Title: Promoting Diversity and Inclusion in Banking Act of 2021
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.

[Congressional Bills 117th Congress]
[From the U.S. Government Publishing Office]
[H.R. 2516 Introduced in House (IH)]

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117th CONGRESS
  1st Session
                                H. R. 2516

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.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                             April 14, 2021

Mr. Green of Texas introduced the following bill; which was referred to 
                  the Committee on Financial Services

_______________________________________________________________________

                                 A BILL


 
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 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 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 a minority depository institution 
(as defined under section 308(b) of the Financial Institutions Reform, 
Recovery, and Enforcement Act of 1989), the Board of Governors, the 
Comptroller of the Currency, the Corporation, and the National Credit 
Union Administration Board shall--
            ``(1) assign such institution the highest rating with 
        respect to the diversity and inclusion component described 
        under subsection (a); and
            ``(2) exempt such institution from any examination 
        procedures related to the diversity and inclusion component 
        described under subsection (a).''.
    (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.''.
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