(1) Trends in bank closures and consolidation 
have left many communities without access to bank-
ing services and disproportionately impact under-
served rural and urban communities. 
(2) De novo bank formation has slowed signifi-
cantly following the financial crisis. 
(3) A November 2019 report by the Federal 
Reserve System found that 44 counties in the U.S. 
were ‘‘deeply affected’’ by trends in bank closures 
and consolidation (i.e., had fewer than 10 branches 
in 2012 and lost at least 50 percent of them by 
2017). 
(4) 89 percent of the deeply affected counties 
were rural. 
(5) Rural counties deeply affected by branch 
closures had higher poverty rates, lower median in-
come, and a higher share of their population were 
African American compared to all rural commu-
nities. 
SEC. 3. PHASE-IN OF CAPITAL STANDARDS. 
The appropriate Federal banking agencies shall issue 
rules that provide for a 3-year phase-in period for a finan-
cial institution to meet any Federal capital requirements 
that would otherwise be applicable to the financial institu-
tion, where such 3-year period begins on the date on which 
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the deposit insurance that the financial institution has ob-
tained from the Federal Deposit Insurance Corporation 
becomes effective. 
SEC. 4. CHANGES TO BUSINESS PLANS. 
(a) IN GENERAL.—During the 3-year period begin-
ning on the date on which the deposit insurance that the 
financial institution has obtained from the Federal De-
posit Insurance Corporation becomes effective, a financial 
institution may request to deviate from a business plan 
that has been approved by the appropriate Federal bank-
ing agency by submitting a request to such agency pursu-
ant to this section. 
(b) REVIEW OF CHANGES.—An appropriate Federal 
banking agency shall, not later than the end of the 30- 
day period beginning on the receipt of a request under 
subsection (a)— 
(1) approve, conditionally approve, or deny such 
request; and 
(2) notify the financial institution of such deci-
sion and, if the agency denies the request— 
(A) provide the financial institution with 
the reason for such denial; and 
(B) suggest changes to the request that, if 
adopted, would allow the agency to approve 
such request. 
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(c) RESULT OF FAILURE TO ACT.—If an appropriate 
Federal banking agency fails to approve or deny a request 
within the 30-day period required under subsection (b), 
such request shall be deemed to be approved. 
SEC. 5. RURAL COMMUNITY BANK LEVERAGE RATIO. 
(a) IN GENERAL.—During the 3-year period begin-
ning on the date on which the deposit insurance that a 
rural community bank has obtained from the Federal De-
posit Insurance Corporation becomes effective, the Com-
munity Bank Leverage Ratio for the rural community 
bank shall be 8 percent. 
(b) PHASE-IN AUTHORITY.—The Federal banking 
agencies shall issue rules to phase-in the Community Bank 
Leverage Ratio described under subsection (a) with re-
spect to a rural community bank by setting lower Commu-
nity Bank Leverage Ratio percentages during the first 2 
years of the 3-year period described under subsection (a). 
(c) DEFINITIONS.—In this section: 
(1) COMMUNITY BANK LEVERAGE RATIO.—The 
term ‘‘Community Bank Leverage Ratio’’ has the 
meaning given that term under section 201(a) of the 
Economic Growth, Regulatory Relief, and Consumer 
Protection Act (12 U.S.C. 5371 note). 
(2) FEDERAL
BANKING
AGENCY.—The term 
‘‘Federal banking agency’’ has the meaning given 
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that term under section 3 of the Federal Deposit In-
surance Act (12 U.S.C. 1813). 
(3) RURAL
COMMUNITY
BANK.—The term 
‘‘rural community bank’’ means a financial institu-
tion— 
(A) with total consolidated assets of less 
than $10,000,000,000; and 
(B) located in a rural area, as defined 
under section 1026.35(b)(iv)(A) of title 12, 
Code of Federal Regulations. 
SEC. 6. AGRICULTURAL LOAN AUTHORITY FOR FEDERAL 
SAVINGS ASSOCIATIONS. 
Section 5(c) of the Home Owners’ Loan Act (12 
U.S.C. 1464(c)) is amended— 
(1) in paragraph (1), by adding at the end the 
following: 
‘‘(V) AGRICULTURAL LOANS.—Secured or 
unsecured loans for agricultural purposes.’’; and 
(2) in paragraph (2)(A), by striking ‘‘business, 
or agricultural’’ and inserting ‘‘or business’’. 
SEC. 7. STUDY ON DE NOVO FINANCIAL INSTITUTION. 
(a) STUDY.—The appropriate Federal banking agen-
cies shall, jointly, carry out a study on— 
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(1) the principal causes for the low number of 
de novo financial institutions in the 10-year period 
ending on the date of enactment of this Act; and 
(2) ways to promote more de novo financial in-
stitutions in areas currently underserved by financial 
institutions. 
(b) REPORT TO CONGRESS.—Not later than the end 
of the 1-year period beginning on the date of enactment 
of this Act, the appropriate Federal banking agencies 
shall, jointly, issue a report to Congress containing all 
findings and determinations made in carrying out the 
study required under subsection (a). 
SEC. 8. DEFINITIONS. 
In this Act: 
(1) FINANCIAL
INSTITUTION.—The term ‘‘fi-
nancial institution’’ means a depository institution 
or depository institution holding company. 
(2) OTHER BANKING TERMS.—The terms ‘‘ap-
propriate Federal banking agency’’, ‘‘depository in-
stitution’’, and ‘‘depository institution holding com-
pany’’ have the meaning given those terms, respec-
tively, under section 3 of the Federal Deposit Insur-
ance Act. 
Æ 
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