I 
119TH CONGRESS 
2D SESSION 
H. R. 6955 
To make improvements to the Federal banking laws, and for other purposes. 
IN THE HOUSE OF REPRESENTATIVES 
JANUARY 7, 2026 
Mr. HILL of Arkansas (for himself, Mr. BARR, Mr. HUIZENGA, Mr. LUCAS, 
Mr. SESSIONS, Mrs. WAGNER, Mr. WILLIAMS of Texas, Mr. EMMER, Mr. 
LOUDERMILK, Mr. DAVIDSON, Mr. ROSE, Mr. STEIL, Mr. TIMMONS, Mr. 
STUTZMAN, Mr. NORMAN, Mr. MEUSER, Mrs. KIM, Mr. DONALDS, Mr. 
GARBARINO, Mr. FITZGERALD, Mr. FLOOD, Mr. LAWLER, Ms. DE LA 
CRUZ, Mr. OGLES, Mr. NUNN of Iowa, Mrs. MCCLAIN, Ms. SALAZAR, Mr. 
DOWNING, Mr. HARIDOPOLOS, and Mr. MOORE of North Carolina) intro-
duced the following bill; which was referred to the Committee on Finan-
cial Services 
A BILL 
To make improvements to the Federal banking laws, and 
for other purposes. 
Be it enacted by the Senate and House of Representa-
tives 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 
‘‘Main Street Capital Access Act’’ or the ‘‘Main Street 
Act’’. 
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(b) TABLE OF CONTENTS.—The table of contents for 
this Act is as follows: 
Sec. 1. Short title; table of contents. 
TITLE I—NEW BANK FORMATION AND LOCAL COMMUNITY 
ACCESS 
Sec. 101. Promoting New Bank Formation. 
Sec. 102. New Bank Application Numbers Knowledge. 
Sec. 103. Bank Failure Prevention. 
Sec. 104. Rural Depositories Revitalization Study. 
TITLE II—TAILORING BANK REGULATION 
Sec. 201. Taking Account of Institutions with Low Operation Risk. 
Sec. 202. Small Bank Holding Company Relief. 
Sec. 203. Community Bank Leverage Improvement and Flexibility for Trans-
parency. 
Sec. 204. Tailoring and Indexing Enhanced Regulations. 
TITLE III—FAIR AND TRANSPARENT BANK SUPERVISION 
Sec. 301. Halting Uncertain Methods and Practices in Supervision. 
Sec. 302. Fair Audits and Inspections for Regulators’ Exams. 
Sec. 303. Supervisory Modifications for Appropriate Risk-based Testing. 
Sec. 304. Tailored Regulatory Updates for Supervisory Testing. 
Sec. 305. Stress Testing Accountability and Transparency. 
Sec. 306. Community Bank Representation. 
Sec. 307. Financial Integrity and Regulation Management. 
TITLE IV—REGULATORY ACCOUNTABILITY AND TRANSPARENCY 
Sec. 401. FDIC Board Accountability. 
Sec. 402. Stop Agency Fiat Enforcement of Guidance. 
Sec. 403. Regulatory Efficiency, Verification, Itemization, and Enhanced 
Workflow. 
Sec. 404. American Financial Institution Regulatory Sovereignty and Trans-
parency. 
TITLE V—STRENGTHENING LOCAL BANK FUNDING 
Sec. 501. Bringing the Discount Window into the 21st Century. 
Sec. 502. Keeping Deposits Local. 
Sec. 503. Community Bank Deposit Access. 
TITLE VI—PROMOTING BANK COMPETITION AND MERGER 
CLARITY 
Sec. 601. Bank Competition Modernization. 
Sec. 602. Merger Agreement Approvals Clarity and Predictability. 
Sec. 603. Merger Process Review. 
TITLE VII—STRENGTHENING TRANSPARENCY AND 
INVOLVEMENT IN BANK RESOLUTIONS 
Sec. 701. Least Cost Exception. 
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deny a request within the 30-day period required 
under paragraph (2), such request shall be deemed 
to be approved. 
(c) RURAL COMMUNITY DEPOSITORY INSTITUTION 
LEVERAGE RATIO.— 
(1) IN GENERAL.—During the 3-year period be-
ginning on the date on which a rural depository in-
stitution became an insured depository institution, 
the Community Bank Leverage Ratio for the rural 
community bank shall be the lesser of— 
(A) the Community Bank Leverage Ratio 
adopted by the Federal banking agencies pursu-
ant to section 201(b)(1) of the Economic 
Growth, Regulatory Relief, and Consumer Pro-
tection Act (12 U.S.C. 5371 note); or 
(B) 7.5 percent. 
(2) PHASE-IN AUTHORITY.—The Federal bank-
ing agencies shall issue rules to phase-in the Com-
munity Bank Leverage Ratio described under para-
graph (1) with respect to a rural depository institu-
tion by setting lower Community Bank Leverage 
Ratio percentages during the first 2 years of the 3- 
year period described under paragraph (1). 
(3) DEFINITIONS.—In this subsection: 
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(A) 
COMMUNITY
BANK
LEVERAGE 
RATIO.—The term ‘‘Community Bank Leverage 
Ratio’’ has the meaning given that term under 
section 201(a) of the Economic Growth, Regu-
latory Relief, and Consumer Protection Act (12 
U.S.C. 5371 note). 
(B) RURAL AREA.—The term ‘‘rural area’’ 
means— 
(i) a county that is neither in a met-
ropolitan 
statistical 
area 
nor 
in 
a 
micropolitan statistical area that is adja-
cent to a metropolitan statistical area, as 
those terms are defined by the Office of 
Management and Budget and as they are 
applied under applicable Urban Influence 
Codes, established by the Department of 
Agriculture’s Economic Research Service; 
or 
(ii) a census block that is not in an 
urban area, as defined by the Bureau of 
the Census using the latest decennial cen-
sus of the United States. 
(C) RURAL
DEPOSITORY
INSTITUTION.— 
The term ‘‘rural depository institution’’ means 
a depository institution— 
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(i) with total consolidated assets of 
less than $10,000,000,000; and 
(ii) located in a rural area. 
(d) AGRICULTURAL LOAN AUTHORITY FOR FEDERAL 
SAVINGS ASSOCIATIONS.—Section 5(c) of the Home Own-
ers’ 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’’. 
(e) STUDY ON DE NOVO INSURED DEPOSITORY IN-
STITUTIONS.— 
(1) STUDY.—The Federal banking agencies 
shall, jointly, carry out a study on— 
(A) the principal causes for the low num-
ber of de novo insured depository institutions in 
the 10-year period ending on the date of enact-
ment of this Act; and 
(B) ways to promote more de novo insured 
depository institutions in areas currently under-
served by insured depository institutions. 
(2) REPORT TO CONGRESS.—Not later than the 
end of the 1-year period beginning on the date of en-
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actment of this Act, the Federal banking agencies 
shall, jointly, issue a report to Congress containing 
all findings and determinations made in carrying out 
the study required under paragraph (1). 
(f) DEFINITIONS.—In this section, the terms ‘‘appro-
priate Federal banking agency’’, ‘‘depository institution’’, 
‘‘depository institution holding company’’, ‘‘Federal bank-
ing agency’’, and ‘‘insured depository institution’’ have the 
meaning given those terms, respectively, under section 3 
of the Federal Deposit Insurance Act. 
SEC. 102. NEW BANK APPLICATION NUMBERS KNOWLEDGE. 
(a) ANNUAL REPORT ON NATIONAL BANK AND FED-
ERAL SAVINGS ASSOCIATION CHARTER APPLICATIONS.— 
The Comptroller of the Currency shall publish an annual 
report that includes the following, or with respect to any 
equivalent procedure used by the Office of the Comptroller 
of the Currency includes the following: 
(1) The number of applications for a national 
bank or Federal savings association charter received, 
approved on a preliminary basis, approved on a final 
basis, denied, withdrawn, inactive, expired, mooted, 
returned, returned pending resubmission, or other-
wise dispositioned. 
(2) The mean and median times for preliminary 
approval of such applications. 
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(3) The mean and median times for final ap-
proval of such applications. 
(4) To the extent practicable, common reasons 
leading to the denial, withdrawal, or expiration of 
preliminary approval of such applications. 
(b) ANNUAL REPORT ON FEDERAL CREDIT UNION 
CHARTER APPLICATIONS.—The National Credit Union 
Administration shall publish an annual report that in-
cludes the following, or with respect to any equivalent pro-
cedure used by the Board includes the following: 
(1) The number of Federal credit union charter 
applications received, approved on a final basis, de-
nied, withdrawn, inactive, or returned pending re-
submission. 
(2) The mean and median times for final ap-
proval of such applications. 
(3) To the extent practicable, common reasons 
leading to application denial, withdrawal, inactivity, 
or to applications being returned for resubmission. 
(c) ANNUAL REPORT ON DEPOSITORY INSTITUTION 
HOLDING COMPANY APPLICATIONS.— 
(1) IN GENERAL.—The Board of Governors of 
the Federal Reserve System shall publish an annual 
report that includes the following, or with respect to 
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any equivalent procedure used by the Board of Gov-
ernors includes the following: 
(A) The number of applications to become 
a top-tier depository institution holding com-
pany received, approved on a preliminary basis, 
approved on a final basis, denied, withdrawn, 
inactive, expired, mooted, returned, returned 
pending 
resubmission, 
or 
otherwise 
dispositioned. 
(B) The mean and median times to ap-
prove such applications. 
(C) To the extent practicable, common rea-
sons leading to denial or withdrawal of such ap-
plications. 
(2) TOP-TIER DEPOSITORY INSTITUTION HOLD-
ING COMPANY DEFINED.—The term ‘‘top-tier deposi-
tory institution holding company’’ means a deposi-
tory institution holding company (as defined in sec-
tion 3 of the Federal Deposit Insurance Act (12 
U.S.C. 1813)) that is not controlled by any other de-
pository institution holding company. 
(d) ANNUAL REPORT ON FEDERAL DEPOSIT INSUR-
ANCE APPLICATIONS.—The Federal Deposit Insurance 
Corporation shall publish an annual report that includes 
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the following, or with respect to any equivalent procedure 
used by the Corporation includes the following: 
(1) The number of applications for deposit in-
surance received, approved on a preliminary basis, 
approved on a final basis, denied, withdrawn, inac-
tive, expired, mooted, returned, returned pending re-
submission, or otherwise dispositioned. 
(2) The mean and median times to approve 
such applications. 
(3) To the extent practicable, common reasons 
leading to denial or withdrawal of such applications. 
(e) ANNUAL REPORT ON STATE DEPOSITORY INSTI-
TUTION AND STATE CREDIT UNION CHARTER APPLICA-
TIONS.— 
(1) IN GENERAL.—The Board of Governors of 
the Federal Reserve System, the Federal Deposit In-
surance Corporation, and the National Credit Union 
Administration Board shall, jointly, and in consulta-
tion with State banking regulators and State credit 
union regulators, publish an annual report that in-
cludes the following, or with respect to any equiva-
lent procedure used by such agencies includes the 
following: 
(A) The number of applications for a State 
depository institution charter received, approved 
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on a preliminary basis, approved on a final 
basis, denied, withdrawn, inactive, expired, 
mooted, returned, returned pending resubmis-
sion, or otherwise dispositioned. 
