Ensuring Diversity in Community Banking Act

Bill: 116-hr-5322
Sponsor: Rep. Meeks, Gregory W. [D-NY-5]
Introduced: 2019-12-05 in the House
Policy area: Finance and Financial Sector
Subjects: Advisory bodies
Bank accounts, deposits, capital
Banking and financial institutions regulation
Business investment and capital
Business records
Congressional oversight
Credit and credit markets
Economic development
Financial literacy
Financial services and investments
Government information and archives
Government lending and loan guarantees
Housing and community development funding
Interest, dividends, interest rates
Minority and disadvantaged businesses
Minority employment
Small business
Women in business
Women's employment

Summary:
action_date: 2019-12-05
text: 

Ensuring Diversity in Community Banking Act of 2019

 
This bill establishes and revises provisions related to minority depository institutions, community development financial institutions, and impact banks.
 
The bill (1) expands the definition of minority depository institutions to include women-owned banks, and (2) establishes impact banks as depository institutions with total assets less than $10 billion and where at least 50% of loans are extended to low-income borrowers. 
 
The bill establishes a program allowing minority depository institutions and impact banks to receive deposits from certain Department of the Treasury accounts through designated custodial entities. It also establishes the Minority Bank Deposit Program to ensure the use of minority banks and minority credit unions to the maximum extent possible to serve the financial needs of federal departments and agencies. 

Federal banking agencies must issue rules allowing new minority depository institutions and impact banks three years to meet capital requirements. 

action_date: 2020-09-21
text: 

Ensuring Diversity in Community Banking Act 

 
This bill establishes and revises provisions related to minority depository institutions, community development financial institutions, and impact banks. 
 
(Sec. 4) The bill expands the definition of minority depository institutions to include women-owned banks. It also establishes impact banks as depository institutions with total assets less than $10 billion and where a certain total dollar value of loans are extended to low-income borrowers. 
 
(Sec. 6) The bill creates Minority Depository Institutions Advisory Committees at the Federal Reserve Board, the Office of the Comptroller of the Currency, the Federal Deposit Insurance Corporation, and the National Credit Union Administration. The committees must provide advice to their respective entities regarding preservation of the number and character of minority-owned institutions and the creation of new institutions. 
 
(Sec. 8) The bill establishes the Minority Bank Deposit Program to prioritize the use of minority depository institutions to hold the deposits of federal departments and agencies. 
 
(Sec. 10) The bill sets forth the threshold of controlling shares with respect to minority depository institutions and impact banks. It also allows new minority depository institutions and impact banks to take three years to meet initial capital requirements. 
 
(Sec. 12) The bill establishes a program allowing minority depository institutions and impact banks to apply to receive deposits from certain Treasury accounts.
 
 (Sec. 13) The Federal Deposit Insurance Corporation must evaluate certain applications for deposit insurance for eligibility as a community development financial institution. 
 
(Sec. 14) The Small Business Administration must establish a task force on lending to small business concerns by improving relationships with community development financial institutions, minority depository institutions, and impact banks. 
 
(Sec. 15) The bill also decreases, beginning September 30, 2030, the cap on the surplus funds of the Federal Reserve banks. (Amounts exceeding this cap are deposited in the general fund of the Treasury.) 


Legislative actions:
action_date: 2020-09-22
text: Received in the Senate and Read twice and referred to the Committee on Banking, Housing, and Urban Affairs.
action_date: 2020-09-21
text: Motion to reconsider laid on the table Agreed to without objection.
action_date: 2020-09-21
text: On motion to suspend the rules and pass the bill, as amended Agreed to by voice vote. (text: CR H4597-4600)
action_date: 2020-09-21
text: Passed/agreed to in House: On motion to suspend the rules and pass the bill, as amended Agreed to by voice vote.
action_date: 2020-09-21
text: DEBATE - The House proceeded with forty minutes of debate on H.R. 5322.
action_date: 2020-09-21
text: Considered under suspension of the rules. (consideration: CR H4597-4602)
action_date: 2020-09-21
text: Mr. Sherman moved to suspend the rules and pass the bill, as amended.
action_date: 2019-12-11
text: Ordered to be Reported (Amended) by the Yeas and Nays: 52 - 0.
action_date: 2019-12-11
text: Committee Consideration and Mark-up Session Held.
action_date: 2019-12-10
text: Committee Consideration and Mark-up Session Held.
action_date: 2019-12-05
text: Referred to the Committee on Financial Services, and in addition to the Committee on Small Business, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.
action_date: 2019-12-05
text: Referred to the Committee on Financial Services, and in addition to the Committee on Small Business, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.
action_date: 2019-12-05
text: Introduced in House
action_date: 2019-12-05
text: Introduced in House