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[Congressional Bills 118th Congress]
[From the U.S. Government Publishing Office]
[H.R. 8337 Reported in House (RH)]

<DOC>

                                                 Union Calendar No. 651
118th CONGRESS
  2d Session
                                H. R. 8337

                          [Report No. 118-788]

 To amend the Federal banking laws to improve the safety and soundness 
      of the United States banking system, and for other purposes.

_______________________________________________________________________

                    IN THE HOUSE OF REPRESENTATIVES

                              May 10, 2024

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

                            December 3, 2024

                   Additional sponsor: Mr. Fitzgerald

                            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 May 10, 
                                 2024]

_______________________________________________________________________

                                 A BILL

 
 To amend the Federal banking laws to improve the safety and soundness 
      of the United States banking system, 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; TABLE OF CONTENTS.

    (a) Short Title.--This Act may be cited as the ``Bank Resilience 
and Regulatory Improvement Act''.
    (b) Table of Contents.--The table of contents for this Act is as 
follows:

Sec. 1. Short title; table of contents.

    TITLE I--FINANCIAL INSTITUTION REGULATORY TAILORING ENHANCEMENT

Sec. 101. Increased asset thresholds.

                   TITLE II--BANK FAILURE PREVENTION

Sec. 201. Complete record on an application.

       TITLE III--STRESS TESTING ACCOUNTABILITY AND TRANSPARENCY

Sec. 301. Rulemaking related to stress capital buffer requirements.
Sec. 302. Rulemaking relating to stress testing.
Sec. 303. GAO report.

             TITLE IV--BANK SUPERVISION APPEALS IMPROVEMENT

Sec. 401. Timeliness of examinations and required permission, 
                            regulatory, and reporting guidance.
Sec. 402. Update of independent intra-agency appellate process for 
                            reviewing material supervisory 
                            determinations.
Sec. 403. Review of resolution actions resulting in a material loss.

             TITLE V--REVIEW OF DISCOUNT WINDOW OPERATIONS

Sec. 501. Review of discount window operations.

              TITLE VI--SMALL BANK HOLDING COMPANY RELIEF

Sec. 601. Changes required to the Small Bank Holding Company and 
                            Savings and Loan Holding Company Policy 
                            Statement.

    TITLE I--FINANCIAL INSTITUTION REGULATORY TAILORING ENHANCEMENT

SEC. 101. INCREASED ASSET THRESHOLDS.

    (a) Bureau Supervision.--Section 1025(a) of the Consumer Financial 
Protection Act of 2010 (12 U.S.C. 5515) is amended by striking 
``$10,000,000,000'' each place it occurs and inserting 
``$50,000,000,000''.
    (b) Durbin Amendment Requirements.--Section 921(a)(6) of the 
Electronic Fund Transfer Act (15 U.S.C. 1693o-2(a)(6)) is amended by 
striking ``$10,000,000,000'' and inserting ``$50,000,000,000''.
    (c) Volker Rule Requirements.--Section 13(h)(1)(B)(i) of the Bank 
Holding Company Act of 1956 (12 U.S.C. 1851(h)(1)(B)(i)) is amended by 
striking ``$10,000,000,000'' and inserting ``$50,000,000,000''.
    (d) Qualified Mortgage Requirements.--Section 129C(b)(F)(i) of the 
Truth in Lending Act (15 U.S.C. 1639c(b)(F)(i)) is amended by striking 
``$10,000,000,000'' and inserting ``$50,000,000,000''.
    (e) Leverage and Risk-Based Capital Requirements.--Section 
201(a)(3)(A) of the Economic Growth, Regulatory Relief, and Consumer 
Protection Act (12 U.S.C. 5371 note (a)(3)(A)) is amended by striking 
``$10,000,000,000'' and inserting ``$50,000,000,000''.

                   TITLE II--BANK FAILURE PREVENTION

SEC. 201. COMPLETE RECORD ON AN APPLICATION.

