[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[H.R. 478 Reported in House (RH)]
<DOC>
Union Calendar No. 64
119th CONGRESS
1st Session
H. R. 478
[Report No. 119-90]
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.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
January 16, 2025
Mr. Barr introduced the following bill; which was referred to the
Committee on Financial Services
May 6, 2025
Additional sponsors: Mr. Meuser, Mr. Downing, Mr. Loudermilk, Ms. De La
Cruz, Mr. Cline, Mr. Ellzey, Mr. Scott Franklin of Florida, Mr.
Huizenga, Mr. Knott, Mr. Timmons, Mr. Dunn of Florida, Mr. Williams of
Texas, Mr. Flood, Mr. Palmer, Mr. Donalds, Mr. Rose, Mr. McDowell, Mr.
Alford, Mr. Schmidt, Mr. Fitzgerald, Mr. Shreve, Mr. Moore of North
Carolina, Mr. Lawler, and Mr. Sessions
May 6, 2025
Reported with an amendment, committed to the Committee of the Whole
House on the State of the Union, and ordered to be printed
[Strike out all after the enacting clause and insert the part printed
in italic]
[For text of introduced bill, see copy of bill as introduced on January
16, 2025]
_______________________________________________________________________
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 New Bank Formation Act''.
SEC. 2. PHASE-IN OF CAPITAL STANDARDS.
The Federal banking agencies shall issue rules that provide for a
3-year phase-in period for a depository institution or depository
institution holding company to meet any Federal capital requirements
that would otherwise be applicable to the depository institution or
depository institution holding company, beginning on--
(1) the date on which the depository institution became an
insured depository institution; or
(2) in the case of a depository institution holding
company, the date on which the depository institution
subsidiary of the depository institution holding company became
an insured depository institution.
SEC. 3. CHANGES TO BUSINESS PLANS.
(a) In General.--During the 3-year period beginning on the date on
which a depository institution became an insured depository
institution, the insured depository institution or its depository
institution holding company 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.--The 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 applicant of such decision and, if the
agency denies the request--
(A) provide the applicant 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. 4. RURAL COMMUNITY DEPOSITORY INSTITUTION LEVERAGE RATIO.
(a) In General.--During the 3-year period beginning on the date on
which a rural depository institution became an insured depository
institution, 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 depository institution 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) Rural depository institution.--The term ``rural
depository institution'' means a depository 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. 5. 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. 6. STUDY ON DE NOVO INSURED DEPOSITORY INSTITUTIONS.
(a) Study.--The Federal banking agencies shall, jointly, carry out
a study on--
(1) the principal causes for the low number of de novo
insured depository institutions in the 10-year period ending on
the date of enactment of this Act; and
(2) ways to promote more de novo insured depository
institutions in areas currently underserved by insured
depository 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 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. 7. DEFINITIONS.
In this Act, the terms ``appropriate Federal banking agency'',
``depository institution'', ``depository institution holding company'',
``Federal banking agency'', and ``insured depository institution'' have
the meaning given those terms, respectively, under section 3 of the
Federal Deposit Insurance Act.
Union Calendar No. 64
119th CONGRESS
1st Session
H. R. 478
[Report No. 119-90]
_______________________________________________________________________
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.
_______________________________________________________________________
May 6, 2025
Reported with an amendment, committed to the Committee of the Whole
House on the State of the Union, and ordered to be printed