Promoting Diversity and Inclusion in Banking Act of 2021
Bill: H.R.2516 | Sponsor: Rep. Green, Al (D-TX)
Policy area: Finance and Financial Sector

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

To amend the Dodd-Frank Wall Street Reform and Consumer Protection Act 
   to require Federal banking regulators to include a diversity and 
   inclusion component in the Uniform Financial Institutions Rating 
                    System, and for other purposes.


 


    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Promoting Diversity and Inclusion in 
Banking Act of 2021''.

SEC. 2. DIVERSITY AND INCLUSION RATINGS.

    (a) In General.--The Dodd-Frank Wall Street Reform and Consumer 
Protection Act (12 U.S.C. 5301 et seq.) is amended by inserting after 
section 342 the following:

``SEC. 342A. DIVERSITY AND INCLUSION RATINGS.

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

``Sec. 342A. Diversity and inclusion ratings.''.
                                                 Union Calendar No. 269

117th CONGRESS

  2d Session

                               H. R. 2516

                          [Report No. 117-355]

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