    (a) Bank Holding Companies.--Section 3(b)(1) of the Bank Holding 
Company Act of 1956 (12 U.S.C. 1842(b)(1)) is amended--
            (1) by striking ``Upon receiving'' and inserting the 
        following:
            ``(A) In general.--Upon receiving'';
            (2) by striking ``required'' and inserting ``acquired'';
            (3) by striking ``In the event of the failure of the Board 
        to act on any application for approval under this section 
        within the ninety-one-day period which begins on the date of 
        submission to the Board of the complete record on that 
        application, the application shall be deemed to have been 
        granted.''; and
            (4) by adding at the end the following:
            ``(B) Complete record on an application.--
                    ``(i) Notice to applicant.--Not later than 30 days 
                after the date on which the Board receives an 
                application for approval under this section, the Board 
                shall transmit to the applicant a letter that either--
                            ``(I) confirms the record on the 
                        application is complete; or
                            ``(II) details all additional information 
                        that is required for the record on that 
                        application to be complete.
                    ``(ii) Extension of notice.--Notwithstanding clause 
                (i), the Board may, if an application is complex, 
                extend the 30-day period described under clause (i) for 
                an additional 30 days.
                    ``(iii) Receipt of response; deeming of complete 
                record.--Upon receipt of a response from an applicant 
                to a notice requesting additional information described 
                under clause (i)(II), the record on the application 
                shall be deemed complete unless the Board--
                            ``(I) determines that the applicant's 
                        response was materially deficient; and
                            ``(II) not later than 30 days after the 
                        date on which the Board received the response, 
                        provides the applicant a detailed notice 
                        describing the deficiencies.
                    ``(iv) Treatment of third-party information.--In 
                determining whether the record on an application is 
                complete, the Board may take into account only 
                information provided by the applicant, and may not base 
                the determination of completeness on any information 
                (including reports, views, or recommendations) provided 
                by third parties.
            ``(C) Deadline for determination.--
                    ``(i) In general.--Notwithstanding subparagraphs 
                (A) and (B), the Board shall grant or deny an 
                application submitted under this section not later than 
                90 days after the date on which the application was 
                initially submitted to the Board, regardless of whether 
                the record on such initial application was complete.
                    ``(ii) Failure to make a determination.--If the 
                Board does not grant or deny an application within the 
                time period described under clause (i), such 
                application shall be deemed to have been granted.
                    ``(iii) Tolling of period.--The Board may at any 
                time extend the deadline described under clause (i) at 
                the request of the applicant, but may not extend the 
                deadline more than 30 days past the deadline described 
                under clause (i).''.
    (b) Savings and Loan Holding Companies.--Section 10(e) of the Home 
Owners' Loan Act (12 U.S.C. 1467a(e)) is amended--
            (1) in paragraph (2), by striking ``, and shall render a 
        decision within 90 days after submission to the Board of the 
        complete record on the application'';
            (2) by redesignating paragraph (7) as paragraph (9); and
            (3) by inserting after paragraph (6) the following:
            ``(7) Complete record on an application.--
                    ``(A) Notice to applicant.--Not later than 30 days 
                after the date on which the Board receives an 
                application for approval under this subsection, the 
                Board shall transmit to the applicant a letter that 
                either--
                            ``(i) confirms the record on the 
                        application is complete; or
                            ``(ii) details all additional information 
                        that is required for the record on that 
                        application to be complete.
                    ``(B) Extension of notice.--Notwithstanding 
                subparagraph (A), the Board may, if an application is 
                complex, extend the 30-day period described under 
                subparagraph (A) for an additional 30 days.
                    ``(C) Receipt of response; deeming of complete 
                record.--Upon receipt of a response from an applicant 
                to a notice requesting additional information described 
                under subparagraph (A)(ii), the record on the 
                application shall be deemed complete unless the Board--
                            ``(i) determines that the applicant's 
                        response was materially deficient; and
                            ``(ii) not later than 30 days after the 
                        date on which the Board received the response, 
                        provides the applicant a detailed notice 
                        describing the deficiencies.
                    ``(D) Treatment of third-party information.--In 
                determining whether the record on an application is 
                complete, the Board may take into account only 
                information provided by the applicant, and may not base 
                the determination of completeness on any information 
                (including reports, views, or recommendations) provided 
                by third parties.
            ``(8) Deadline for determination.--
                    ``(A) In general.--Notwithstanding any other 
                provision of this subsection, the Board shall grant or 
                deny an application submitted under this subsection not 
                later than 90 days after the date on which the 
                application was initially submitted to the Board, 
                regardless of whether the record on such initial 
                application was complete.
                    ``(B) Failure to make a determination.--If the 
                Board does not grant or deny an application within the 
                time period described under subparagraph (A), such 
                application shall be deemed to have been granted.
                    ``(C) Tolling of period.--The Board may at any time 
                extend the deadline described under subparagraph (A) at 
                the request of the applicant, but may not extend the 
                deadline more than 30 days past the deadline described 
                under subparagraph (A).''.
    (c) Insured Depository Institutions.--Section 18(c) of the Federal 
Deposit Insurance Act (12 U.S.C. 1828(c)) is amended by adding at the 
end the following:
    ``(14) Complete Record on an Application.--
            ``(A) Notice to applicant.--Not later than 30 days after 
        the date on which the responsible agency receives a merger 
        application for approval under this subsection, the responsible 
        agency shall transmit to the applicant a letter that either--
                    ``(i) confirms the record on the application is 
                complete; or
                    ``(ii) details all additional information that is 
                required for the record on that application to be 
                complete.
            ``(B) Extension of notice.--Notwithstanding subparagraph 
        (A), the responsible agency may, if an application is unusually 
        complex, extend the 30-day period described under subparagraph 
        (A) for an additional 30 days.
            ``(C) Receipt of response; deeming of complete record.--
        Upon receipt of a response from an applicant to a notice 
        requesting additional information described under subparagraph 
        (A)(ii), the record on the application shall be deemed complete 
        unless the responsible agency--
                    ``(i) determines that the applicant's response was 
                materially deficient; and
                    ``(ii) not later than 30 days after the date on 
                which the responsible agency received the response, 
                provides the applicant a detailed notice describing the 
                deficiencies.
            ``(D) Treatment of third-party information.--In determining 
        whether the record on an application is complete, the 
        responsible agency may take into account only information 
        provided by the applicant, and may not base the determination 
        of completeness on any information (including reports, views, 
        or recommendations) provided by third parties.
    ``(15) Deadline for Determination.--
            ``(A) In general.--Notwithstanding any other provision of 
        this subsection, the responsible agency shall grant or deny a 
        merger application submitted under this subsection not later 
        than 90 days after the date on which the application was 
        initially submitted to the responsible agency, regardless of 
        whether the record on such initial application was complete.
            ``(B) Failure to make a determination.--If the responsible 
        agency does not grant or deny an application within the time 
        period described under subparagraph (A), such application shall 
        be deemed to have been granted.
            ``(C) Tolling of period.--The responsible agency may at any 
        time extend the deadline described under subparagraph (A) at 
        the request of the applicant, but may not extend the deadline 
        more than 30 days past the deadline described under 
        subparagraph (A).''.

