II 

118TH CONGRESS 

1ST SESSION S. 362 

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 SENATE OF THE UNITED STATES 

FEBRUARY 9, 2023 

Mr. ROUNDS (for himself, Ms. LUMMIS, Mr. TILLIS, Mr. HAGERTY, and Mr. 

DAINES) introduced the following bill; which was read twice and referred 

to the Committee on Banking, Housing, and Urban Affairs 

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. 

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 ‘‘Taking Account of In5 stitutions with Low Operation Risk Act of 2023’’ or the 

6 ‘‘TAILOR Act of 2023’’. 


pbinns on DSKJLVW7X2PROD with $$_JOB
2 

•S 362 IS

1 SEC. 2. TAILORING REGULATION TO BUSINESS MODEL AND 

2 RISK. 

3 (a) DEFINITIONS.—In this section— 

4 (1) the term ‘‘Federal financial institutions reg5 ulatory agency’’ means the Office of the Comptroller 

6 of the Currency, the Board of Governors of the Fed7 eral Reserve System, the Federal Deposit Insurance 

8 Corporation, the National Credit Union Administra9 tion, and the Bureau of Consumer Financial Protec10 tion; and 

11 (2) the term ‘‘regulatory action’’— 

12 (A) means any proposed, interim, or final 

13 rule or regulation; and 

14 (B) does not include any action taken by 

15 a Federal financial institutions regulatory agen16 cy that is solely applicable to an individual in17 stitution, including an enforcement action or 

18 order. 

19 (b) CONSIDERATION AND TAILORING.—For any reg20 ulatory action occurring after the date of enactment of 

21 this Act, each Federal financial institutions regulatory 

22 agency shall— 

23 (1) take into consideration the risk profile and 

24 business models of each type of institution or class 

25 of institutions subject to the regulatory action; and 


pbinns on DSKJLVW7X2PROD with $$_JOB
3 

•S 362 IS

1 (2) tailor the regulatory action applicable to an 

2 institution, or type of institution, in a manner that 

3 limits the regulatory impact, including cost, human 

4 resource allocation, and other burdens, on the insti5 tution or type of institution as is appropriate for the 

6 risk profile and business model involved. 

7 (c) FACTORS TO CONSIDER.—In carrying out the re8 quirements of subsection (b), each Federal financial insti9 tutions regulatory agency shall consider— 

10 (1) the aggregate impact of all applicable regu11 latory action on the ability of institutions to flexibly 

12 serve their customers and local markets on and after 

13 the date of enactment of this Act; 

14 (2) the potential impact that efforts to imple15 ment the regulatory action and third-party service 

16 provider actions may work to undercut efforts to tai17 lor the regulatory action described in subsection 

18 (b)(2); and 

19 (3) the statutory provision authorizing the reg20 ulatory action, the congressional intent with respect 

21 to the statutory provision, and the underlying policy 

22 objectives of the regulatory action. 

23 (d) NOTICE OF PROPOSED AND FINAL RULE24 MAKING.—Each Federal financial institutions regulatory 

25 agency shall disclose and document in every notice of proVerDate Sep 11 2014 20:58 Feb 23, 2023 Jkt 039200 PO 00000 Frm 00003 Fmt 6652 Sfmt 6201 E:\BILLS\S362.IS S362

pbinns on DSKJLVW7X2PROD with $$_JOB
4 

•S 362 IS

1 posed rulemaking and in any final rulemaking for a regu2 latory action how the agency has applied subsections (b) 

3 and (c). 

4 (e) REPORTS TO CONGRESS.— 

5 (1) INDIVIDUAL AGENCY REPORTS.—Not later 

6 than 1 year after the date of enactment of this Act 

7 and annually thereafter, each Federal financial insti8 tutions regulatory agency shall submit to the Com9 mittee on Banking, Housing, and Urban Affairs of 

10 the Senate and the Committee on Financial Services 

11 of the House of Representatives a report on the spe12 cific actions taken to tailor the regulatory actions of 

13 the Federal financial institutions regulatory agency 

14 pursuant to the requirements of this section. 

15 (f) LIMITED LOOK-BACK APPLICATION.— 

16 (1) IN GENERAL.—Each Federal financial insti17 tutions regulatory agency shall— 

18 (A) conduct a review of all regulations 

19 issued in final form pursuant to statutes en20 acted during the period beginning on the date 

21 that is 7 years before the date on which this 

22 Act is introduced in the Senate and ending on 

23 the date of enactment of this Act; and 


pbinns on DSKJLVW7X2PROD with $$_JOB
5 

•S 362 IS

1 (B) apply the requirements of this section 

2 to the regulations described in subparagraph 

3 (A). 

4 (2) REVISION.—Any regulation revised under 

5 paragraph (1) shall be revised not later than 3 years 

6 after the date of enactment of this Act. 

7 SEC. 3. SHORT-FORM CALL REPORTS FOR ALL BANKS ELI8 GIBLE FOR THE COMMUNITY BANK LEVER9 AGE RATIO. 

10 The appropriate Federal banking agencies, as defined 

11 in section 3 of the Federal Deposit Insurance Act (12 

12 U.S.C. 1813), shall promulgate regulations establishing a 

13 reduced reporting requirement for all banks eligible for the 

14 Community Bank Leverage Ratio, as defined in section 

15 201(a) of the Economic Growth, Regulatory Relief, and 

16 Consumer Protection Act (12 U.S.C. 5371 note), when 

17 making the first and third report of condition of a year 

18 as required by section 7(a) of the Federal Deposit Insur19 ance Act (12 U.S.C. 1817(a)). 

20 SEC. 4. REPORT TO CONGRESS ON MODERNIZATION OF SU21 PERVISION. 

22 Not later than 18 months after the date of enactment 

23 of this Act, the appropriate Federal banking agencies, as 

24 defined in section 3 of the Federal Deposit Insurance Act 

25 (12 U.S.C. 1813), in consultation with State bank superVerDate Sep 11 2014 20:58 Feb 23, 2023 Jkt 039200 PO 00000 Frm 00005 Fmt 6652 Sfmt 6201 E:\BILLS\S362.IS S362

pbinns on DSKJLVW7X2PROD with $$_JOB
6 

•S 362 IS

1 visors, shall submit to the Committee on Banking, Hous2 ing, and Urban Affairs of the Senate and the Committee 

3 on Financial Services of the House of Representatives a 

4 report on the modernization of bank supervision, including 

5 the following factors: 

6 (1) Changing bank business models. 

7 (2) Examiner workforce and training. 

8 (3) The structure of supervisory activities with9 in banking agencies. 

10 (4) Improving bank-supervisor communication 

11 and collaboration. 

12 (5) The use of supervisory technology. 

13 (6) Supervisory factors uniquely applicable to 

14 community banks. 

15 (7) Changes in statutes necessary to achieve 

16 more effective supervision. 

Æ 


pbinns on DSKJLVW7X2PROD with $$_JOB