II 

117TH CONGRESS 

2D SESSION S. 3745 

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 

MARCH 3, 2022 

Mr. ROUNDS (for himself, Mr. SCOTT of South Carolina, and Ms. LUMMIS) 

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 2022’’ or the 

6 ‘‘TAILOR Act of 2022’’. 


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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 agencies’’ means the Office of the Comp6 troller of the Currency, the Board of Governors of 

7 the Federal Reserve System, the Federal Deposit In8 surance Corporation, the National Credit Union Ad9 ministration, and the Bureau of Consumer Financial 

10 Protection; 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 


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1 (2) tailor such regulatory action applicable to 

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

3 that limits the regulatory impact, including cost, 

4 human resource allocation and other burdens, on 

5 such institution or type of institution as is appro6 priate for the risk profile and business model in7 volved. 

8 (c) FACTORS TO CONSIDER.—In carrying out the re9 quirements of subsection (b), each Federal financial insti10 tutions regulatory agency shall consider— 

11 (1) the aggregate impact of all applicable regu12 latory action on the ability of such institutions to 

13 flexibly serve their customers and local markets now 

14 and in the future; 

15 (2) the potential impact that efforts to imple16 ment the regulatory action and third-party service 

17 provider actions may work to undercut efforts to tai18 lor such regulatory action described in subsection 

19 (b)(2); and 

20 (3) the statutory provision authorizing the reg21 ulatory action, the congressional intent with respect 

22 to the statutory provision, and the underlying policy 

23 objectives of the regulatory action. 

24 (d) NOTICE OF PROPOSED AND FINAL RULE25 MAKING.—Each Federal financial institutions regulatory 


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1 agency shall disclose and document in every notice of pro2 posed rulemaking and in any final rulemaking for a regu3 latory action how the agency has applied subsections (b) 

4 and (c). 

5 (e) REPORTS TO CONGRESS.— 

6 (1) INDIVIDUAL AGENCY REPORTS.—Not later 

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

8 and annually thereafter, each Federal financial insti9 tutions regulatory agency shall submit to the Com10 mittee on Financial Services of the House of Rep11 resentatives and the Committee on Banking, Hous12 ing, and Urban Affairs of the Senate a report on the 

13 specific actions taken to tailor the regulatory actions 

14 of the Federal financial institutions regulatory agen15 cy pursuant to the requirements of this section. 

16 (f) LIMITED LOOK-BACK APPLICATION.— 

17 (1) IN GENERAL.—Each Federal financial insti18 tutions regulatory agency shall— 

19 (A) conduct a review of all regulations 

20 issued in final form pursuant to statutes en21 acted during the period beginning on the date 

22 that is 7 years before the date of the introduc23 tion of this Act in the Senate and ending on the 

24 date of the enactment of this Act; and 


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1 (B) apply the requirements of this section 

2 to such regulations. 

3 (2) REVISION.—Any regulation revised under 

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

5 after the date of enactment of this Act. 

6 SEC. 3. SHORT-FORM CALL REPORTS FOR ALL BANKS ELI7 GIBLE FOR THE COMMUNITY BANK LEVER8 AGE RATIO. 

9 The appropriate Federal banking agencies, as defined 

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

11 U.S.C. 1813), shall adopt rules establishing a reduced re12 porting requirement for all banks eligible for the commu13 nity bank leverage ratio, as defined in section 201(a) of 

14 the Economic Growth, Regulatory Relief, and Consumer 

15 Protection Act (12 U.S.C. 5371 note), when making the 

16 first and third report of condition of a year as required 

17 by section 7(a) of the Federal Deposit Insurance Act (12 

18 U.S.C. 1817(a)). 

19 SEC. 4. REPORT TO CONGRESS ON MODERNIZATION OF SU20 PERVISION. 

21 Not later than 18 months after the date of enactment 

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

23 defined in section 3 of the Federal Deposit Insurance Act 

24 (12 U.S.C. 1813), in consultation with State bank super25 visors, shall examine and submit to the Committee on FiVerDate Sep 11 2014 02:10 Mar 05, 2022 Jkt 029200 PO 00000 Frm 00005 Fmt 6652 Sfmt 6201 E:\BILLS\S3745.IS S3745

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1 nancial Services of the House of Representatives and the 

2 Committee on Banking, Housing, and Urban Affairs of 

3 the Senate a report on the modernization of bank super4 vision, including the following factors: 

5 (1) Changing bank business models. 

6 (2) Examiner workforce and training. 

7 (3) Structure of supervisory activities within 

8 banking agencies. 

9 (4) Improving bank-supervisor communication 

10 and collaboration. 

11 (5) Use of supervisory technology. 

12 (6) Supervisory factors uniquely applicable to 

13 community banks. 

14 (7) Changes in statutes necessary to achieve 

15 more effective supervision. 

Æ 


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