(B) The mean and median times to ap-
prove such applications, with times for each 
State shown separately. 
(C) To the extent practicable, common rea-
sons leading to denial or withdrawal of such ap-
plications. 
(2) DEFINITIONS.—In this subsection: 
(A) STATE.—The term ‘‘State’’ means any 
State of the United States, the District of Co-
lumbia, and any territory of the United States. 
(B) STATE
BANK.—The term ‘‘State 
bank’’ has the meaning given such term in sec-
tion 3 of the Federal Deposit Insurance Act (12 
U.S.C. 1813). 
(C) STATE
DEPOSITORY
INSTITUTION.— 
The 
term 
‘‘State 
depository 
institution’’ 
means— 
(i) a State depository institution, as 
defined in section 3 of the Federal Deposit 
Insurance Act (12 U.S.C. 1813); and 
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(ii) a State credit union, as defined in 
section 101 of the Federal Credit Union 
Act (12 U.S.C. 1752). 
(D) STATE
SAVINGS
ASSOCIATION.—The 
term ‘‘State savings association’’ has the mean-
ing given such term in section 3 of the Federal 
Deposit Insurance Act (12 U.S.C. 1813). 
SEC. 103. BANK FAILURE PREVENTION. 
(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 ‘‘ac-
quired’’; 
(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 appli-
cation shall be deemed to have been granted.’’; and 
(4) by adding at the end the following: 
‘‘(B) COMPLETE
RECORD
ON
AN
APPLICA-
TION.— 
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‘‘(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 appli-
cant a letter that either— 
‘‘(I) confirms the record on the appli-
cation is complete; or 
‘‘(II) details all additional information 
that is required for the record on that ap-
plication to be complete. 
‘‘(ii) EXTENSION
OF
NOTICE.—Notwith-
standing clause (i), the Board may, if an appli-
cation is complex, extend the 30-day period de-
scribed under clause (i) for an additional 30 
days. 
‘‘(iii) RECEIPT OF RESPONSE; DEEMING OF 
COMPLETE
RECORD.—Upon receipt of a re-
sponse 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 re-
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sponse, provides the applicant a detailed 
notice describing the deficiencies. 
‘‘(iv) TREATMENT OF THIRD-PARTY INFOR-
MATION.—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 sub-
paragraphs (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
DETERMINA-
TION.—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 
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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.—Sec-
tion 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 applica-
tion’’; 
(2) by redesignating paragraph (7) as para-
graph (9); and 
(3) by inserting after paragraph (6) the fol-
lowing: 
‘‘(7) COMPLETE
RECORD
ON
AN
APPLICA-
TION.— 
‘‘(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 ap-
plicant a letter that either— 
‘‘(i) confirms the record on the appli-
cation is complete; or 
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‘‘(ii) details all additional information 
that is required for the record on that ap-
plication to be complete. 
‘‘(B) EXTENSION
OF
NOTICE.—Notwith-
standing subparagraph (A), the Board may, if 
an application is complex, extend the 30-day pe-
riod described under subparagraph (A) for an 
additional 30 days. 
‘‘(C) RECEIPT OF RESPONSE; DEEMING OF 
COMPLETE
RECORD.—Upon receipt of a re-
sponse from an applicant to a notice requesting 
additional information described under subpara-
graph (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 re-
sponse, provides the applicant a detailed 
notice describing the deficiencies. 
‘‘(D) TREATMENT
OF
THIRD-PARTY
IN-
FORMATION.—In 
determining 
whether 
the 
record on an application is complete, the Board 
may take into account only information pro-
vided by the applicant, and may not base the 
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determination of completeness on any informa-
tion (including reports, views, or recommenda-
tions) 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 ini-
tially submitted to the Board, regardless of 
whether the record on such initial application 
was complete. 
‘‘(B) FAILURE
TO
MAKE
A
DETERMINA-
TION.—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).’’. 
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(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.—Notwith-
standing 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 com-
plete unless the responsible agency— 
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‘‘(i) determines that the applicant’s re-
sponse was materially deficient; and 
‘‘(ii) not later than 30 days after the date 
on which the responsible agency received the re-
sponse, provides the applicant a detailed notice 
describing the deficiencies. 
‘‘(D) TREATMENT OF THIRD-PARTY INFORMA-
TION.—In determining whether the record on an ap-
plication 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 par-
ties. 
‘‘(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 sub-
mitted 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 
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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 de-
scribed under subparagraph (A) at the request of 
the applicant, but may not extend the deadline more 
than 30 days past the deadline described under sub-
paragraph (A).’’. 
SEC. 104. RURAL DEPOSITORIES REVITALIZATION STUDY. 
(a) STUDY.—The Federal banking agencies shall, 
jointly, carry out a study— 
(1) to identify methods to improve the growth, 
capital adequacy, and profitability of depository in-
stitutions in the United States that primarily serve 
rural areas; and 
(2) to identify Federal statutes (other than ap-
propriations Acts) or regulations of the Federal 
banking agencies that limit— 
(A) the methods identified under para-
graph (1); or 
(B) the establishment of de novo deposi-
tory institutions in rural areas. 
(b) REPORT.—Not later than 1 year after the date 
of enactment of this Act, the Federal banking agencies 
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shall, jointly, issue a report to Congress containing all 
findings and determinations made in carrying out the 
study required under subsection (a). 
(c) DEFINITIONS.—In this section: 
(1) DEPOSITORY INSTITUTION.—The term ‘‘de-
pository institution’’ has the meaning given that 
term in section 3 of the Federal Deposit Insurance 
Act (12 U.S.C. 1813). 
(2) FEDERAL BANKING AGENCIES.—The term 
‘‘Federal banking agencies’’ means the Board of 
Governors of the Federal Reserve System, the 
Comptroller of the Currency, and the Federal De-
posit Insurance Corporation. 
(3) RURAL.—With respect to an area, the term 
‘‘rural’’ has the meaning given that term in section 
1026.35(b)(2)(iv)(A) of title 12, Code of Federal 
Regulations. 
TITLE II—TAILORING BANK 
REGULATION 
SEC. 201. TAKING ACCOUNT OF INSTITUTIONS WITH LOW 
OPERATION RISK. 
(a) TAILORING REGULATION TO BUSINESS MODEL 
AND RISK.— 
(1) DEFINITIONS.—In this subsection— 
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manner that limits the regulatory impact, in-
cluding cost, human resource allocation, and 
other burdens, on the institution or type of in-
stitution as is appropriate for the risk profile 
and business model involved. 
(3) FACTORS TO CONSIDER.—In carrying out 
the requirements of paragraph (2) with respect to a 
regulatory action, each Federal financial institutions 
regulatory agency shall consider— 
(A) the aggregate effect of all applicable 
regulatory actions on the ability of institutions 
to flexibly serve customers of the institutions 
and local markets on and after the date of en-
actment of this Act; 
(B) the potential that efforts to implement 
the regulatory action and third-party service 
provider actions may work to undercut efforts 
to tailor the regulatory action, as described in 
paragraph (2)(B); and 
(C) the statutory provision authorizing the 
regulatory action, the congressional intent with 
respect to the statutory provision, and the un-
derlying policy objectives of the regulatory ac-
tion. 
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(4) NOTICE OF PROPOSED AND FINAL RULE-
MAKING.—Each Federal financial institutions regu-
latory agency shall disclose and document in every 
notice of proposed rulemaking and in any final rule-
making for a regulatory action how the agency has 
applied paragraphs (2) and (3). 
(5) REPORTS TO CONGRESS.—Not later than 1 
year after the date of enactment of this Act and an-
nually thereafter, each Federal financial institutions 
regulatory agency shall submit to the Committee on 
Banking, Housing, and Urban Affairs of the Senate 
and the Committee on Financial Services of the 
House of Representatives a report on the specific ac-
tions taken to tailor the regulatory actions of the 
Federal financial institutions regulatory agency pur-
suant to the requirements of this section. 
(6) LIMITED LOOK-BACK APPLICATION.— 
(A) IN GENERAL.—Each Federal financial 
institutions regulatory agency shall— 
(i) conduct a review of all final regula-
tions issued pursuant to statutes enacted 
during the period beginning on the date 
that is 15 years before the date on which 
this Act is introduced and ending on the 
date of enactment of this Act; and 
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(ii) apply the requirements of this sec-
tion to the regulations described in clause 
(i). 
(B) REVISION.—Any regulation revised 
under subparagraph (A) shall be revised not 
later than 3 years after the date of enactment 
of this Act. 
(b) SHORT-FORM CALL REPORTS FOR ALL BANKS 
ELIGIBLE
FOR
THE
COMMUNITY
BANK
LEVERAGE 
RATIO.—The appropriate Federal banking agencies, as 
defined in section 3 of the Federal Deposit Insurance Act 
(12 U.S.C. 1813), shall promulgate regulations estab-
lishing a reduced reporting requirement for all banks eligi-
ble for the Community Bank Leverage Ratio, as defined 
in section 201(a) of the Economic Growth, Regulatory Re-
lief, and Consumer Protection Act (12 U.S.C. 5371 note), 
when making the first and third report of condition of a 
year as required by section 7(a) of the Federal Deposit 
Insurance Act (12 U.S.C. 1817(a)). 
(c) REPORT TO CONGRESS ON MODERNIZATION OF 
SUPERVISION.—Not later than 18 months after the date 
of enactment of this Act, the appropriate Federal banking 
agencies, as defined in section 3 of the Federal Deposit 
Insurance Act (12 U.S.C. 1813), in consultation with 
State bank supervisors, shall submit to the Committee on 
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Banking, Housing, and Urban Affairs of the Senate and 
the Committee on Financial Services of the House of Rep-
resentatives a report on the modernization of bank super-
vision, including the following factors: 
(1) Changing bank business models. 
(2) Examiner workforce and training. 
(3) The structure of supervisory activities with-
in banking agencies. 
(4) Improving bank-supervisor communication 
and collaboration. 
(5) The use of supervisory technology. 
(6) Supervisory factors uniquely applicable to 
community banks. 
(7) Changes in statutes necessary to achieve 
more effective supervision. 
SEC. 202. SMALL BANK HOLDING COMPANY RELIEF. 
Not later than 180 days after the date of the enact-
ment 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 consoli-
dated 
asset 
threshold 
under 
that 
appendix 
to 
$25,000,000,000 for any bank holding company or savings 
and loan holding company. 
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SEC. 203. COMMUNITY BANK LEVERAGE IMPROVEMENT 
AND FLEXIBILITY FOR TRANSPARENCY. 
(a) COMMUNITY BANK LEVERAGE RATIO.— 
(1) IN GENERAL.—Section 201 of the Economic 
Growth, Regulatory Relief, and Consumer Protection 
Act (12 U.S.C. 5371 note) is amended— 
(A) in subsection (a)(3)(A), by striking 
‘‘$10,000,000,000’’ 
and 
inserting 
‘‘$15,000,000,000’’; and 
(B) in subsection (b)(1), by striking ‘‘not 
less than 8 percent and not more than 10 per-
cent’’ and inserting ‘‘not less than 6 percent 
and not more than 8 percent’’. 