       TITLE III--STRESS TESTING ACCOUNTABILITY AND TRANSPARENCY

SEC. 301. RULEMAKING RELATED TO STRESS CAPITAL BUFFER REQUIREMENTS.

    (a) In General.--Not later than 90 days after the date of the 
enactment of this section, the Board of Governors of the Federal 
Reserve System (in this title referred to as the ``Board'') shall issue 
a rule to establish any models, assumptions, formulas, or other 
decisional methodologies that are used to determine any component or 
subcomponent of the stress capital buffer requirement for a bank 
holding company.
    (b) Changes.--The Board may only make changes to the rule issued 
under subsection (a) through notice and comment rulemaking.
    (c) Stress Capital Buffer Requirement Defined.--The term ``stress 
capital buffer requirement'' has the meaning given the term in section 
225.8(c) of title 12 of the Code of Federal Regulations.

SEC. 302. RULEMAKING RELATING TO STRESS TESTING.

    (a) In General.--Beginning in the first calendar year beginning 
after the date of the enactment of this section, the Board shall, not 
less than 30 days before conducting a stress test pursuant to section 
165(i) of the Financial Stability Act of 2010, issue a rule to 
establish each scenario to be used in such stress test.
    (b) Prohibition.--The Board may not, by rule or otherwise, subject 
any nonbank financial company to a climate-related stress test using 
the authority provided in section 165(i) of the Financial Stability Act 
of 2010.

SEC. 303. GAO REPORT.

    (a) In General.--The Comptroller General of the United States 
shall, every 3 years, conduct a study and submit a report to the 
Congress with respect to the stress tests conducted by the Board under 
section 165(i) of the Financial Stability Act of 2010 in the 3 most 
recent calendar years.
    (b) Contents.--The report submitted to the Congress under 
subsection (a) shall consider the effectiveness of the stress tests in 
evaluating--
            (1) the safety and soundness of the nonbank financial 
        institutions subjected to stress tests;
            (2) the stability of the United States financial system.

             TITLE IV--BANK SUPERVISION APPEALS IMPROVEMENT

SEC. 401. TIMELINESS OF EXAMINATIONS AND REQUIRED PERMISSION, 
              REGULATORY, AND REPORTING GUIDANCE.

