IB 

Union Calendar No. 649 

118TH CONGRESS 

2D SESSION H. R. 758 

[Report No. 118–786] 

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 

FEBRUARY 2, 2023 

Mr. BARR introduced the following bill; which was referred to the Committee 

on Financial Services 

DECEMBER 3, 2024 

Additional sponsors: Mr. SESSIONS, Mr. LOUDERMILK, Mr. DONALDS, Mr. 

LUETKEMEYER, Mrs. KIM of California, Mr. FITZPATRICK, Mr. 

KUSTOFF, Mr. GUEST, Mr. TIMMONS, Mr. VALADAO, Mr. ROSE, Mr. 

WILLIAMS of Texas, Mr. RESCHENTHALER, Mr. EZELL, Mr. POSEY, Ms. 

DE LA CRUZ, and Mrs. HOUCHIN

DECEMBER 3, 2024 

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 February 2, 2023] 


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•HR 758 RH

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. 


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•HR 758 RH

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 

3 SECTION 1. SHORT TITLE. 

4 This Act may be cited as the ‘‘Promoting Access to 

5 Capital in Underbanked Communities Act of 2023’’. 

6 SEC. 2. PHASE-IN OF CAPITAL STANDARDS. 

7 The Federal banking agencies shall issue rules that 

8 provide for a 3-year phase-in period for a depository insti9 tution or depository institution holding company to meet 

10 any Federal capital requirements that would otherwise be 

11 applicable to the depository institution or depository insti12 tution holding company, beginning on— 

13 (1) the date on which the depository institution 

14 became an insured depository institution; or 

15 (2) in the case of a depository institution hold16 ing company, the date on which the depository insti17 tution subsidiary of the depository institution holding 

18 company became an insured depository institution. 

19 SEC. 3. CHANGES TO BUSINESS PLANS. 

20 (a) IN GENERAL.—During the 3-year period beginning 

21 on the date on which a depository institution became an 

22 insured depository institution, the insured depository insti23 tution or its depository institution holding company may 

24 request to deviate from a business plan that has been apVerDate Sep 11 2014 01:00 Dec 04, 2024 Jkt 059200 PO 00000 Frm 00003 Fmt 6652 Sfmt 6203 E:\BILLS\H758.RH H758

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1 proved by the appropriate Federal banking agency by sub2 mitting a request to such agency pursuant to this section. 

3 (b) REVIEW OF CHANGES.—An appropriate Federal 

4 banking agency shall, not later than the end of the 30-day 

5 period beginning on the receipt of a request under sub6 section (a)— 

7 (1) approve, conditionally approve, or deny such 

8 request; and 

9 (2) notify the applicant of such decision and, if 

10 the agency denies the request— 

11 (A) provide the applicant with the reason 

12 for such denial; and 

13 (B) suggest changes to the request that, if 

14 adopted, would allow the agency to approve such 

15 request. 

16 (c) RESULT OF FAILURE TO ACT.—If an appropriate 

17 Federal banking agency fails to approve or deny a request 

18 within the 30-day period required under subsection (b), 

19 such request shall be deemed to be approved. 

20 SEC. 4. RURAL COMMUNITY DEPOSITORY INSTITUTION LE21 VERAGE RATIO. 

22 (a) IN GENERAL.—During the 3-year period beginning 

23 on the date on which a rural depository institution became 

24 an insured depository institution, the Community Bank 


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1 Leverage Ratio for the rural community bank shall be 8 

2 percent. 

3 (b) PHASE-IN AUTHORITY.—The Federal banking 

4 agencies shall issue rules to phase-in the Community Bank 

5 Leverage Ratio described under subsection (a) with respect 

6 to a rural depository institution by setting lower Commu7 nity Bank Leverage Ratio percentages during the first 2 

8 years of the 3-year period described under subsection (a). 

9 (c) DEFINITIONS.—In this section: 

10 (1) COMMUNITY BANK LEVERAGE RATIO.—The 

11 term ‘‘Community Bank Leverage Ratio’’ has the 

12 meaning given that term under section 201(a) of the 

13 Economic Growth, Regulatory Relief, and Consumer 

14 Protection Act (12 U.S.C. 5371 note). 

15 (2) RURAL DEPOSITORY INSTITUTION.—The term 

16 ‘‘rural depository institution’’ means a depository in17 stitution— 

18 (A) with total consolidated assets of less 

19 than $10,000,000,000; and 

20 (B) located in a rural area, as defined 

21 under section 1026.35(b)(iv)(A) of title 12, Code 

22 of Federal Regulations. 


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1 SEC. 5. AGRICULTURAL LOAN AUTHORITY FOR FEDERAL 

2 SAVINGS ASSOCIATIONS. 

3 Section 5(c) of the Home Owners’ Loan Act (12 U.S.C. 

4 1464(c)) is amended— 

5 (1) in paragraph (1), by adding at the end the 

6 following: 

7 ‘‘(V) AGRICULTURAL LOANS.—Secured or 

8 unsecured loans for agricultural purposes.’’; and 

9 (2) in paragraph (2)(A), by striking ‘‘business, 

10 or agricultural’’ and inserting ‘‘or business’’. 

11 SEC. 6. STUDY ON DE NOVO INSURED DEPOSITORY INSTI12 TUTIONS. 

13 (a) STUDY.—The Federal banking agencies shall, 

14 jointly, carry out a study on— 

15 (1) the principal causes for the low number of de 

16 novo insured depository institutions in the 10-year 

17 period ending on the date of enactment of this Act; 

18 and 

19 (2) ways to promote more de novo insured depos20 itory institutions in areas currently underserved by 

21 insured depository institutions. 

22 (b) REPORT TO CONGRESS.—Not later than the end 

23 of the 1-year period beginning on the date of enactment of 

24 this Act, the Federal banking agencies shall, jointly, issue 

25 a report to Congress containing all findings and determinaVerDate Sep 11 2014 01:00 Dec 04, 2024 Jkt 059200 PO 00000 Frm 00006 Fmt 6652 Sfmt 6203 E:\BILLS\H758.RH H758

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1 tions made in carrying out the study required under sub2 section (a). 

3 SEC. 7. DEFINITIONS. 

4 In this Act, the terms ‘‘appropriate Federal banking 

5 agency’’, ‘‘depository institution’’, ‘‘depository institution 

6 holding company’’, ‘‘Federal banking agency’’, and ‘‘in7 sured depository institution’’ have the meaning given those 

8 terms, respectively, under section 3 of the Federal Deposit 

9 Insurance Act. 


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Union Calendar No. 649 

118TH CONGRESS 

2D SESSION H. R. 758 

[Report No. 118–786] 

A BILL 

To require the appropriate Federal banking agenrural community banks, and for other purposes. capital standards, to provide relief for de novo novo financial institutions to comply with Federal cies to establish a 3-year phase-in period for de 

DECEMBER 3, 2024 

Reported with an amendment, committed to the Comand ordered to be printed mittee of the Whole House on the State of the Union, 


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