(2) RULEMAKING DEADLINE.—Not later than 
the end of the 180-day period beginning on the date 
of enactment of this Act, and after reviewing the re-
port issued pursuant to subsection (b)(2), the Board 
of Governors of the Federal Reserve System, the 
Comptroller of the Currency, and the Federal De-
posit Insurance Corporation shall propose and, not 
later than 1 year after the date of the enactment of 
this Act, such agencies shall finalize rules to carry 
out the amendments made by paragraph (1) and the 
recommended modifications contained in such re-
port. 
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(b) REVIEW OF THE COMMUNITY BANK LEVERAGE 
RATIO.— 
(1) IN GENERAL.—The Board of Governors of 
the Federal Reserve System, the Comptroller of the 
Currency, and the Federal Deposit Insurance Cor-
poration shall commence a review of the Community 
Bank Leverage Ratio (‘‘CBLR’’) developed under 
section 201 of the Economic Growth, Regulatory Re-
lief, and Consumer Protection Act (12 U.S.C. 5371 
note), and rules issued thereunder, which shall in-
clude a consideration of how to modify and calibrate 
the CBLR to encourage more qualifying community 
banks to opt-in to the CBLR framework, with an 
additional focus on— 
(A) those qualifying community banks with 
fewer assets; and 
(B) providing regulatory compliance bur-
den relief so that the CBLR is simple to apply. 
(2) REPORT.—Not later than the end of the 
150-day period beginning on the date of enactment 
of this Act, the Board of Governors of the Federal 
Reserve System, the Comptroller of the Currency, 
and the Federal Deposit Insurance Corporation shall 
issue a report to the Committee on Financial Serv-
ices of the House of Representatives and the Com-
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mittee on Banking, Housing, and Urban Affairs of 
the Senate containing— 
(A) all findings and determinations made 
in carrying out the review under paragraph (1); 
and 
(B) specific recommendations on modifica-
tions, if any, to— 
(i) the calculation of the numerator 
and denominator of the CBLR; 
(ii) the treatment of specific asset 
classes or exposures to better reflect the 
risk profiles of community banks; 
(iii) the definition of and qualifying 
criteria for a qualifying community bank; 
(iv) enhancements to the procedures 
for opting into or out of the CBLR frame-
work, including streamlined reporting and 
transition mechanisms; 
(v) the grace period to facilitate the 
transition to and from a modified CBLR 
regime; and 
(vi) any statutory changes that may 
be needed to address such recommenda-
tions. 
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(3) QUALIFYING COMMUNITY BANK DEFINED.— 
In this subsection, the term ‘‘qualifying community 
bank’’ has the meaning given that term in section 
201(a)(3)(A) of the Economic Growth, Regulatory 
Relief, and Consumer Protection Act (12 U.S.C. 
5371 note). 
SEC. 204. TAILORING AND INDEXING ENHANCED REGULA-
TIONS. 
(a) THRESHOLD ADJUSTMENTS TO ACCOUNT FOR 
HISTORICAL INCREASES IN CURRENT-DOLLAR UNITED 
STATES GROSS DOMESTIC PRODUCT.— 
(1) FEDERAL RESERVE ACT.—The second sub-
section (s) (relating to assessments) of section 11 of 
the Federal Reserve Act (12 U.S.C. 248(s)) is 
amended— 
(A) 
in 
paragraph 
(2), 
by 
striking 
‘‘$100,000,000,000’’ each place that term ap-
pears and inserting ‘‘$150,000,000,000’’; and 
(B) in paragraph (3), by striking ‘‘between 
$100,000,000,000 and $250,000,000,000’’ and 
inserting 
‘‘between 
$150,000,000,000 
and 
$370,000,000,000’’. 
(2) BANK HOLDING COMPANY ACT OF 1956.— 
Section 4(k)(6)(B)(ii) of the Bank Holding Com-
pany Act of 1956 (12 U.S.C. 1843(k)(6)(B)(ii)) is 
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amended, by striking ‘‘$10,000,000,000’’ and insert-
ing ‘‘$15,000,000,000’’. 
(3) FINANCIAL STABILITY ACT OF 2010.—The 
Financial Stability Act of 2010 (12 U.S.C. 5311 et 
seq.) is amended— 
(A) in section 116(a) (12 U.S.C. 5326(a)), 
by striking ‘‘$250,000,000,000’’ and inserting 
‘‘$370,000,000,000’’; 
(B) in section 121(a) (12 U.S.C. 5331(a)), 
by striking ‘‘$250,000,000,000’’ and inserting 
‘‘$370,000,000,000’’; 
(C) 
in 
section 
163(b) 
(12 
U.S.C. 
5363(b))— 
(i) by striking ‘‘$250,000,000,000’’ 
each place that term appears and inserting 
‘‘$370,000,000,000’’; and 
(ii) by striking ‘‘$10,000,000,000’’ 
and inserting ‘‘$15,000,000,000’’; 
(D) in section 164 (12 U.S.C. 5364), by 
striking ‘‘$250,000,000,000’’ and inserting 
‘‘$370,000,000,000’’; and 
(E) in section 165 (12 U.S.C. 5365)— 
(i) in subsection (a)— 
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(I) in paragraph (1), by striking 
‘‘$250,000,000,000’’ 
and 
inserting 
‘‘$370,000,000,000’’; and 
(II) in paragraph (2)(C), by 
striking ‘‘$100,000,000,000’’ and in-
serting ‘‘$150,000,000,000’’; 
(ii) in subsection (h)(2), by striking 
‘‘$50,000,000,000’’ each place that term 
appears and inserting ‘‘$75,000,000,000’’; 
(iii) in subsection (i)(2)(A), by strik-
ing ‘‘$250,000,000,000’’ and inserting 
‘‘$370,000,000,000’’; and 
(iv) in subsection (j)(1), by striking 
‘‘$250,000,000,000’’ 
and 
inserting 
‘‘$370,000,000,000’’. 
(4) ECONOMIC GROWTH, REGULATORY RELIEF, 
AND CONSUMER PROTECTION ACT.—Section 401(f) 
of the Economic Growth, Regulatory Relief, and 
Consumer Protection Act (12 U.S.C. 5365 note) is 
amended by striking ‘‘$250,000,000,000’’ and in-
serting ‘‘$370,000,000,000’’. 
(b) PERIODIC ADJUSTMENTS TO THRESHOLDS TO 
ACCOUNT FOR FUTURE INCREASES IN CURRENT-DOLLAR 
UNITED STATES GROSS DOMESTIC PRODUCT.— 
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(1) IN GENERAL.—The Financial Stability Act 
of 2010 (12 U.S.C. 5311 et seq.) is further amended 
by adding at the end the following: 
‘‘SEC. 177. PERIODIC ADJUSTMENTS TO THRESHOLDS TO 
ACCOUNT FOR INCREASES IN CURRENT-DOL-
LAR 
UNITED 
STATES 
GROSS 
DOMESTIC 
PRODUCT. 
‘‘(a) IN GENERAL.—By April 1, 2031, and the 1st 
day of each subsequent 5-year period, the Board of Gov-
ernors shall increase the thresholds described in sub-
section (b) by the ratio, if greater than 1, of the annual 
value of current-dollar United States gross domestic prod-
uct, published by the Department of Commerce, for the 
calendar year preceding the year in which the adjustment 
is calculated under this section, to the published annual 
value of such index for the calendar year preceding April 
1, 2026. 
‘‘(b) COVERED THRESHOLDS.—The thresholds de-
scribed in this subsection are the following: 
‘‘(1) Each bank holding company or savings 
and loan holding company total consolidated asset 
amount in the second subsection (s) (relating to as-
sessments) of section 11 of the Federal Reserve Act. 
‘‘(2) Each bank holding company total consoli-
dated asset amount in— 
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‘‘(A) sections 116(a), 121(a), 163(b), 164, 
165(a)(1), 165(h)(2), 165(j)(1) of this Act; and 
‘‘(B) section 401(f) of the Economic 
Growth, Regulatory Relief, and Consumer Pro-
tection Act. 
‘‘(3) Each financial company total consolidated 
asset amount in section 165(i)(2)(A) of this Act. 
‘‘(c) CURRENCY OF INFORMATION.—The values used 
in the calculation under subsection (a) shall be, as of the 
date of the calculation, the values most recently published 
by the Department of Commerce. 
‘‘(d) ROUNDING.— 
‘‘(1) If any amount equal to or greater than 
$100,000,000,000 determined under subsection (a) 
for any period is not a multiple of $50,000,000,000, 
the amount shall be rounded up to the nearest 
$50,000,000,000. 
‘‘(2) If any amount less than $100,000,000,000 
determined under subsection (a) for any period is 
not a multiple of $5,000,000,000, the amount shall 
be rounded up to the nearest $5,000,000,000. 
‘‘(e) PUBLICATION.—Not later than April 5 of any 
calendar year in which an adjustment is required to be 
calculated under subsection (a), the Board of Governors 
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shall publish in the Federal Register the amounts as so 
calculated. 
‘‘(f) IMPLEMENTATION PERIOD.—Any increase in 
amounts determined under subsection (a) shall take effect 
on January 1 of the year immediately succeeding the cal-
endar year in which the increase is required to be cal-
culated under subsection (a). 
‘‘SEC. 178. ADJUSTMENTS TO THRESHOLDS ESTABLISHED 
BY RULE TO ACCOUNT FOR INCREASES IN 
CURRENT-DOLLAR UNITED STATES GROSS 
DOMESTIC PRODUCT. 
‘‘(a) AGENCY REVIEW.—Not later than June 30, 
2026, and the 1st day of each subsequent 5-year period, 
the Board of Governors, the Comptroller of the Currency, 
and the Corporation shall, to the extent applicable, re-
view— 
‘‘(1) any regulation— 
‘‘(A) implementing section 165 of this Act; 
or 
‘‘(B) making specific cross-reference to any 
regulation of the Board of Governors imple-
menting section 165 of this Act; and 
‘‘(2) any asset threshold or other quantitative 
threshold in such regulations implementing section 
165 of this Act, or in such regulations making spe-
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cific cross-reference to any regulation of the Board 
of Governors implementing section 165 of this Act, 
the amount of which is not prescribed by statute. 
‘‘(b) MODIFICATIONS REQUIRED.—The Board of 
Governors, the Comptroller of the Currency, and the Cor-
poration shall modify any such thresholds identified by 
each review conducted under subsection (a) by the ratio, 
if greater than 1, of the annual value of current-dollar 
United States gross domestic product, published by the 
Department of Commerce, for the calendar year preceding 
the year in which the modification is calculated under this 
section, to the published annual value of such index for 
the calendar year preceding the effective date of such 
threshold, as each respective agency shall determine as ap-
propriate for such regulations. In making such determina-
tion, the Board of Governors, the Comptroller of the Cur-
rency, and the Corporation shall— 
‘‘(1) use the values for current-dollar United 
States gross domestic product most recently pub-
lished by the Department of Commerce as of the 
date of commencement of the review; 
‘‘(2) seek to establish, to the extent feasible, 
uniform thresholds for use by each such agency, tak-
ing into account the entities regulated by each such 
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agency and the purposes for which such threshold 
was established; and 
‘‘(3) seek to adjust such thresholds, to the ex-
tent feasible, with rounding consistent with section 
177(d) of this Act. 