    (a) Exit Interview Requirement; Timeliness of Examinations.--
            (1) Insured depository institutions.--Section 10(d) of the 
        Federal Deposit Insurance Act (12 U.S.C. 1820(d)) is amended by 
        adding at the end the following:
            ``(11) Examination timeliness.--The appropriate Federal 
        banking agency shall complete any examination of an insured 
        depository institution within 270 days of commencing the 
        examination, except that such period may be extended by the 
        appropriate Federal banking agency by providing written notice 
        to the insured depository institution describing with 
        particularity the reasons that a longer period is needed.
            ``(12) Exit interview requirement.--Within 30 days of 
        completing an examination, the appropriate Federal banking 
        agency shall conduct an exit interview with the insured 
        depository institution's senior management and board of 
        directors.
            ``(13) Timeliness of examination reports.--
                    ``(A) Final examination report.--With respect to an 
                examination of an insured depository institution by an 
                appropriate Federal banking agency, the appropriate 
                Federal banking agency shall provide a final 
                examination report to the insured depository 
                institution not later than 60 days after the later of--
                            ``(i) the exit interview for the 
                        examination; or
                            ``(ii) the provision of additional 
                        information by the insured depository 
                        institution relating to the examination.
                    ``(B) Examination materials.--Upon the request of 
                an insured depository institution, the appropriate 
                Federal banking agency shall include with a final 
                examination report an appendix listing all materials 
                relied upon by the agency in support of all material 
                supervisory determinations.
                    ``(C) Material supervisory determination defined.--
                In this paragraph, the term `material supervisory 
                determination' has the meaning given such term in 
                section 309(i) of the Riegle Community Development and 
                Regulatory Improvement Act of 1994.''.
            (2) Insured credit unions.--Section 204 of the Federal 
        Credit Union Act (12 U.S.C. 1784) is amended by adding at the 
        end the following:
    ``(h) Exit Interview Requirement; Timeliness of Examinations.--
            ``(1) Examination timeliness.--The Board shall complete any 
        examination of an insured credit union within 270 days of 
        commencing the examination, except that such period may be 
        extended by the Board by providing written notice to the 
        insured credit union describing with particularity the reasons 
        that a longer period is needed.
            ``(2) Exit interview requirement.--Within 30 days of 
        completing an examination, the Board shall conduct an exit 
        interview with the insured credit union's senior management and 
        board of directors.
            ``(3) Timeliness of examination reports.--
                    ``(A) Final examination report.--With respect to an 
                examination of an insured credit union, the Board shall 
                provide a final examination report to the insured 
                credit union not later than 60 days after the later 
                of--
                            ``(i) the exit interview for the 
                        examination; or
                            ``(ii) the provision of additional 
                        information by the insured credit union 
                        relating to the examination.
                    ``(B) Examination materials.--Upon the request of 
                an insured credit union, the Board shall include with a 
                final examination report an appendix listing all 
                materials relied upon by the Board in support of all 
                material supervisory determinations.
                    ``(C) Material supervisory determination defined.--
                In this paragraph, the term `material supervisory 
                determination' has the meaning given such term in 
                section 309(i) of the Riegle Community Development and 
                Regulatory Improvement Act of 1994.''.
    (b) Timeliness of Required Permission, Regulatory, and Reporting 
Guidance.--
            (1) Insured depository institutions.--Section 10 of the 
        Federal Deposit Insurance Act (12 U.S.C. 1820) is amended by 
        adding at the end the following:
    ``(l) Timeliness of Required Permission, Regulatory, and Reporting 
Guidance.--
            ``(1) Request for permission or guidance.--An insured 
        depository institution may request a written determination by 
        the appropriate Federal banking agency of--
                    ``(A) the agency's permission to take a particular 
                action;
                    ``(B) the agency's interpretation of a law or 
                regulation; and
                    ``(C) the agency's interpretation of generally 
                accepted accounting principles or accounting 
                objectives, standards, and requirements under section 
                37.
            ``(2) Contents of request.--A request made under paragraph 
        (1) shall be in writing and contain--
                    ``(A) the nature of the request;
                    ``(B) applicable facts relating to the matter;
                    ``(C) applicable law, regulation, or generally 
                accepted accounting principles relating to the matter; 
                and
                    ``(D) a summary of the request.
            ``(3) Response to request.--A Federal banking agency 
        receiving a request under paragraph (1) shall, not later than 
        30 days after receiving the request--
                    ``(A) provide the insured depository institution 
                making the request with written notification that the 
                agency received the request and stating whether the 
                request contains the information required under 
                paragraph (2); and
                    ``(B) if the request does not contain the 
                information required under paragraph (2), provide the 
                insured depository institution with an explanation of 
                what information is missing.
            ``(4) Providing missing information.--If a Federal banking 
        agency informs the insured depository institution under 
        paragraph (3) that the request does not contain all the 
        information required under paragraph (2), the insured 
        depository institution may provide the missing information to 
        the Federal banking agency during the 30-day period beginning 
        on the date the insured depository institution receives the 
        explanation of the missing information under paragraph (3).
            ``(5) Determination.--A Federal banking agency receiving a 
        request under paragraph (1) shall make a determination on the 
        request and provide the insured depository institution with a 
        written notice of such determination--
                    ``(A) if the initial request contains the 
                information required under paragraph (2), not later 
                than the end of the 60-day period beginning on the date 
                the Federal banking agency notifies the insured 
                depository institution of the receipt of the request 
                under paragraph (3); or
                    ``(B) if the initial request does not contain the 
                information required under paragraph (2)--
                            ``(i) not later than the end of the 60-day 
                        period beginning on the date that the insured 
                        depository institution provides the Federal 
                        banking agency with the missing information 
                        under paragraph (4); or
                            ``(ii) if the insured depository 
                        institution does not provide the Federal 
                        banking agency with the missing information 
                        within the 30-day period described under 
                        paragraph (4), not later than the end of the 
                        60-day period beginning on the end of such 30-
                        day period.
            ``(6) Reports and publication.--Each Federal banking agency 
        shall, within 120 days after making a determination under 
        paragraph (5), publish a summary of the determination on the 
        public website of the Federal banking agency. Each Federal 
        banking agency shall redact any confidential supervisory 
        information about the insured depository institution, any 
        identifying facts about the institution, and any sensitive 
        personally identifiable information.''.
            (2) Insured credit unions.--Section 209 of the Federal 
        Credit Union Act (12 U.S.C. 1789) is amended by adding at the 
        end the following:
    ``(c) Timeliness of Required Permission, Regulatory, and Reporting 
Guidance.--
            ``(1) Request for permission or guidance.--An insured 
        credit union may request a written determination by the Board 
        of--
                    ``(A) the Board's permission to take a particular 
                action;
                    ``(B) the Board's interpretation of a law or 
                regulation; and
                    ``(C) the Board's interpretation of generally 
                accepted accounting principles or other accounting 
                objectives, standards, and requirements.
            ``(2) Contents of request.--A request made under paragraph 
        (1) shall be in writing and contain--
                    ``(A) the nature of the request;
                    ``(B) applicable facts relating to the matter;
                    ``(C) applicable law, regulation, or generally 
                accepted accounting principles relating to the matter; 
                and
                    ``(D) a summary of the request.
            ``(3) Response to request.--The Board, upon receiving a 
        request under paragraph (1) shall, not later than 30 days after 
        receiving the request--
                    ``(A) provide the insured credit union making the 
                request with written notification that the Board 
                received the request and stating whether the request 
                contains the information required under paragraph (2); 
                and
                    ``(B) if the request does not contain the 
                information required under paragraph (2), provide the 
                insured credit union with an explanation of what 
                information is missing.
            ``(4) Providing missing information.--If the Board informs 
        the insured credit union under paragraph (3) that the request 
        does not contain all the information required under paragraph 
        (2), the insured credit union may provide the missing 
        information to the Board during the 30-day period beginning on 
        the date the insured credit union receives the explanation of 
        the missing information under paragraph (3).
            ``(5) Determination.--The Board shall make a determination 
        on a request made under paragraph (1) and provide the insured 
        credit union with a written notice of such determination--
                    ``(A) if the initial request contains the 
                information required under paragraph (2), not later 
                than the end of the 60-day period beginning on the date 
                the Board notifies the insured credit union of the 
                receipt of the request under paragraph (3); or
                    ``(B) if the initial request does not contain the 
                information required under paragraph (2)--
                            ``(i) not later than the end of the 60-day 
                        period beginning on the date that the insured 
                        credit union provides the Board with the 
                        missing information under paragraph (4); or
                            ``(ii) if the insured credit union does not 
                        provide the Board with the missing information 
                        within the 30-day period described under 
                        paragraph (4), not later than the end of the 
                        60-day period beginning on the end of such 30-
                        day period.
            ``(6) Reports and publication.--The Board shall, within 120 
        days after making a determination under paragraph (5), publish 
        a summary of the determination on the public website of the 
        Board. The Board shall redact any confidential supervisory 
        information about the insured credit union, any identifying 
        facts about the credit union, and any sensitive personally 
        identifiable information.''.

