IB 
Union Calendar No. 64 
119TH CONGRESS 
1ST SESSION 
H. R. 478 
[Report No. 119–90] 
To require the appropriate Federal banking agencies to establish a 3-year 
phase-in period for de novo financial institutions to comply with Federal 
capital standards, to provide relief for de novo rural community banks, 
and for other purposes. 
IN THE HOUSE OF REPRESENTATIVES 
JANUARY 16, 2025 
Mr. BARR introduced the following bill; which was referred to the Committee 
on Financial Services 
MAY 6, 2025 
Additional sponsors: Mr. MEUSER, Mr. DOWNING, Mr. LOUDERMILK, Ms. DE 
LA CRUZ, Mr. CLINE, Mr. ELLZEY, Mr. SCOTT FRANKLIN of Florida, 
Mr. HUIZENGA, Mr. KNOTT, Mr. TIMMONS, Mr. DUNN of Florida, Mr. 
WILLIAMS of Texas, Mr. FLOOD, Mr. PALMER, Mr. DONALDS, Mr. ROSE, 
Mr. MCDOWELL, Mr. ALFORD, Mr. SCHMIDT, Mr. FITZGERALD, Mr. 
SHREVE, Mr. MOORE of North Carolina, Mr. LAWLER, and Mr. SESSIONS 
MAY 6, 2025 
Reported with an amendment, committed to the Committee of the Whole 
House on the State of the Union, and ordered to be printed 
[Strike out all after the enacting clause and insert the part printed in italic] 
[For text of introduced bill, see copy of bill as introduced on January 16, 2025] 
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A BILL 
To require the appropriate Federal banking agencies to es-
tablish a 3-year phase-in period for de novo financial 
institutions to comply with Federal capital standards, 
to provide relief for de novo rural community banks, 
and for other purposes. 
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proved by the appropriate Federal banking agency by sub-
mitting a request to such agency pursuant to this section. 
(b) REVIEW OF CHANGES.—The appropriate Federal 
banking agency shall, not later than the end of the 30-day 
period beginning on the receipt of a request under sub-
section (a)— 
(1) approve, conditionally approve, or deny such 
request; and 
(2) notify the applicant of such decision and, if 
the agency denies the request— 
(A) provide the applicant with the reason 
for such denial; and 
(B) suggest changes to the request that, if 
adopted, would allow the agency to approve such 
request. 
(c) RESULT OF FAILURE TO ACT.—If an appropriate 
Federal banking agency fails to approve or deny a request 
within the 30-day period required under subsection (b), 
such request shall be deemed to be approved. 
SEC. 4. RURAL COMMUNITY DEPOSITORY INSTITUTION LE-
VERAGE RATIO. 
(a) IN GENERAL.—During the 3-year period beginning 
on the date on which a rural depository institution became 
an insured depository institution, the Community Bank 
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Leverage Ratio for the rural community bank shall be 8 
percent. 
(b) PHASE-IN
AUTHORITY.—The Federal banking 
agencies shall issue rules to phase-in the Community Bank 
Leverage Ratio described under subsection (a) with respect 
to a rural depository institution by setting lower Commu-
nity Bank Leverage Ratio percentages during the first 2 
years of the 3-year period described under subsection (a). 
(c) DEFINITIONS.—In this section: 
(1) COMMUNITY
BANK
LEVERAGE
RATIO.—The 
term ‘‘Community Bank Leverage Ratio’’ has the 
meaning given that term under section 201(a) of the 
Economic Growth, Regulatory Relief, and Consumer 
Protection Act (12 U.S.C. 5371 note). 
(2) RURAL DEPOSITORY INSTITUTION.—The term 
‘‘rural depository institution’’ means a depository in-
stitution— 
(A) with total consolidated assets of less 
than $10,000,000,000; and 
(B) located in a rural area, as defined 
under section 1026.35(b)(iv)(A) of title 12, Code 
of Federal Regulations. 
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SEC. 5. AGRICULTURAL LOAN AUTHORITY FOR FEDERAL 
SAVINGS ASSOCIATIONS. 
Section 5(c) of the Home Owners’ Loan Act (12 U.S.C. 
1464(c)) is amended— 
(1) in paragraph (1), by adding at the end the 
following: 
‘‘(V) AGRICULTURAL
LOANS.—Secured or 
unsecured loans for agricultural purposes.’’; and 
(2) in paragraph (2)(A), by striking ‘‘business, 
or agricultural’’ and inserting ‘‘or business’’. 
SEC. 6. STUDY ON DE NOVO INSURED DEPOSITORY INSTI-
TUTIONS. 
(a) STUDY.—The Federal banking agencies shall, 
jointly, carry out a study on— 
(1) the principal causes for the low number of de 
novo insured depository institutions in the 10-year 
period ending on the date of enactment of this Act; 
and 
(2) ways to promote more de novo insured depos-
itory institutions in areas currently underserved by 
insured depository institutions. 
(b) REPORT TO CONGRESS.—Not later than the end 
of the 1-year period beginning on the date of enactment of 
this Act, the Federal banking agencies shall, jointly, issue 
a report to Congress containing all findings and determina-
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tions made in carrying out the study required under sub-
section (a). 
SEC. 7. DEFINITIONS. 
In this Act, the terms ‘‘appropriate Federal banking 
agency’’, ‘‘depository institution’’, ‘‘depository institution 
holding company’’, ‘‘Federal banking agency’’, and ‘‘in-
sured depository institution’’ have the meaning given those 
terms, respectively, under section 3 of the Federal Deposit 
Insurance Act. 
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Union Calendar No. 64 
119TH CONGRESS 
1ST SESSION 
H. R. 478 
[Report No. 119–90] 
A BILL 
To require the appropriate Federal banking agen-
cies to establish a 3-year phase-in period for de 
novo financial institutions to comply with Federal 
capital standards, to provide relief for de novo 
rural community banks, and for other purposes. 
MAY 6, 2025 
Reported with an amendment, committed to the Com-
mittee of the Whole House on the State of the Union, 
and ordered to be printed 
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