‘‘(c) REPORT.—Upon conclusion of each review re-
quired under subsection (a), each of the Board of Gov-
ernors, the Comptroller of the Currency, and the Corpora-
tion shall transmit a report to Congress containing a de-
scription of any modification of any regulation such agen-
cy made pursuant to subsection (b).’’. 
(2) CLERICAL AMENDMENT.—The table of con-
tents in section 1(b) of the Dodd-Frank Wall Street 
Reform and Consumer Protection Act is amended by 
inserting after the item relating to section 176 the 
following: 
‘‘Sec. 177. Periodic adjustments to thresholds to account for increases in cur-
rent-dollar United States gross domestic product. 
‘‘Sec. 178. Adjustments to thresholds established by rule to account for in-
creases in current-dollar United States gross domestic prod-
uct.’’. 
TITLE 
III—FAIR 
AND 
TRANS-
PARENT BANK SUPERVISION 
SEC. 301. HALTING UNCERTAIN METHODS AND PRACTICES 
IN SUPERVISION. 
(a) FINDINGS.—Congress finds that— 
(1) CAMELS ratings (Capital adequacy, Asset 
quality, Management, Earnings, Liquidity, and Sen-
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sitivity to market risk) are a critical tool for evalu-
ating the safety and soundness of financial institu-
tions, and the basis for determining significant regu-
latory matters such as the evaluation for mergers 
and acquisitions and a bank’s deposit insurance pre-
miums; 
(2) the CAMELS rating system relies heavily 
on examiner judgment, which can lead to subjective 
and inconsistent ratings across similar institutions; 
(3) establishing clear, objective measures for 
each CAMELS component and their relative 
weighting in determining composite ratings will pro-
mote fairness, consistency, and accountability in su-
pervisory assessments; and 
(4) examination and supervision, as well as the 
CAMELS rating system, should focus on a financial 
institution’s material financial condition or solvency. 
(b) AMENDMENTS TO THE CAMELS RATING SYS-
TEM.— 
(1) IN GENERAL.—The Federal Financial Insti-
tutions Examination Council Act of 1978 (12 U.S.C. 
3301 et seq.) is amended by adding at the end the 
following: 
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‘‘(B) chapter 2 of title I of Public Law 91– 
508 (12 U.S.C. 1951 et seq.); 
‘‘(C) subchapter II of chapter 53 of title 
31, United States Code; and 
‘‘(D) any other applicable requirements 
and implementing regulations relating to the 
prevention of money laundering and terrorist fi-
nancing; and 
‘‘(5) ensure that composite ratings are deter-
mined based on a transparent methodology that is 
limited to the objective criteria established for each 
CAMELS component. 
‘‘(b) RULEMAKING.—Not later than 12 months after 
the Council makes the recommendations required under 
subsection (a), the Federal financial institutions regu-
latory agencies shall, jointly, issue rules to carry out the 
recommendations described under subsection (a). 
‘‘(c) PUBLIC COMMENT PERIOD.—In issuing the 
rules required under subsection (b), the Federal financial 
institutions regulatory agencies shall— 
‘‘(1) publish a notice of proposed rulemaking 
with respect to such rules; and 
‘‘(2) provide for a public comment period of not 
less than 90 days. 
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‘‘(d) RULE OF CONSTRUCTION.—Nothing in this sec-
tion may be construed to limit the authority of the Federal 
financial institutions regulatory agencies to take super-
visory, adjudicatory, or enforcement actions to ensure the 
safety and soundness of financial institutions.’’. 
(2) WELL
MANAGED
DEFINITION.—Section 
2(o)(9)(A) of the Bank Holding Company Act of 
1956 (12 U.S.C. 1841(o)(9)(A)) is amended— 
(A) by striking ‘‘achievement of’’ and all 
that follows through ‘‘a CAMEL’’ and inserting 
‘‘achievement of a CAMEL’’; 
(B) by striking ‘‘; and’’ and inserting a pe-
riod; and 
(C) by striking clause (ii). 
SEC. 302. FAIR AUDITS AND INSPECTIONS FOR REGU-
LATORS’ EXAMS. 
(a) TIMELINESS OF EXAMINATIONS AND EXAMINA-
TION REPORTS.—The Federal Financial Institutions Ex-
amination Council Act of 1978 (12 U.S.C. 3301 et seq.), 
as amended by section 301, is further amended by adding 
at the end the following: 
‘‘SEC. 1013. TIMELINESS OF EXAMINATIONS AND EXAMINA-
TION REPORTS. 
‘‘(a) TIMELINESS OF EXAMINATIONS.—A Federal fi-
nancial institutions regulatory agency shall complete any 
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examination of a financial institution within 270 days of 
commencing the examination, except that such period may 
be extended by the Federal financial institutions regu-
latory agency by providing written notice to the financial 
institution describing with particularity the reasons that 
a longer period is needed. 
‘‘(b) FINAL EXAMINATION REPORT.—A Federal fi-
nancial institutions regulatory agency shall provide a final 
examination report to a financial institution not later than 
90 days after the later of— 
‘‘(1) the exit interview for an examination of 
the institution; or 
‘‘(2) the provision of additional material infor-
mation by the institution relating to the examina-
tion. 
‘‘(c) EXIT INTERVIEW REQUIREMENT.—Within 30 
days of completing an examination, a Federal financial in-
stitutions regulatory agency shall conduct an exit inter-
view with the financial institution’s senior management, 
except that such period may be extended by the Federal 
financial institutions regulatory agency by providing writ-
ten notice to the institution and the Board describing with 
particularity the reasons that a longer period is needed 
to complete the exit interview. 
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‘‘(d) EXAMINATION MATERIALS.—Upon the request 
of a financial institution, the Federal financial institutions 
regulatory agency shall include with the final report an 
appendix listing all examination or other factual informa-
tion relied upon by the agency in support of a material 
supervisory determination.’’. 
(b) TIMELINESS OF REQUIRED PERMISSION, REGU-
LATORY, AND REPORTING GUIDANCE.—The Federal Fi-
nancial Institutions Examination Council Act of 1978 (12 
U.S.C. 3301 et seq.), as amended by subsection (a), is 
further amended by adding at the end the following: 
‘‘SEC. 1014. TIMELINESS OF REQUIRED PERMISSION, REGU-
LATORY, AND REPORTING GUIDANCE. 
‘‘(a) REQUEST FOR PERMISSION OR GUIDANCE.— 
With respect to an action that a financial institution is 
taking or is intending to take, the financial institution 
may request a written determination by the applicable 
Federal financial institutions regulatory agency of— 
‘‘(1) the agency’s non-objection to the financial 
institution conducting a particular activity; 
‘‘(2) the agency’s interpretation of a law or reg-
ulation; and 
‘‘(3) the agency’s interpretation of generally ac-
cepted accounting principles or accounting objec-
tives, standards, and requirements. 
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‘‘(b) CONTENTS
OF REQUEST.—A request made 
under subsection (a) shall be in writing and contain— 
‘‘(1) the nature of the request; 
‘‘(2) applicable facts relating to the matter; 
‘‘(3) applicable law, regulation, or generally ac-
cepted accounting principles relating to the matter; 
and 
‘‘(4) a summary of the request. 
‘‘(c) RESPONSE TO REQUEST.—A Federal financial 
institutions regulatory agency receiving a request under 
subsection (a) shall, not later than 30 days after receiving 
the request— 
‘‘(1) provide the financial institution making 
the request with written notification that the agency 
received the request and stating whether the request 
contains all of the information required under sub-
section (b); and 
‘‘(2) if the request does not contain all of the 
information required under subsection (b), provide 
the financial institution with an explanation of what 
information is missing. 
‘‘(d) PROVIDING MISSING INFORMATION.—If a Fed-
eral financial institutions regulatory agency informs the 
financial institution under subsection (c) that the request 
does not contain all the information required under sub-
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section (b), the financial institution may provide the miss-
ing information to the Federal financial institutions regu-
latory agency during the 30-day period beginning on the 
date the financial institution receives the explanation of 
the missing information under subsection (c). 
‘‘(e) DETERMINATION.—A Federal financial institu-
tions regulatory agency receiving a request under sub-
section (a) shall make a determination on the request and 
provide the financial institution with a written notice of 
such determination— 
‘‘(1) if the initial request contains the informa-
tion required under subsection (b), not later than 
the end of the 60-day period beginning on the date 
the Federal financial institutions regulatory agency 
notifies the financial institution of the receipt of the 
request under subsection (c); or 
‘‘(2) if the initial request does not contain the 
information required under subsection (b), but the 
financial institution provides the missing information 
during the 30-day period described under subsection 
(d), not later than the end of the 60-day period be-
ginning on the date such missing information is pro-
vided; or 
‘‘(3) if the initial request does not contain the 
information required under subsection (b), and the 
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financial institution does not provide the missing in-
formation during the 30-day period described under 
subsection (d), not later than the end of the 60-day 
period beginning on the end of such 30-day period. 
‘‘(f) REPORTS AND PUBLICATION.—Each Federal fi-
nancial institutions regulatory 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 financial institutions regulatory 
agency. Each Federal financial institutions regulatory 
agency shall redact any confidential supervisory informa-
tion about the financial institution, any identifying facts 
about the financial institution, and any sensitive person-
ally identifiable information, and anonymize any un-re-
dacted information that could, individually or in the aggre-
gate, identify the financial institution.’’. 
(c) OFFICE OF INDEPENDENT EXAMINATION RE-
VIEW.— 
(1) IN GENERAL.—The Federal Financial Insti-
tutions Examination Council Act of 1978 (12 U.S.C. 
3301 et seq.), as amended by subsection (b), is fur-
ther amended by adding at the end the following: 
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‘‘SEC. 1015. OFFICE OF INDEPENDENT EXAMINATION RE-
VIEW. 
‘‘(a) ESTABLISHMENT.—There is established in the 
Council an Office of Independent Examination Review 
(the ‘Office’). 
‘‘(b) BOARD OF INDEPENDENT EXAMINATION RE-
VIEW.— 
‘‘(1) IN
GENERAL.—The head of the Office 
shall be the Board of Independent Examination Re-
view, which shall be comprised of 3 members, ap-
pointed by the President, by and with the advice and 
consent of the Senate. 
‘‘(2) QUALIFICATIONS.—The President shall 
appoint the 1 member of the Board from each of the 
following classes of individuals: 
‘‘(A) Individuals who have been employed 
by a Federal financial institutions regulatory 
agency. 
‘‘(B) Individuals who— 
‘‘(i) are a licensed attorney or a cer-
tified public accountant authorized to prac-
tice 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; 
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‘‘(iii) have relevant work-related expe-
rience in consumer affairs or compliance 
with consumer protection laws with respect 
to financial institutions; 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 Ad-
ministration. 