SEC. 402. UPDATE OF INDEPENDENT INTRA-AGENCY APPELLATE PROCESS FOR 
              REVIEWING MATERIAL SUPERVISORY DETERMINATIONS.

    (a) Update of Independent Intra-Agency Appellate Process.--Not 
later than 180 days after the date of enactment of this Act, the Board 
of Governors of the Federal Reserve System, the Comptroller of the 
Currency, the Federal Deposit Insurance Corporation Board, and the 
National Credit Union Administration Board shall revise the independent 
intra-agency appellate process required under section 309(a) of the 
Riegle Community Development and Regulatory Improvement Act of 1994 (12 
U.S.C. 4806(a)).
    (b) Office of Supervisory Appeals; Appeals Process.--Section 309 of 
the Riegle Community Development and Regulatory Improvement Act of 1994 
(12 U.S.C. 4806) is amended--
            (1) by redesignating subsection (f) as subsection (i); and
            (2) by inserting after subsection (e) the following:
    ``(f) Office of Supervisory Appeals.--The Federal banking agencies 
and the National Credit Union Administration shall each establish an 
Office of Supervisory Appeals to carry out the independent intra-agency 
appellate process required under this section.
    ``(g) Appeals Officials.--
            ``(1) Appointment.--The head of each of the Federal banking 
        agencies and the National Credit Union Administration shall 
        appoint appeals officials, in a number sufficient to fully 
        staff the panels described under subsection (h), from among the 
        following classes of individuals:
                    ``(A) Individuals who have financial institutions 
                regulatory agency experience.
                    ``(B) Individuals who--
                            ``(i) are a licensed attorney or a 
                        certified public accountant authorized to 
                        practice under the laws of a State, the 
                        District of Columbia, or a territory of the 
                        United States;
                            ``(ii) have either academic or private 
                        sector experience;
                            ``(iii) have relevant subject matter 
                        knowledge or work-related experience in the 
                        financial services sector, as determined by the 
                        agency making the appointment; and
                            ``(iv) are not, and were not during the 
                        previous 10-year period, employed by a Federal 
                        banking agency, a Federal reserve bank, or the 
                        National Credit Union Administration.
                    ``(C) Individuals--
                            ``(i) with at least 10 years private sector 
                        financial services senior management-level 
                        experience; and
                            ``(ii) recommended by--
                                    ``(I) an insured depository 
                                institution;
                                    ``(II) an insured credit union; or
                                    ``(III) a trade association for 
                                such institutions or credit unions.
            ``(2) Term.--
                    ``(A) In general.--Each appeals official appointed 
                under paragraph (1) shall serve for a term of 3 years.
                    ``(B) Term limitation.--No individual may be 
                appointed under paragraph (1) to serve more than 2 full 
                terms.
                    ``(C) Dismissal.--An appeals official appointed 
                under paragraph (1) may be removed at any time by the 
                appointing agency.
    ``(h) Appeals Process and Panel Hearing of Material Supervisory 
Determinations.--
            ``(1) Appeal to the head of supervision.--
                    ``(A) In general.--An institution seeking an appeal 
                of a material supervisory determination shall--
                            ``(i) file a written appeal to the head of 
                        supervision for the agency not later than 30 
                        days after receiving the material supervisory 
                        determination from the agency; and
                            ``(ii) include in the appeal--
                                    ``(I) a clear and complete 
                                statement of all relevant facts and 
                                issues;
                                    ``(II) all arguments that the 
                                institution wishes to present; and
                                    ``(III) all relevant and material 
                                documents that the institution wishes 
                                to be considered.
                    ``(B) Extension.--The institution may file a 
                written request with the head of supervision for an 
                extension of the 30-day time period described under 
                subparagraph (A)(i), which shall state good cause for 
                granting the extension. Such request shall be granted 
                in the sole discretion of the head of supervision.
                    ``(C) Information made available to institution.--
                An institution seeking an appeal of a material 
                supervisory determination may, not later than 7 days 
                after receiving the material supervisory determination, 
                request that the agency provide the institution with 
                any information relied upon by the agency in making the 
                material supervisory determination. The agency shall 
                provide that information to the institution not later 
                than 14 days after receiving the request.
            ``(2) Consideration of appeal by the head of supervision.--
                    ``(A) In general.--A head of supervision receiving 
                an appeal under paragraph (1) shall, after reviewing 
                the information provided by the institution in such 
                appeal--
                            ``(i) grant the appeal;
                            ``(ii) refer the appeal to a panel 
                        appointed under paragraph (3) for a 
                        recommendation; or
                            ``(iii) deny the appeal.
                    ``(B) Notification.--A head of supervision shall 
                promptly inform the institution and the head of the 
                agency after granting, referring, or denying an appeal 
                under subparagraph (A).
                    ``(C) Right to appeal denial.--An institution that 
                has an appeal denied by the head of supervision under 
                subparagraph (A) may appeal such denial directly to a 
                panel appointed under paragraph (3).
            ``(3) Appointment of panel.--
                    ``(A) In general.--With respect to each appeal 
                referred by a head of supervision under paragraph 
                (2)(A)(ii) or appealed by an institution after a denial 
                under paragraph (2)(A)(iii), the agency shall appoint a 
                panel of 3 appeals officials to provide a 
                recommendation on such appeal, with 1 of the 3 appeals 
                officials being appointed to the panel from individuals 
                in each of the classes described under subparagraphs 
                (A), (B), and (C) of subsection (g)(1).
                    ``(B) Reporting prohibition.--An appeals official 
                may not be appointed to a panel under subparagraph (A) 
                if the appeals official is reporting, or has reported, 
                directly or indirectly in the past 5 years, to the 
                agency official who made the material supervisory 
                determination under review.
            ``(4) Panel hearings.--
                    ``(A) Request for hearing.--An institution may 
                request a hearing with the panel on the institution's 
                appeal by--
                            ``(i) making such request not later than 7 
                        days after the date on which the institution is 
                        informed that the head of supervision referred 
                        an appeal to a panel under paragraph (2); or
                            ``(ii) including the request in the 
                        institution's appeal of a denial under 
