile and business 
        model involved.
    (c) Factors To Consider.--In carrying out the requirements of 
subsection (b), each Federal financial institutions regulatory agency 
shall consider--
            (1) the aggregate effect of all applicable regulatory 
        action on the ability of institutions to flexibly serve 
        customers of the institutions and local markets on and after 
        the date of enactment of this Act;
            (2) the potential effect that efforts to implement the 
        regulatory action and third-party service provider actions may 
        work to undercut efforts to tailor the regulatory action 
        described in subsection (b)(2); and
            (3) the statutory provision authorizing the regulatory 
        action, the congressional intent with respect to the statutory 
        provision, and the underlying policy objectives of the 
        regulatory action.
    (d) Notice of Proposed and Final Rulemaking.--Each Federal 
financial institutions regulatory agency shall disclose and document in 
every notice of proposed rulemaking and in any final rulemaking for a 
regulatory action described in subsection (b).
    (e) Reports to Congress.--Not later than 1 year after the date of 
enactment of this Act and annually thereafter, each Federal financial 
institutions regulatory agency shall submit to the Committee on 
Banking, Housing, and Urban Affairs of the Senate and the Committee on 
Financial Services of the House of Representatives a report on the 
specific actions taken to tailor the regulatory actions of the Federal 
financial institutions regulatory agency pursuant to the requirements 
of this section.
    (f) Limited Look-Back Application.--
            (1) In general.--Each Federal financial institutions 
        regulatory agency shall--
                    (A) conduct a review of all final regulations 
                issued pursuant to statutes enacted during the period 
                beginning on the date that is 15 years before the date 
                on which this Act is introduced in the House of 
                Representatives and ending on the date of enactment of 
                this Act; and
                    (B) apply the requirements of this section to the 
                regulations described in subparagraph (A).
            (2) Revision.--Any regulation revised under paragraph (1) 
        shall be revised not later than 3 years after the date of 
        enactment of this Act.

SEC. 3. SHORT-FORM CALL REPORTS FOR ALL BANKS ELIGIBLE FOR THE 
              COMMUNITY BANK LEVERAGE RATIO.

    The appropriate Federal banking agencies, as defined in section 3 
of the Federal Deposit Insurance Act (12 U.S.C. 1813), shall promulgate 
regulations establishing a reduced reporting requirement for all banks 
eligible for the Community Bank Leverage Ratio, as defined in section 
201(a) of the Economic Growth, Regulatory Relief, and Consumer 
Protection Act (12 U.S.C. 5371 note), when making the first and third 
report of condition of a year as required by section 7(a) of the 
Federal Deposit Insurance Act (12 U.S.C. 1817(a)).

SEC. 4. REPORT TO CONGRESS ON MODERNIZATION OF SUPERVISION.

    Not later than 18 months after the date of enactment of this Act, 
the appropriate Federal banking agencies, as defined in section 3 of 
the Federal Deposit Insurance Act (12 U.S.C. 1813), in consultation 
with State bank supervisors, shall submit to the Committee on Banking, 
Housing, and Urban Affairs of the Senate and the Committee on Financial 
Services of the House of Representatives a report on the modernization 
of bank supervision, including the following factors:
            (1) Changing bank business models.
            (2) Examiner workforce and training.
            (3) The structure of supervisory activities within banking 
        agencies.
            (4) Improving bank-supervisor communication and 
        collaboration.
            (5) The use of supervisory technology.
            (6) Supervisory factors uniquely applicable to community 
        banks.
            (7) Changes in statutes necessary to achieve more effective 
        supervision.
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