Promoting Diversity and Inclusion in Banking Act of 2021

To amend the Dodd-Frank Wall Street Reform and Consumer Protection Act to require Federal banking regulators to include a diversity and inclusion component in the Uniform Financial Institutions Rating System, and for other purposes. 1. Short title This Act may be cited as the Promoting Diversity and Inclusion in Banking Act of 2021 2. Diversity and inclusion ratings (a) In general The Dodd-Frank Wall Street Reform and Consumer Protection Act ( 12 U.S.C. 5301 et seq. 342A. Diversity and inclusion ratings (a) In general The Board of Governors, the Comptroller of the Currency, the Corporation, and the National Credit Union Administration Board, in assigning a rating to a depository institution under the Uniform Financial Institutions Rating System (or an equivalent rating by any such agency under a comparable rating system) shall include a diversity and inclusion component that examines— (1) whether the depository institution has effective policies in place to encourage diversity and inclusion in the hiring practices of the institution; (2) whether the depository institution provides training to the employees of the institution, that is appropriate to the size and resources of the institution, on diversity and inclusion; and (3) (A) with respect to a depository institution with total consolidated assets of $1,000,000,000 or less, whether such depository institution has designated an individual to serve as a Diversity and Inclusion Officer who reports to the Chief Executive Officer of the institution on all diversity and inclusion matters; or (B) with respect to a depository institution with total consolidated assets of more than $1,000,000,000, whether such depository institution— (i) has designated an individual to serve as a Diversity and Inclusion Officer; and (ii) has established a committee for diversity and inclusion that holds meetings quarterly and that includes in its membership the Diversity and Inclusion Officer designated under clause (i) and the Chief Executive Officer of the institution. (b) Application to minority depository institutions In carrying out subsection (a) with respect to minority depository institutions, the Board of Governors, the Comptroller of the Currency, the Corporation, and the National Credit Union Administration Board shall— (1) assign such institutions the most favorable rating with respect to the diversity and inclusion component described under subsection (a); and (2) exempt such institutions from any examination procedures related to the diversity and inclusion component described under subsection (a). (c) Definitions In this section: (1) Depository institution The term depository institution (2) Minority depository institution The term minority depository institution (A) a minority depository institution, as defined in section 308 of the Financial Institutions Reform, Recovery, and Enforcement Act of 1989 ( 12 U.S.C. 1463 (B) considered to be a minority depository institution by— (i) the appropriate Federal banking agency; or (ii) the National Credit Union Administration, in the case of an insured credit union. . (b) Clerical amendment The table of contents for the Dodd-Frank Wall Street Reform and Consumer Protection Act is amended by inserting after the item relating to section 342 the following: Sec. 342A. Diversity and inclusion ratings. . June 7, 2022 Reported with an amendment, committed to the Committee of the Whole House on the State of the Union, and ordered to be printed

Summary: Promoting Diversity and Inclusion in Banking Act of 2021 This bill requires banking regulators to rate diversity and inclusion when assessing depository institutions under the Uniform Financial Institutions Rating System or a comparable rating system.