This bill requires federal banking agencies to give new banks (de novo institutions) a 3-year period before they must fully meet federal capital requirements. The 3-year period starts when the bank becomes an insured depository institution. For holding companies, the clock starts when their depository subsidiary becomes insured.
During that 3-year period, a new bank or its holding company may ask the agency to change an approved business plan. The agency must approve, conditionally approve, or deny the request within 30 days. If the agency does not act in 30 days, the request is treated as approved.
The bill sets a Community Bank Leverage Ratio of 8 percent for rural depository institutions during the 3-year period after they become insured. Agencies may phase in lower leverage-ratio percentages during the first two years of that period. A rural depository institution is defined as one with under $10,000,000,000 in assets and located in a rural area as defined by regulation.
The bill amends the Home Owners' Loan Act to add agricultural loans to the list of loans Federal savings associations may make, and it adjusts related statutory wording.
The federal banking agencies must jointly study why there were few new insured depository institutions in the prior 10 years and identify ways to promote new banks in underserved areas. They must report their findings to Congress within one year of enactment.
The bill uses definitions from section 3 of the Federal Deposit Insurance Act for key terms like "appropriate Federal banking agency" and "insured depository institution."
No publicly available information on costs or budget effects is included in the bill text or metadata.
No publicly available information describing proponents' arguments or statements is included in the bill text or metadata.
No publicly available information describing opponents' arguments or statements is included in the bill text or metadata.