‘‘(C) Individuals— 
‘‘(i) with at least 10 years private sec-
tor financial services senior management- 
level experience; and 
‘‘(ii) recommended by— 
‘‘(I) an insured depository insti-
tution; 
‘‘(II) an insured credit union; or 
‘‘(III) a trade association for 
such institutions or credit unions. 
‘‘(3) PROHIBITION
ON
CERTAIN
INDIVIDUALS 
SERVING AS A BOARD MEMBER.—The President may 
not appoint an individual as a member of the Board 
if the individual— 
‘‘(A) is, or was during the previous 2-year 
period, employed by a Federal financial institu-
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tions regulatory agency or a Federal reserve 
bank; 
‘‘(B) is, or was during the previous 2-year 
period, employed by a financial institution; or 
‘‘(C) is reporting, or was reporting in the 
past 5 years, directly or indirectly to a Federal 
financial institutions regulatory agency official 
who makes material supervisory determinations. 
‘‘(4) CONSULTATION.—In appointing members 
of the Board, the President shall consult with the 
Federal financial institutions regulatory agencies 
and financial institutions. 
‘‘(5) TERM.— 
‘‘(A) IN GENERAL.—Each member of the 
Board shall serve for a term of 3 years. 
‘‘(B) TERM
LIMITATION.—No individual 
may serve more than 2 full terms on the Board. 
‘‘(6) POLITICAL AFFILIATION.—Not more than 
2 members of the Board shall be members of the 
same political party. 
‘‘(7) QUORUM.— 
‘‘(A) IN
GENERAL.—3 members of the 
Board shall constitute a quorum. 
‘‘(B) INITIAL
QUORUM.—During the 6- 
month period beginning on the date of enact-
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ment of this section, 1 member of the Board 
shall constitute a quorum until the Board has 
3 members. 
‘‘(c) STAFFING.—The Board is authorized to hire 
staff to support the activities of the Office of Independent 
Examination Review. One-fifth of the costs and expenses 
of the Office, including the salaries of its employees, shall 
be paid by each of the Federal financial institutions regu-
latory agencies. Annual assessments for such share shall 
be levied by the Council based upon its projected budget 
for the year, and additional assessments may be made dur-
ing the year if necessary. 
‘‘(d) DUTIES.—The Board shall— 
‘‘(1) receive and, at the discretion of the Board, 
investigate complaints from financial institutions, 
their representatives, or another entity acting on be-
half of such institutions, concerning examinations, 
examination practices, or examination reports; 
‘‘(2) hold meetings, at least once every three 
months and in locations designed to encourage par-
ticipation from all sections of the United States, 
with financial institutions, their representatives, or 
another entity acting on behalf of such institutions, 
to discuss examination procedures, examination 
practices, or examination policies; 
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‘‘(3) review examination procedures of the Fed-
eral financial institutions regulatory agencies to en-
sure that the written examination policies of those 
agencies are being followed in practice and adhere to 
the standards for consistency; 
‘‘(4) conduct a continuing and regular program 
of examination quality assurance for all examination 
types conducted by the Federal financial institutions 
regulatory agencies; 
‘‘(5) carry out an independent review of any su-
pervisory appeal initiated under section 1016; and 
‘‘(6) report annually to the Committee on Fi-
nancial Services of the House of Representatives, the 
Committee on Banking, Housing, and Urban Affairs 
of the Senate, and the Council, on the reviews car-
ried out pursuant to paragraphs (3) and (5), includ-
ing compliance with the requirements set forth in 
section 1014 regarding timeliness of examination re-
ports, and the Board’s recommendations for im-
provements in examination procedures, practices, 
and policies. 
‘‘(e) CONFIDENTIALITY.—The Board and the Council 
shall keep confidential— 
‘‘(1) all meetings, discussions, and information 
provided by financial institutions and Federal finan-
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cial institutions regulatory agencies that involve con-
fidential supervisory information or privileged infor-
mation; 
‘‘(2) all information and communications ex-
changed between a financial institution and the Of-
fice of Independent Examination Review; and 
‘‘(3) all information and communications ex-
changed between a Federal financial institutions reg-
ulatory agency and the Office of Independent Exam-
ination Review.’’. 
(2) DEFINITIONS.—Section 1003 of the Federal 
Financial Institutions Examination Council Act of 
1978 (12 U.S.C. 3302) is amended— 
(A) in paragraph (2), by striking ‘‘and’’ at 
the end; and 
(B) by adding at the end the following: 
‘‘(4) the term ‘Board’ means the Board of Inde-
pendent Examination Review established under sec-
tion 1015(b); 
‘‘(5) the term ‘material supervisory determina-
tion’ has the meaning given such term in section 
309(c) of the Riegle Community Development and 
Regulatory Improvement Act of 1994; 
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‘‘(6) the term ‘insured depository institution’ 
has the meaning given that term in section 3 of the 
Federal Deposit Insurance Act; and 
‘‘(7) the term ‘insured credit union’ has the 
meaning given that term in section 101 of the Fed-
eral Credit Union Act.’’. 
(d) RIGHT TO INDEPENDENT REVIEW OF MATERIAL 
SUPERVISORY DETERMINATIONS.—The Federal Financial 
Institutions Examination Council Act of 1978 (12 U.S.C. 
3301 et seq.), as amended by subsection (c), is further 
amended by adding at the end the following: 
‘‘SEC. 1016. RIGHT TO INDEPENDENT REVIEW OF MATERIAL 
SUPERVISORY DETERMINATIONS. 
‘‘(a) IN GENERAL.—A financial institution shall have 
the right to obtain an independent review, as described 
in this section, of a material supervisory determination 
contained in a final report of examination. 
‘‘(b) NOTICE.— 
‘‘(1) TIMING.—A financial institution seeking 
review of a material supervisory determination under 
this section shall file a written notice with the Board 
within 60 days after receiving the final report of ex-
amination that is the subject of such review. 
‘‘(2) EXTENSION.—The institution may file a 
written request with the Board for an extension of 
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the 60-day time period described under paragraph 
(1), which shall state good cause for granting the ex-
tension. Such request shall be granted in the sole 
discretion of the Board. 
‘‘(3) IDENTIFICATION
OF
DETERMINATION.— 
The written notice shall— 
‘‘(A) identify the material supervisory de-
termination that is the subject of the requested 
independent examination review; 
‘‘(B) state the reasons why the institution 
believes that the material supervisory deter-
mination is incorrect or should otherwise be 
modified; and 
‘‘(C) include— 
‘‘(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 docu-
ments in the possession of the institution 
that the institution wishes to be consid-
ered. 
‘‘(4) INFORMATION MADE AVAILABLE TO INSTI-
TUTION.—An institution seeking an appeal of a ma-
terial supervisory determination may, not later than 
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7 days after receiving the final examination report, 
request that the Federal financial institutions regu-
latory agency that made the material supervisory de-
termination provide the institution with all examina-
tion and factual information relied upon by the 
agency in making the material supervisory deter-
mination. The agency shall provide that information 
to the institution not later than 14 days after receiv-
ing the request. 
‘‘(c) DETERMINATION; RIGHT TO HEARING.— 
‘‘(1) IN GENERAL.—The Board shall— 
‘‘(A) determine the merits of the appeal on 
the record, including whether the material su-
pervisory determination being appealed should 
be upheld, canceled, or modified; or 
‘‘(B) at the election of the financial institu-
tion, conduct a hearing, which shall take place 
not later than 60 days after the petition for re-
view is received by the Board. 
‘‘(2) RIGHT TO OBTAIN TESTIMONY.—A finan-
cial institution electing for a hearing under para-
graph (1)(B) shall have the right the obtain testi-
mony under oath from agency employees and obtain 
documents and other evidence at the hearing, or in 
advance of the hearing, according to procedures in-
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stituted by the Board consistent with those set forth 
under sections 556 and 557 of title 5, United States 
Code. 
‘‘(3) BASIS
OF
DECISION.—The Board shall 
issue a written decision based upon the record of the 
examination, supplemented by the record established 
at any hearing. 
‘‘(4) STANDARD OF REVIEW.—The Board’s re-
view of a material supervisory determination being 
appealed under this subsection shall be de novo, and 
the Board shall not defer to the opinions of the ex-
aminer or agency, but shall independently determine 
the appropriateness of the agency’s material super-
visory determination based upon the relevant stat-
utes, regulations, other appropriate guidance, and 
the evidentiary record. 
‘‘(d) FINAL DECISION.—A decision by the Board on 
an independent review under this section shall— 
‘‘(1) be made not later than 60 days after the 
record has been closed; and 
‘‘(2) be deemed final agency action and shall 
bind the agency whose supervisory determination 
was the subject of the review and the financial insti-
tution requesting the review. 
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‘‘(e) RIGHT TO JUDICIAL REVIEW.—A financial insti-
tution shall have the right to petition for review of a Board 
determination made under subsection (d) by filing a peti-
tion for review not later than 60 days after the date on 
which the decision is made in the United States Court of 
Appeals for the District of Columbia Circuit or the Circuit 
in which the financial institution is located. 
‘‘(f) REFERRAL OF VIOLATIONS.—If the Board, in 
carrying out this section, determines that a financial insti-
tution has violated a law or regulation, the Board shall 
refer such determination to the applicable Federal finan-
cial institutions regulatory agency. 
‘‘(g) ANNUAL REPORT.— 
‘‘(1) IN GENERAL.—The Board shall report an-
nually to the Committee on Financial Services of the 
House of Representatives, the Committee on Bank-
ing, Housing, and Urban Affairs of the Senate, and 
the Council on actions taken under this section, in-
cluding the types of issues that the Board has re-
viewed and the results of those reviews, including in-
formation on each final determination with respect 
to a material supervisory determination. 
‘‘(2) CONFIDENTIALITY.—In reporting under 
paragraph (1), the Board shall redact information 
about individual financial institutions and any con-
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fidential supervisory information or privileged infor-
mation shared by financial institutions, and shall 
anonymize any un-redacted information that could, 
in the aggregate, identify a financial institution. 
‘‘(h) RETALIATION PROHIBITED.— 
‘‘(1) IN GENERAL.—A Federal financial institu-
tions regulatory agency may not— 
‘‘(A) retaliate against a financial institu-
tion, including service providers, or any institu-
tion-affiliated party, for exercising appellate 
rights under this section; or 
‘‘(B) delay or deny any agency action that 
would benefit a financial institution or any in-
stitution-affiliated party on the basis that an 
appeal under this section is pending under this 
section. 
‘‘(2) RETALIATION.—For purposes of this sub-
section, retaliation includes delaying consideration 
of, or withholding approval of, any request, notice, 
or application that otherwise would have been ap-
proved, but for the exercise of a financial institu-
tion’s rights under this section. 
‘‘(i) RULEMAKING.—The Board shall issue rules to 
establish procedures for hearings described under this sec-
tion, including that— 
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‘‘(1) a financial institution may appear at the 
hearing personally or through counsel; 
‘‘(2) a financial institution may provide an oral 
and written presentation at the hearing; 
‘‘(3) the Board may ask questions of any per-
son participating in the hearing; 
‘‘(4) the hearing may not involve— 
‘‘(A) a cross-examination; or 
‘‘(B) discovery; 
‘‘(5) the hearing shall not be governed by the 
Federal Rules of Evidence; and 
‘‘(6) the Board shall have a verbatim transcript 
of the hearing prepared. 