                        paragraph (2).
                    ``(B) Timing of hearing.--If an institution 
                requests a hearing, as described under subparagraph 
                (A), the panel shall provide the institution with a 
                hearing on the institution's appeal not later than 30 
                days after the date the hearing is requested, except 
                the panel may, in the discretion of the panel or upon 
                good cause shown, extend such deadline by up to 15 
                days.
                    ``(C) Rulemaking.--The Federal banking agencies and 
                the National Credit Union Administration shall each 
                issue rules to establish procedures for panel hearings 
                described under this paragraph, including that--
                            ``(i) the institution may appear at the 
                        hearing personally or through counsel;
                            ``(ii) the institution may provide an oral 
                        and written presentation at the hearing;
                            ``(iii) the panel may ask questions of any 
                        person participating in the hearing;
                            ``(iv) the hearing may not involve--
                                    ``(I) taking testimony;
                                    ``(II) a cross-examination; and
                                    ``(III) discovery;
                            ``(v) the hearing shall not be governed by 
                        formal rules of evidence; and
                            ``(vi) the panel shall have a verbatim 
                        transcript of the hearing prepared.
            ``(5) Recommendation by panel.--
                    ``(A) In general.--A panel making a recommendation 
                on an appeal under this subsection shall make the 
                recommendation not later than--
                            ``(i) 90 days after the date on which the 
                        appeal was referred by a head of supervision 
                        under paragraph (2)(A)(ii) or appealed by an 
                        institution after a denial under paragraph 
                        (2)(A); or
                            ``(ii) if the institution requested a 
                        hearing under paragraph (4), 60 days after the 
                        date on which the hearing concluded.
                    ``(B) Form of recommendation.--The panel may 
                recommend--
                            ``(i) that the material supervisory 
                        determination be continued, terminated, or 
                        otherwise modified; or
                            ``(ii) that the material supervisory 
                        determination be remanded to the examiners to 
                        allow the examiners to consider additional 
                        information presented in connection with the 
                        appeal.
                    ``(C) Notice.--After a recommendation is made under 
                subparagraph (A), the panel shall promptly notify the 
                institution, the head of supervision of the agency, and 
                the head of the agency of the recommendation, which 
                shall contain a statement of the basis for the panel's 
                recommendation and identify the information on which 
                the panel relied in reaching the recommendation.
                    ``(D) Publication.--A copy of each panel 
                recommendation shall be posted on the agency's public 
                website as soon as practicable, with exempt information 
                redacted. If the panel determines that redaction is 
                insufficient to prevent improper disclosure, the 
                recommendation may be presented in summary form.
                    ``(E) Standard of review.--A panel's review of a 
                material supervisory determination being appealed under 
                this subsection shall be de novo.
                    ``(F) No authority to delay or stay orders.--A 
                panel shall have no authority to delay or stay the 
                implementation of any formal order from the applicable 
                agency.
            ``(6) Review by the head of the agency.--
                    ``(A) Response by institution.--Not later than 15 
                days after receiving a notice of a recommendation under 
                paragraph (5)(C), the institution may submit to the 
                head of the agency written exceptions to the 
                recommended decision.
                    ``(B) Review by head of the agency.--Not later than 
                45 days after receiving a notice of a recommendation 
                under paragraph (5)(C), the head of an agency shall 
                review such decision and either ratify or reject the 
                panel's decision.
                    ``(C) Review may not be delegated.--A review by the 
                head of an agency under this paragraph may not be 
                delegated to any other employee of the agency and, in 
                the case of an agency that is headed by a body made up 
                of multiple individuals, all such individuals shall 
                participate in the review.
                    ``(D) Reports to congress.--The Federal banking 
                agencies and the National Credit Union Administration 
                shall each, not later than 90 days after the end of 
                each calendar year, issue a report to the Committee on 
                Financial Services of the House of Representatives and 
                the Committee on Banking, Housing, and Urban Affairs of 
                the Senate describing the actions taken by the agency 
                under this paragraph during such calendar year, 
                including information on each of the panel decisions 
                reviewed, after redacting any confidential supervisory 
                information.
                    ``(E) Publication.--A copy of each decision by the 
                head of the agency under this paragraph shall be posted 
                on the agency's public website as soon as practicable, 
                with any information identifying the appealing 
                institution redacted. If the head of the agency 
                determinates that redaction is insufficient to prevent 
                improper disclosure, the decision may be presented in 
                summary form.
            ``(7) Right to judicial review.--An institution shall have 
        the right to petition for review of an agency head's decision 
        under paragraph (6) by filing a petition for review not later 
        than 60 days after the date on which the decision was made in 
        the United States Court of Appeals for the District of Columbia 
        Circuit or the circuit in which the institution is located.
            ``(8) Retaliation prohibited.--The Federal banking agencies 
        and the National Credit Union Administration may not--
                    ``(A) retaliate against an insured depository 
                institution or insured credit union, or a service 
                provider or institution-affiliated party of an insured 
                depository institution or insured credit union, for 
                exercising rights under this subsection; or
                    ``(B) delay or deny any agency action that would 
                benefit an insured depository institution or insured 
                credit union, or a service provider or institution-
                affiliated party of an insured depository institution 
                or insured credit union, on the basis that a matter 
                under this section is pending under this section.
            ``(9) Definitions.--With respect to the appeal of a 
        material supervisory determination under this subsection:
                    ``(A) Agency.--The term `agency' means the Federal 
                agency, either a Federal banking agency or the National 
                Credit Union Administration, that made the material 
                supervisory determination.
                    ``(B) Institution.--The term `institution' means 
                the company, either an insured depository institution 
                or an insured credit union, with respect to which the 
                material supervisory determination was made.''.