‘‘(j) SAFETY AND SOUNDNESS EXCEPTION.—The ap-
peal of a material supervisory determination by a financial 
institution under this section shall not affect the authority 
of a Federal financial institutions regulatory agency dur-
ing the pendency of such appeal to enforce the material 
supervisory determination or to take an action based on 
such material supervisory determination, if the Federal fi-
nancial institutions regulatory agency determines that 
such enforcement or action is necessary to ensure the im-
mediate safety and soundness of the financial institu-
tion.’’. 
(e) ADDITIONAL AMENDMENTS.— 
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(1) REGULATOR APPEALS PROCESS, OMBUDS-
MAN, AND ALTERNATIVE DISPUTE RESOLUTION.— 
(A) IN GENERAL.—Section 309 of the Rie-
gle Community Development and Regulatory 
Improvement Act of 1994 (12 U.S.C. 4806) is 
amended— 
(i) in the heading, by striking ‘‘REG-
ULATORY
APPEALS
PROCESS, 
OM-
BUDSMAN,’’ and inserting ‘‘OMBUDS-
MAN’’ (and by conforming the item relat-
ing to such section in the table of contents 
accordingly); 
(ii) by striking subsections (a), (b), 
and (c); 
(iii) by redesignating subsections (d), 
(e), (f), and (g) as subsections (a), (b), (c), 
and (d), respectively; 
(iv) in subsection (b), as so redesig-
nated— 
(I) in paragraph (2)— 
(aa) in subparagraph (B), 
by striking ‘‘and’’ at the end; 
(bb) in subparagraph (C), 
by striking the period and insert-
ing ‘‘; and’’; and 
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(cc) by adding at the end 
the following: 
‘‘(D) ensure that appropriate safeguards 
exist for protecting any party from retaliation 
by any agency for exercising rights under this 
subsection.’’; and 
(II) by adding at the end the fol-
lowing: 
‘‘(6) RETALIATION.—For purposes of this sub-
section, retaliation includes delaying consideration 
of, or withholding approval of, any request, notice, 
or application that otherwise would have been ap-
proved, but for the exercise of a financial institu-
tion’s rights under this section.’’; and 
(v) in paragraph (1)(A) of subsection 
(c), as so redesignated— 
(I) in clause (ii), by striking ‘‘; 
and’’ and inserting a semicolon; 
(II) in clause (iii), by striking ‘‘; 
and’’ and inserting a semicolon; and 
(III) by adding at the end the 
following: 
‘‘(iv) any issue specifically listed in an 
exam report as a matter requiring atten-
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tion by the institution’s management or 
board of directors; and 
‘‘(v) any suspension or removal of an 
institution’s status as eligible for expedited 
processing of applications, requests, no-
tices, or filings on the grounds of a super-
visory or compliance concern, regardless of 
whether that concern has been cited as a 
basis for a material supervisory determina-
tion or matter requiring attention in an ex-
amination report, provided that the con-
duct at issue did not involve violation of 
any criminal law; and’’. 
(B) EFFECT.—Nothing in this subsection 
affects the authority of an appropriate Federal 
banking agency or the National Credit Union 
Administration Board to take enforcement or 
other supervisory action. 
(2) FEDERAL
CREDIT
UNION
ACT.—Section 
205(j) of the Federal Credit Union Act (12 U.S.C. 
1785(j)) is amended by inserting ‘‘the Bureau of 
Consumer Financial Protection,’’ before ‘‘the Ad-
ministration’’ each place that term appears. 
(3) FEDERAL FINANCIAL INSTITUTIONS EXAM-
INATION COUNCIL ACT.—The Federal Financial In-
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stitutions Examination Council Act of 1978 (12 
U.S.C. 3301 et seq.) is amended— 
(A) in section 1003 (12 U.S.C. 3302)— 
(i) by striking paragraph (1) and in-
serting the following: 
‘‘(1) the term ‘Federal financial institutions 
regulatory agencies’— 
‘‘(A) means the Office of the Comptroller 
of the Currency, the Board of Governors of the 
Federal Reserve System, the Federal Deposit 
Insurance Corporation, and the National Credit 
Union Administration; and 
‘‘(B) includes the Bureau of Consumer Fi-
nancial Protection for purposes of sections 
1012 through 1015;’’; and 
(ii) in paragraph (3), by striking the 
semicolon at the end and inserting ‘‘, ex-
cept that for purposes of sections 1013 
through 1016, the term ‘financial institu-
tion’ does not include a credit union that 
is not an insured credit union;’’; 
(B) in section 1004(a)(4) (12 U.S.C. 
3303), by striking ‘‘Consumer Financial Protec-
tion Bureau’’ and inserting ‘‘Bureau of Con-
sumer Financial Protection’’; and 
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(C) in section 1005 (12 U.S.C. 3304)— 
(i) by striking ‘‘One-fifth’’ and insert-
ing ‘‘One-fourth’’; and 
(ii) by inserting ‘‘described under sec-
tion 1003(1)(A)’’ after ‘‘agencies’’. 
SEC. 303. SUPERVISORY MODIFICATIONS FOR APPRO-
PRIATE RISK-BASED TESTING. 
(a) EXAMINATION RELIEF
FOR CERTAIN WELL 
MANAGED AND WELL CAPITALIZED FINANCIAL INSTITU-
TIONS.— 
(1) INSURED DEPOSITORY INSTITUTIONS.—Sec-
tion 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
RELIEF
FOR
CERTAIN 
WELL MANAGED AND WELL CAPITALIZED INSURED 
DEPOSITORY INSTITUTIONS.— 
‘‘(A) IN
GENERAL.—The following shall 
apply to a well managed and well capitalized in-
sured 
depository 
institution 
with 
$6,000,000,000 or less in consolidated assets: 
‘‘(i) 
ALTERNATING
LIMITED-SCOPE 
EXAMINATIONS.—After an insured deposi-
tory institution receives a full-scope, on- 
site examination from the appropriate Fed-
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eral banking agency, the next examination 
of the insured depository institution by the 
appropriate Federal banking agency shall 
be a limited-scope examination, as deter-
mined by the appropriate Federal banking 
agency. 
‘‘(ii) COMBINED
EXAMINATIONS.—If 
an insured depository institution is other-
wise subject to separate safety and sound-
ness examinations, consumer compliance 
examinations, and information technology 
and cybersecurity examinations, the appro-
priate Federal banking agency shall, upon 
request of the insured depository institu-
tion, combine two or three such examina-
tions, as specified by the insured deposi-
tory institution, and carry them out at the 
same time. 
‘‘(B) 
EXCEPTION.—Subparagraph 
(A) 
shall not apply to an insured depository institu-
tion if— 
‘‘(i) the insured depository institution 
is currently subject to a formal enforce-
ment proceeding or order by the Corpora-
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tion or the appropriate Federal banking 
agency; or 
‘‘(ii) a person acquired control of the 
insured depository institution since the 
most recent full-scope, on-site examination 
of the insured depository institution from 
the appropriate Federal banking agency. 
‘‘(C) RULEMAKING.—Not later than 12 
months after the date of enactment of this 
paragraph, the Federal banking agencies shall 
issue rules to carry out subparagraph (A), in-
cluding, with respect to an insured depository 
institution described under subparagraph (A), 
to— 
‘‘(i) establish procedures for the lim-
ited-scope examinations described in sub-
paragraph (A)(i); 
‘‘(ii) establish procedures for review-
ing insured depository institutions de-
scribed under subparagraph (A), that— 
‘‘(I) experience material changes 
in financial condition or operational 
risk profile between scheduled exami-
nations; or 
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‘‘(II) have failed to comply with 
Federal or State banking laws and 
regulations; and 
‘‘(iii) balance the goals of streamlining 
the examination cycle for individual in-
sured depository institutions and reducing 
unnecessary 
regulatory 
burdens 
while 
maintaining sufficient oversight to ensure 
the continued safety and soundness of the 
insured depository institutions and compli-
ance with all applicable laws and regula-
tions. 
‘‘(D) RULE OF CONSTRUCTION.—Nothing 
in this paragraph may be construed to limit the 
authority of a Federal banking agency to con-
duct off-site monitoring, targeted reviews, or 
additional full-scope, on-site examinations of an 
insured depository institution if the Federal 
banking agency determines such monitoring, re-
views, or examinations are necessary to ensure 
safety and soundness or compliance with appli-
cable laws. 
‘‘(E) DEFINITIONS.—In this paragraph: 
‘‘(i) CONSUMER
COMPLIANCE
EXAM-
INATION.—The term ‘consumer compliance 
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examination’ means an examination to as-
sess compliance with the requirements of 
Federal consumer financial law (as such 
term is defined in section 1002 of the Con-
sumer Financial Protection Act of 2010). 
‘‘(ii) WELL CAPITALIZED.—The term 
‘well capitalized’ has the meaning given 
that term in section 38(b). 
‘‘(iii) WELL MANAGED.—With respect 
to an insured depository institution, the 
term ‘well managed’ means that, when the 
institution was most recently examined by 
the appropriate Federal banking agency, 
the institution was found to be well man-
aged, and the institution’s composite condi-
tion was found to be satisfactory or out-
standing.’’. 
(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) EXAMINATION RELIEF
FOR CERTAIN WELL 
MANAGED
AND WELL CAPITALIZED INSURED CREDIT 
UNIONS.— 
‘‘(1) IN GENERAL.—The following shall apply to 
a well managed and well capitalized insured credit 
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union with $6,000,000,000 or less in consolidated 
assets: 
‘‘(A) ALTERNATING
LIMITED-SCOPE
EX-
AMINATIONS.—After an insured credit union re-
ceives a full-scope, on-site examination from the 
National Credit Union Administration, the next 
examination of the insured credit union by the 
National Credit Union Administration shall be 
a limited-scope examination, as determined by 
the National Credit Union Administration. 
‘‘(B) COMBINED
EXAMINATIONS.—If an 
insured credit union is otherwise subject to sep-
arate safety and soundness examinations, con-
sumer compliance examinations, and informa-
tion technology and cybersecurity examinations, 
the National Credit Union Administration shall, 
upon request of the insured credit union, com-
bine two or three such examinations, as speci-
fied by the insured credit union, and carry them 
out at the same time. 
‘‘(2) EXCEPTION.—Paragraph (1) shall not 
apply to an insured credit union if the insured credit 
union is currently subject to a formal enforcement 
proceeding or order by the National Credit Union 
Administration. 
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‘‘(3) RULEMAKING.—Not later than 12 months 
after the date of enactment of this subsection, the 
National Credit Union Administration shall issue 
rules to carry out paragraph (1), including, with re-
spect to an insured credit union described under 
paragraph (1), to— 
‘‘(A) establish procedures for the limited- 
scope examinations described in paragraph 
(1)(A); 
‘‘(B) establish procedures for reviewing in-
sured credit unions that— 
‘‘(i) experience material changes in fi-
nancial condition or operational risk profile 
between scheduled examinations; or 
‘‘(ii) have failed to comply with Fed-
eral or State banking laws and regulations; 
and 
‘‘(C) balance the goals of streamlining the 
examination cycle for individual insured credit 
unions and reducing unnecessary regulatory 
burdens while maintaining sufficient oversight 
to ensure the continued safety and soundness of 
the insured credit unions and compliance with 
all applicable laws and regulations. 
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‘‘(4) RULE
OF
CONSTRUCTION.—Nothing in 
this subsection may be construed to limit the author-
ity of the National Credit Union Administration to 
conduct off-site monitoring, targeted reviews, or ad-
ditional full-scope, on-site examinations of an in-
sured credit union if the National Credit Union Ad-
ministration determines such monitoring, reviews, or 
examinations are necessary to ensure safety and 
soundness or compliance with applicable laws. 
‘‘(5) DEFINITIONS.—In this paragraph: 
‘‘(A) CONSUMER
COMPLIANCE
EXAMINA-
TION.—The term ‘consumer compliance exam-
ination’ means an examination to assess compli-
ance with the requirements of Federal con-
sumer financial law (as such term is defined in 
section 1002 of the Consumer Financial Protec-
tion Act of 2010). 
‘‘(B) WELL CAPITALIZED.—The term ‘well 
capitalized’ has the meaning given that term in 
section 216(c). 
‘‘(C) WELL
MANAGED.—With respect to 
an insured credit union, the term ‘well man-
aged’ means that, when the credit union was 
most recently examined by the National Credit 
Union Administration, the credit union was 
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found to be well managed, and the credit 
union’s composite condition was found to be 
satisfactory or outstanding.’’. 
(b) EXAMINATION PRACTICES.— 
(1) INSURED DEPOSITORY INSTITUTIONS.—Sec-
tion 10(d) of the Federal Deposit Insurance Act (12 
U.S.C. 1820(d)), as amended by subsection (a)(1), 
is further amended by adding at the end the fol-
lowing: 
‘‘(12) EXAMINATION PRACTICES.—With respect 
to on-site examination of an insured depository insti-
tution with less than $6,000,000,000 in total assets, 
the appropriate Federal banking agency shall— 
‘‘(A) ensure the examination is led by, to 
the maximum extent practicable, an examiner 
with significant experience as an examiner; 
‘‘(B) make every effort, to the maximum 
extent practicable, to minimize the number of 
examiners utilized and the amount of time 
spent at the institution to carry out the exam-
ination; 
‘‘(C) make every effort, to the maximum 
extent practicable, to schedule the examination 
at a time that is convenient for the institution; 
and 
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‘‘(D) to the maximum extent practicable, 
give the institution advance notice of issues ex-
pected to be covered in the examination. 
‘‘(13) REPORT.—In its annual report to Con-
gress, each Federal banking agency shall include— 
‘‘(A) information on how the agency is 
complying with paragraphs (11) and (12); and 
‘‘(B) aggregate data summarizing the 
agency’s examination practices with respect to 
insured depository institutions with less than 
$6,000,000,000 in total assets, including— 
‘‘(i) the average experience of exam-
iners, including the average number of 
years of examiner experience of those who 
lead on-site examinations; 
‘‘(ii) the average number of examiners 
utilized; and 
‘‘(iii) the average amount of time the 
agency spends visiting such institutions for 
on-site examinations.’’. 
(2) INSURED CREDIT UNIONS.—Section 204 of 
the Federal Credit Union Act (12 U.S.C. 1784), as 
amended by subsection (a)(2), is further amended by 
adding at the end the following: 
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‘‘(i) EXAMINATION PRACTICES.—With respect to on- 
site examination of an insured credit union with less than 
$6,000,000,000 in total assets, the National Credit Union 
Administration shall— 
‘‘(1) ensure the examination is led by, to the 
maximum extent practicable, an examiner with sig-
nificant experience as an examiner; 
‘‘(2) make every effort, to the maximum extent 
practicable, to minimize the number of examiners 
utilized and the amount of time spent at the credit 
union to carry out the examination; 
‘‘(3) make every effort, to the maximum extent 
practicable, to schedule the examination at a time 
that is convenient for the credit union; and 
‘‘(4) to the maximum extent practicable, give 
the credit union advance notice of issues expected to 
be covered in the examination. 
‘‘(j) REPORT.—In its annual report to Congress, the 
National Credit Union Administration shall include— 
‘‘(1) information on how the Administration is 
complying with subsections (h) and (i); and 
‘‘(2) aggregate data summarizing the Adminis-
tration’s examination practices with respect to in-
sured credit unions with less than $6,000,000,000 in 
total assets, including— 
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‘‘(A) the average experience of examiners, 
including the average number of years of exam-
iner experience of those who lead on-site exami-
nations; 
‘‘(B) the average number of examiners uti-
lized; and 
‘‘(C) the average amount of time the Ad-
ministration spends visiting such credit unions 
for on-site examinations.’’. 
SEC. 304. TAILORED REGULATORY UPDATES FOR SUPER-
VISORY TESTING. 
Section 10(d) of the Federal Deposit Insurance Act 
(12 U.S.C. 1820(d)) is amended— 
(1) 
in 
paragraph 
(4)(A), 
by 
striking 
‘‘$3,000,000,000’’ and inserting ‘‘$6,000,000,000’’; 
and 
(2) 
in 
paragraph 
(10), 
by 
striking 
‘‘$3,000,000,000’’ and inserting ‘‘$6,000,000,000’’. 
SEC. 305. STRESS TESTING ACCOUNTABILITY AND TRANS-
PARENCY. 
(a) RULEMAKING RELATED
TO STRESS CAPITAL 
BUFFER REQUIREMENTS.— 
(1) 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 
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section referred to as the ‘‘Board’’) shall issue a 
rule— 
(A) establishing the models, assumptions, 
formulas, and other decisional methodologies 
that are used to conduct any stress test pursu-
ant to section 165(i) of the Financial Stability 
Act of 2010 (12 U.S.C. 5365(i)), including any 
such test that is used to determine any compo-
nent or subcomponent of the stress capital buff-
er requirement for a covered company; and 
(B) to determine, where the Board has su-
pervisory stress test results from two or more 
periodic analyses of a covered company, the cov-
ered company’s stress capital buffer require-
ment on the basis of supervisory stress test re-
sults from two or more periodic analyses of that 
covered company. 
(2) CHANGES.—The Board may only make ma-
terial changes to the methodologies established in 
the rule issued under paragraph (1)(A) through no-
tice and comment rulemaking. 
(3) NO DOUBLE-COUNT.—The Board shall en-
sure no double-count of capital requirements for the 
same risks in the stress capital buffer requirement 
and the risk-based capital requirements. 
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(4) DEFINITIONS.—In this subsection: 
(A) COVERED COMPANY.—The term ‘‘cov-
ered company’’ means a company to which sec-
tion 225.8 of title 12, Code of Federal Regula-
tions, or section 238.170 of title 12, Code of 
Federal Regulations, applies. 
(B) STRESS
CAPITAL
BUFFER
REQUIRE-
MENT.—The term ‘‘stress capital buffer re-
quirement’’ has the meaning given that term 
under— 
(i) section 225.8(d) of title 12, Code 
of Federal Regulations; and 
(ii) section 238.170(d) of title 12, 
Code of Federal Regulations. 
(5) RULE OF CONSTRUCTION.—Nothing in this 
subsection may be construed to imply that the 
Board is required to establish a stress capital buffer 
requirement for any bank holding company or any 
other company regulated by the Board. 
(b) RULEMAKING RELATING TO STRESS TESTING.— 
(1) IN GENERAL.—Beginning in the first cal-
endar year beginning after the date of the enactment 
of this section, the Board shall, not less than 60 
days before conducting a stress test pursuant to sec-
tion 165(i) of the Financial Stability Act of 2010, 
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publicly disclose each scenario to be used in such 
stress test. 
(2) PROHIBITION.—The Board may not, by rule 
or otherwise, subject any nonbank financial company 
or bank holding company to a climate-related stress 
test using the authority provided in section 165(i) of 
the Financial Stability Act of 2010. 
(c) GAO REPORT.— 
(1) IN GENERAL.—The Comptroller General of 
the United States shall, every 3 years, conduct a 
study and submit a report to the Congress with re-
spect 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. 
(2) CONTENTS.—The report submitted to the 
Congress under paragraph (1) shall consider the ef-
fectiveness of the stress tests in evaluating— 
(A) the safety and soundness of the 
nonbank financial companies and bank holding 
companies subjected to stress tests; and 
(B) the stability of the United States fi-
nancial system. 
SEC. 306. COMMUNITY BANK REPRESENTATION. 
(a) FEDERAL RESERVE ACT.—Section 10 of the Fed-
eral Reserve Act is amended— 
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(1) in the first undesignated paragraph (12 
U.S.C. 
241), 
by 
striking 
‘‘having 
less 
than 
$10,000,000,000 in total assets’’; 
(2) in the second undesignated paragraph (12 
U.S.C. 242), by inserting after ‘‘regulation of such 
firms.’’ the following: ‘‘The Chairman shall select 
one member of the Board with demonstrated pri-
mary experience working in or supervising commu-
nity banks to, in consultation with the Vice Chair-
man for Supervision and any other member of the 
Board with demonstrated primary experience work-
ing in or supervising community banks, develop pol-
icy recommendations for the Board regarding super-
vision and regulation of banking organizations su-
pervised 
by 
the 
Board 
having 
less 
than 
$17,000,000,000 in total assets, and to oversee the 
supervision and regulation of such banking organiza-
tions in consultation with the Vice Chairman for Su-
pervision and any other member of the Board with 
demonstrated primary experience working in or su-
pervising community banks.’’; 
(3) in paragraph (12) (12 U.S.C. 247b)— 
(A) by striking ‘‘The Vice Chairman for 
Supervision’’ and inserting the following: 
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(4) by adding at the end the following: 
‘‘(13) MEMBER OF THE BOARD FOR COMMU-
NITY BANKS ANNUAL THRESHOLD ADJUSTMENT.— 
‘‘(A) IN GENERAL.—At the end of each 
year for which the nominal gross domestic prod-
uct of the United States increases (a ‘covered 
year’), the Board shall adjust each dollar figure 
described in the second undesignated paragraph 
of this section, paragraph (12)(B) of this sec-
tion, and section 1004(a)(3) of the Federal Fi-
nancial Institutions Examination Council Act of 
1978 by a percentage equal to the percentage 
increase (if any) between— 
‘‘(i) the nominal gross domestic prod-
uct of the United States for the year, dur-
ing the preceding 5 years, with respect to 
which the nominal gross domestic product 
of the United States was the highest; and 
‘‘(ii) the nominal gross domestic prod-
uct of the United States for the covered 
year. 
‘‘(B) DETERMINATION
OF
GDP.—In this 
paragraph, the Board shall use nominal gross 
domestic product statistics determined by the 
Bureau of Economic Analysis.’’. 