SEC. 403. REVIEW OF RESOLUTION ACTIONS RESULTING IN A MATERIAL LOSS.

    Section 38(k) of the Federal Deposit Insurance Act (12 U.S.C. 
1831o(k)) is amended by adding at the end the following:
            ``(7) Review of resolution actions by corporation inspector 
        general.--
                    ``(A) In general.--If the Deposit Insurance Fund 
                incurs a material loss with respect to an insured 
                depository institution, the inspector general of the 
                Corporation shall--
                            ``(i) review the Corporation's resolution 
                        of the institution to determine whether the 
                        material loss to the Deposit Insurance Fund 
                        could have been avoided by the Corporation when 
                        resolving the institution; and
                            ``(ii) make a written report to the 
                        Corporation and the Congress containing the 
                        results of such review and any recommendations 
                        for preventing a material loss to the Deposit 
                        Insurance Fund in the future when resolving an 
                        institution.
                    ``(B) Testimony to congress.--If the inspector 
                general of the Corporation determines, in a review 
                carried out under subparagraph (A) that the 
                Corporation's resolution of an institution caused a 
                material loss to the Deposit Insurance Fund, but such 
                resolution could have been carried out in a manner to 
                avoid such a material loss, the Chairperson of the 
                Corporation shall testify before the Committee on 
                Financial Services of the House of Representatives and 
                the Committee on Banking, Housing, and Urban Affairs of 
                the Senate to explain why the material loss 
                occurred.''.

             TITLE V--REVIEW OF DISCOUNT WINDOW OPERATIONS

SEC. 501. REVIEW OF DISCOUNT WINDOW OPERATIONS.