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(b) FEDERAL FINANCIAL INSTITUTIONS EXAMINA-
TION COUNCIL ACT OF 1978.—Section 1004(a)(3) of the 
Federal Financial Institutions Examination Council Act of 
1978 (12 U.S.C. 3303(a)(3)) is amended by adding at the 
end the following: ‘‘and such Governor shall consult with 
the Governor with demonstrated primary experience work-
ing in or supervising community banks selected by the 
Chairman of the Board to develop policy recommendations 
for the Board regarding supervision and regulation of 
banking organizations supervised by the Board having less 
than $17,000,000,000 in total assets, and to oversee the 
supervision and regulation of such banking organiza-
tions,’’. 
SEC. 307. FINANCIAL INTEGRITY AND REGULATION MAN-
AGEMENT. 
(a) FINDINGS.—Congress finds that— 
(1) the primary objective of financial regulation 
and supervision by the Federal banking agencies is 
to promote safety and soundness of depository insti-
tutions; 
(2) all federally legal businesses and law-abid-
ing citizens regardless of political ideology should 
have equal opportunity to obtain financial services 
and should not face unlawful discrimination in ob-
taining such services; 
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(3) financial service providers are private enti-
ties entitled to provide services to whichever cus-
tomers they so choose, provided that those decisions 
do not violate the law; 
(4) financial service providers should strive to 
ensure that all business decisions are based on fac-
tors free from unlawful prejudice or political influ-
ence; 
(5) the use of reputational risk in supervisory 
frameworks encourages Federal banking agencies to 
regulate depository institutions based on the subjec-
tive view of negative publicity and provides cover for 
the agencies to implement their own political agenda 
unrelated to the safety and soundness of a deposi-
tory institution; 
(6) Federal banking agencies have in fact used 
reputational risk to limit access of federally legal 
businesses and law-abiding citizens to financial serv-
ices in 2018 when the Federal Deposit Insurance 
Corporation acknowledged that the agency used 
reputational risk reviews to limit access to financial 
services by certain industries, commonly known as 
‘‘Operation Choke Point’’; and 
(7) reputational risk does not appear in any 
statute and is an unnecessary and improper use of 
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supervisory authority that does not contribute to the 
safety and soundness of the financial system. 
(b) DEFINITIONS.—In this section: 
(1) DEPOSITORY INSTITUTION.—The term ‘‘de-
pository institution’’— 
(A) has the meaning given the term in sec-
tion 3 of the Federal Deposit Insurance Act (12 
U.S.C. 1813); 
(B) includes a depository institution hold-
ing company, as such term is defined in section 
3 of the Federal Deposit Insurance Act (12 
U.S.C. 1813); and 
(C) includes an insured credit union, as 
such term is defined in section 101 of the Fed-
eral Credit Union Act (12 U.S.C. 1752). 
(2) FEDERAL
BANKING
AGENCY.—The term 
‘‘Federal banking agency’’— 
(A) has the meaning given the term in sec-
tion 3 of the Federal Deposit Insurance Act (12 
U.S.C. 1813); and 
(B) includes— 
(i) the National Credit Union Admin-
istration; and 
(ii) the Bureau of Consumer Financial 
Protection. 
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(3) FOREIGN TERRORIST ORGANIZATION.—The 
term ‘‘foreign terrorist organization’’ means a for-
eign organization that is designated by the Secretary 
of State in accordance with section 219 of the Immi-
gration and Nationality Act (8 U.S.C. 1189). 
(4) 
REPUTATIONAL
RISK.—The 
term 
‘‘reputational risk’’ means the potential that nega-
tive publicity or negative public opinion regarding a 
depository institution’s business practices, whether 
true or not, will cause a decline in confidence in the 
institution or a decline in the customer base, costly 
litigation, or revenue reductions or otherwise ad-
versely impact the depository institution. The pre-
vious sentence does not apply to negative publicity 
or negative public opinion regarding an institution’s 
business practices where such practices involve un-
lawful transactions in connection with state sponsors 
of terrorism or foreign terrorist organizations. 
(5) STATE
SPONSORS
OF
TERRORISM.—The 
term ‘‘state sponsors of terrorism’’ means a country, 
the government of which has been determined by the 
Secretary of State to have repeatedly provided sup-
port for acts of international terrorism, for purposes 
of— 
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(A) section 1754(c)(1)(A)(i) of the Export 
Control Reform Act of 2018 (50 U.S.C. 
4813(c)(1)(A)(i)); 
(B) section 620A of the Foreign Assistance 
Act of 1961 (22 U.S.C. 2371); 
(C) section 40(d) of the Arms Export Con-
trol Act (22 U.S.C. 2780(d)); or 
(D) any other provision of law. 
(c) REMOVAL OF REPUTATIONAL RISK AS A CONSID-
ERATION IN THE SUPERVISION OF DEPOSITORY INSTITU-
TIONS.—Each Federal banking agency shall remove from 
any guidance, rule, examination manual, or similar docu-
ment established by the agency any reference to 
reputational risk, or any term substantially similar, re-
garding the supervision of depository institutions such 
that reputational risk, or any term substantially similar, 
is no longer taken into consideration by the Federal bank-
ing agency when examining and supervising a depository 
institution. 
(d) PROHIBITION.—No Federal banking agency may 
engage in any activity concerning or related to the regula-
tion, supervision, or examination of the reputational risk, 
or any term substantially similar, or the management 
thereof, of a depository institution, including— 
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any term substantially similar, or the management 
thereof, of a depository institution. 
(e) REPORTS.—Not later than 180 days after the 
date of enactment of this Act, each Federal banking agen-
cy shall submit to the Committee on Banking, Housing, 
and Urban Affairs of the Senate and the Committee on 
Financial Services of the House of Representatives a re-
port that— 
(1) confirms implementation of this section; and 
(2) describes any changes made to internal poli-
cies as a result of this section. 
TITLE 
IV—REGULATORY 
AC-
COUNTABILITY AND TRANS-
PARENCY 
SEC. 401. FDIC BOARD ACCOUNTABILITY. 
Section 2 of the Federal Deposit Insurance Act (12 
U.S.C. 1812) is amended— 
(1) in subsection (a)— 
(A) in paragraph (1)— 
(i) in subparagraph (A), by adding 
‘‘and’’ at the end; and 
(ii) by striking subparagraphs (B) and 
(C) and inserting the following: 
‘‘(B) 4 of whom shall be appointed by the 
President, by and with the advice and consent 
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of the Senate, from among individuals who are 
citizens of the United States, 1 of whom shall 
have State bank supervisory experience, and 
separately 1 of whom shall have demonstrated 
primary experience working in or supervising 
depository 
institutions 
having 
less 
than 
$17,000,000,000 in total assets.’’; and 
(B) by adding at the end the following: 
‘‘(3) NON-VOTING STATUS OF THE DIRECTOR 
OF THE BUREAU OF CONSUMER FINANCIAL PROTEC-
TION.—The Director of the Bureau of Consumer Fi-
nancial Protection shall serve as a non-voting ob-
server to the Board of Directors of the Corpora-
tion.’’; 
(2) in subsection (c)— 
(A) in paragraph (1), by adding at the end 
the following: ‘‘No individual may be appointed 
as a member for more than two terms.’’; and 
(B) by adding at the end the following: 
‘‘(4) MAXIMUM
LENGTH
OF
SERVICE.—Not-
withstanding any other provision of this Act, no per-
son shall serve as a member for more than twelve 
years in total.’’; 
(3) in subsection (d)(2)— 
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(A) by striking ‘‘Consumer Financial Pro-
tection Bureau’’ each place such term appears 
and inserting ‘‘Bureau of Consumer Financial 
Protection’’; and 
(B) by inserting ‘‘or observer, as the case 
may be,’’ after ‘‘member’’; and 
(4) in subsection (f)(2), by striking ‘‘or of the 
Consumer Financial Protection Bureau’’. 
SEC. 402. STOP AGENCY FIAT ENFORCEMENT OF GUID-
ANCE. 
(a) IN GENERAL.—The head of each financial agency 
shall include a guidance clarity statement as described in 
subsection (b) on any guidance issued by that financial 
agency on and after the date of the enactment of this Act. 
(b) GUIDANCE CLARITY STATEMENT.—A guidance 
clarity statement required under subsection (a) shall be 
displayed prominently on the first page of the document 
and shall include the following: ‘‘This guidance does not 
have the force and effect of law and therefore does not 
establish any rights or obligations for any person and is 
not binding on the agency or the public. If this guidance 
suggests how regulated entities may comply with applica-
ble statutes or regulations, noncompliance with this guid-
ance does not conclusively establish a violation of applica-
ble law.’’. 
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(c) DEFINITIONS.—In this section: 
(1) FINANCIAL AGENCY.—The term ‘‘financial 
agency’’ means the following: 
(A) The Bureau of Consumer Financial 
Protection. 
(B) The Department of Housing and 
Urban Development. 
(C) The Department of the Treasury. 
(D) The Federal Deposit Insurance Cor-
poration. 
(E) The Federal Housing Finance Agency. 
(F) The Board of Governors of the Federal 
Reserve System. 
(G) The National Credit Union Adminis-
tration. 
(H) The Office of the Comptroller of the 
Currency. 
(I) The Securities and Exchange Commis-
sion. 
(2) GUIDANCE.—The term ‘‘guidance’’ means a 
financial agency statement of general applicability, 
intended to have a future effect on the behavior of 
regulated parties, that sets forth a policy on a statu-
tory, regulatory, or technical issue, or an interpreta-
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tion of a statute or regulation, but does not in-
clude— 
(A) a rule promulgated pursuant to notice 
and comment under section 553 of title 5, 
United States Code; 
(B) a rule exempt from rulemaking re-
quirements under section 553(a) of title 5, 
United States Code; 
(C) a rule of financial agency organization, 
procedure, or practice under section 553(b)(A) 
of title 5, United States Code; 
(D) a decision of a financial agency adju-
dication under section 554 of title 5, United 
States Code, or any similar statutory provision; 
(E) internal guidance directed to the 
issuing financial agency or other agency that is 
not intended to have a substantial future effect 
on the behavior of regulated parties; or 
(F) internal executive branch legal advice 
or legal opinions addressed to executive branch 
officials. 
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SEC. 
403. 
REGULATORY 
EFFICIENCY, 
VERIFICATION, 
ITEMIZATION, AND ENHANCED WORKFLOW. 
Section 2222 of the Economic Growth and Regu-
latory Paperwork Reduction Act of 1996 (12 U.S.C. 3311) 
is amended— 
(1) by striking ‘‘appropriate Federal banking 
agency’’ each place such term appears and inserting 
‘‘Federal financial institutions regulatory agency’’; 
(2) by striking ‘‘appropriate Federal banking 
agencies’’ each place such term appears and insert-
ing ‘‘Federal financial institutions regulatory agen-
cies’’; 
(3) in subsection (a)— 
(A) by striking ‘‘represented on the Coun-
cil’’; and 
(B) by striking ‘‘once every 10 years’’ and 
inserting ‘‘once every 7 years’’; 
(4) in subsection (b)— 
(A) by redesignating paragraphs (1) and 
(2) as subparagraphs (A) and (B), respectively 
(and adjusting the margins accordingly); 
(B) by striking ‘‘In conducting’’ and in-
serting the following: 
‘‘(1) SOLICITATION OF PUBLIC COMMENT.—In 
conducting’’; and 
(C) by adding at the end the following: 
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