    Section 10 of the Federal Reserve Act (12 U.S.C. 241 et seq.) is 
amended--
            (1) by redesignating paragraph (12) as paragraph (11); and
            (2) by adding at the end the following:
            ``(12) Review of discount window operations.--
                    ``(A) In general.--Not later than 60 days after the 
                date of enactment of this paragraph, the Board of 
                Governors shall commence a review of the discount 
                window lending programs of the Federal reserve banks 
                (the `discount window'), and shall complete such review 
                not later than 240 days after the date of enactment of 
                this paragraph.
                    ``(B) Contents.--The review required by 
                subparagraph (A) shall include a consideration of--
                            ``(i) the effectiveness of the discount 
                        window in providing liquidity to financial 
                        institutions, including in times of financial 
                        stress;
                            ``(ii) whether the technology 
                        infrastructure, including means of 
                        communications, are sufficient to support the 
                        timely provision of liquidity, including in 
                        times of financial stress;
                            ``(iii) the effectiveness of cybersecurity 
                        measures;
                            ``(iv) the effectiveness of communications 
                        between Federal reserve banks regarding 
                        discount window operations;
                            ``(v) the effectiveness of the Board of 
                        Governors in providing oversight of the 
                        discount window;
                            ``(vi) how the discount window interacts 
                        with other providers of liquidity, including 
                        the Federal Home Loan Banks, during both normal 
                        operations and times of financial distress; and
                            ``(vii) the effectiveness of existing 
                        discount window operating hours and whether 
                        such hours should be expanded, taking into 
                        account the interaction between discount window 
                        operating hours and the operating hours of 
                        payment systems of the Board of Governors and 
                        Federal reserve banks, such as FedWire and 
                        FedNow.
                    ``(C) Public comment.--In carrying out the review 
                required by subparagraph (A), the Board of Governors 
                shall provide the public with an opportunity to comment 
                on the effectiveness of discount window operations and 
                to offer suggestions for improving operations.
                    ``(D) Remediation plan.--After completing the 
                review required by subparagraph (A) and considering any 
                public comments received pursuant to subparagraph (C), 
                the Board of Governors shall develop, and approve by a 
                vote of the Board of Governors, a written plan to 
                remediate any identified deficiencies or areas for 
                enhancing effectiveness of the discount window, which 
                shall include--
                            ``(i) an identification of actions that the 
                        Board of Governors will take to remediate those 
                        deficiencies;
                            ``(ii) timelines and milestones for 
                        implementing the plan and measures to 
                        demonstrate how the Board of Governors will 
                        maintain implemented improvements on an ongoing 
                        basis; and
                            ``(iii) measures of managing and 
                        controlling deficiencies until the plan is 
                        implemented in full.
                    ``(E) Report to congress on review and plan.--
                            ``(i) In general.--Not later than 365 days 
                        after the date of enactment of this paragraph, 
                        the Board of Governors shall, after approval by 
                        a vote of the Board of Governors, submit a 
                        report to the Committee on Financial Services 
                        of the House of Representatives and the 
                        Committee on Banking, Housing, and Urban 
                        Affairs of the Senate containing--
                                    ``(I) the findings of the review 
                                required by subparagraph (A); and
                                    ``(II) the remediation plan 
                                required by subparagraph (D).
                            ``(ii) Consultation.--Before submitting the 
                        report required by clause (i), the Board of 
                        Governors shall--
                                    ``(I) provide a copy of the 
                                proposed report to the Comptroller 
                                General of the United States and the 
                                Inspector General of the Board of 
                                Governors of the Federal Reserve System 
                                and the Bureau of Consumer Financial 
                                Protection; and
                                    ``(II) provide the Comptroller 
                                General and Inspector General with an 
                                opportunity to provide feedback on the 
                                report.
                            ``(iii) Testimony.--The Chairman of the 
                        Board of Governors shall testify before the 
                        Committee on Financial Services of the House of 
                        Representatives and the Committee on Banking, 
                        Housing, and Urban Affairs of the Senate with 
                        respect to the contents of the report required 
                        under this subparagraph.
                    ``(F) Annual reports to congress.--
                            ``(i) Reports by the board.--The Board of 
                        Governors shall submit an annual report to the 
                        Committee on Financial Services of the House of 
                        Representatives and the Committee on Banking, 
                        Housing, and Urban Affairs of the Senate 
                        containing a review of the effectiveness of 
                        discount window operations.
                            ``(ii) Reports by the inspector general.--
                        The Inspector General of the Board of Governors 
                        of the Federal Reserve System and the Bureau of 
                        Consumer Financial Protection shall submit an 
                        annual report to the Committee on Financial 
                        Services of the House of Representatives and 
                        the Committee on Banking, Housing, and Urban 
                        Affairs of the Senate containing a report on 
                        the progress of the Board of Governors in 
                        implementing the remediation plan required by 
                        subparagraph (D).
                    ``(G) Confidential report information.--Any report 
                required under this paragraph may contain a 
                confidential annex containing information that details 
                any cybersecurity deficiencies or any deficiencies 
                which, if made public, could cause financial 
                instability.''.

              TITLE VI--SMALL BANK HOLDING COMPANY RELIEF

SEC. 601. CHANGES REQUIRED TO THE SMALL BANK HOLDING COMPANY AND 
              SAVINGS AND LOAN HOLDING COMPANY POLICY STATEMENT.

    Not later than 180 days after the date of enactment of this Act, 
the Board of Governors of the Federal Reserve System shall revise 
appendix C to part 225 of title 12, Code of Federal Regulations 
(commonly known as the ``Small Bank Holding Company and Savings and 
Loan Holding Company Policy Statement''), to raise the consolidated 
asset threshold under that appendix to $10,000,000,000 for any bank 
holding company or savings and loan holding company.
                                                 Union Calendar No. 651

118th CONGRESS

  2d Session

                               H. R. 8337

                          [Report No. 118-788]

_______________________________________________________________________

                                 A BILL

 To amend the Federal banking laws to improve the safety and soundness 
      of the United States banking system, and for other purposes.

_______________________________________________________________________

                            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
```