H.R. 6955

[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[H.R. 6955 Reported in House (RH)]

<DOC>

Union Calendar No. 535
119th CONGRESS
2d Session
H. R. 6955

[Report No. 119-617]

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) introduced the following bill; which 
was referred to the Committee on Financial Services

April 20, 2026

Additional sponsors: Mr. Kennedy of Utah, Mr. Knott, Mr. Calvert, and 
Mrs. Fedorchak

April 20, 2026

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 
7, 2026]

_______________________________________________________________________

A BILL

To make improvements to the Federal banking laws, 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; TABLE OF CONTENTS.

(a) Short Title.--This Act may be cited as the ``Main Street 
Capital Access Act'' or the ``Main Street Act''.
(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. Rural Depositories Revitalization Studies.
Sec. 104. Community Investment and Prosperity.
Sec. 105. CDFI Fund Transparency.
Sec. 106. CDFI Bond Guarantee Improvement.

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 
Transparency.
Sec. 204. Tailoring and Indexing Enhanced Regulations.
Sec. 205. Community Bank Regulatory Tailoring.
Sec. 206. Credit Union Board Modernization.

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. 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 
Transparency.

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.
Sec. 604. Bank Failure Prevention.

TITLE VII--STRENGTHENING TRANSPARENCY AND INVOLVEMENT IN BANK 
RESOLUTIONS

Sec. 701. Least Cost Exception.
Sec. 702. Enhancing Bank Resolution Participation.
Sec. 703. Failing Bank Acquisition Fairness.
Sec. 704. Systemic Risk Authority Transparency.

TITLE VIII--FACILITATING INNOVATION AND BANK PARTNERSHIPS

Sec. 801. Merchant Banking Modernization.
Sec. 802. Bank-Fintech Partnership Enhancement.

TITLE I--NEW BANK FORMATION AND LOCAL COMMUNITY ACCESS

SEC. 101. PROMOTING NEW BANK FORMATION.

(a) Phase-In of Capital Standards.--Notwithstanding any other 
provision of law, the Federal banking agencies shall issue rules that 
provide for a 3-year phase-in period for a depository institution or 
depository institution holding company to meet any Federal capital 
requirements that would otherwise be applicable to the depository 
institution or depository institution holding company, beginning on--
(1) the date on which the depository institution became an 
insured depository institution; or
(2) in the case of a depository institution holding 
company, the date on which the depository institution 
subsidiary of the depository institution holding company became 
an insured depository institution.
(b) Changes to Business Plans.--
(1) In general.--During the 3-year period beginning on the 
date on which a depository institution became an insured 
depository institution, if, as a condition of approval, the 
appropriate Federal banking agency imposes a requirement to 
obtain prior approval before deviating from a business plan, 
the insured depository institution or its depository 
institution holding company may request to deviate materially 
from a business plan that has been approved by the appropriate 
Federal banking agency by submitting a request to such agency 
pursuant to this section.
(2) 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 paragraph (1)--
(A) approve, conditionally approve, or deny such 
request; and
(B) notify the applicant of such decision and, if 
the agency denies the request--
(i) provide the applicant with the reason 
for such denial; and
(ii) suggest changes to the request that, 
if adopted, would allow the agency to approve 
such request.
(3) 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 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 beginning on the 
date on which a rural depository institution 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 pursuant to section 
201(b)(1) of the Economic Growth, Regulatory Relief, 
and Consumer Protection Act (12 U.S.C. 5371 note); or
(B) 7.5 percent.
(2) Phase-in authority.--The Federal banking agencies shall 
issue rules to phase-in the Community Bank Leverage Ratio 
described under paragraph (1) with respect to a rural 
depository institution 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:
(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, 
Regulatory 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 
metropolitan statistical area nor in a 
micropolitan statistical area that is adjacent 
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 census of the United 
States.
(C) Rural depository institution.--The term ``rural 
depository institution'' means a depository 
institution--
(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 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''.
(e) Study on De Novo Insured Depository Institutions.--
(1) Study.--The Federal banking agencies shall, jointly, 
carry out a study on--
(A) 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
(B) ways to promote more de novo insured depository 
institutions in areas currently underserved by insured 
depository institutions.
(2) 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 the 
Committee on Financial Services of the House of Representatives 
and the Committee on Banking, Housing, and Urban Affairs of the 
Senate containing all findings and determinations made in 
carrying out the study required under paragraph (1).
(f) Definitions.--In this section, the terms ``appropriate Federal 
banking agency'', ``depository institution'', ``depository institution 
holding company'', ``Federal banking agency'', and ``insured depository 
institution'' have the meaning given those terms, respectively, under 
section 3 of the Federal Deposit Insurance Act (12 U.S.C. 1813).

SEC. 102. NEW BANK APPLICATION NUMBERS KNOWLEDGE.

(a) Annual Report on National Bank and Federal 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 otherwise dispositioned.
(2) The mean and median times for preliminary approval of 
such applications.
(3) The mean and median times for final approval 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 includes the following, or with respect to any equivalent 
procedure used by the Board includes the following:
(1) The number of Federal credit union charter applications 
received, approved on a final basis, denied, withdrawn, 
inactive, or returned pending resubmission.
(2) The mean and median times for final approval 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 any equivalent procedure used by 
the Board of Governors includes the following:
(A) The number of applications to become a top-tier 
depository institution holding company 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 approve such 
applications.
(C) To the extent practicable, common reasons 
leading to denial or withdrawal of such applications.
(2) Top-tier depository institution holding company 
defined.--In this subsection, the term ``top-tier depository 
institution holding company'' means a depository institution 
holding company (as defined in section 3 of the Federal Deposit 
Insurance Act (12 U.S.C. 1813)) that is not controlled by any 
other depository institution holding company.
(d) Annual Report on Federal Deposit Insurance Applications.--The 
Federal Deposit Insurance Corporation shall publish an annual report 
that includes the following, or with respect to any equivalent 
procedure used by the Corporation includes the following:
(1) The number of applications for deposit insurance 
received, approved on a preliminary basis, approved on a final 
basis, denied, withdrawn, inactive, expired, mooted, returned, 
returned pending resubmission, 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 Institution and State Credit 
Union Charter Applications.--
(1) In general.--The Board of Governors of the Federal 
Reserve System, the Federal Deposit Insurance Corporation, and 
the National Credit Union Administration Board shall, jointly, 
and in consultation with State banking regulators and State 
credit union regulators, publish an annual report that includes 
the following, or with respect to any equivalent procedure used 
by such agencies includes the following:
(A) The number of applications for a State 
depository institution charter 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 approve such 
applications, with times for each State shown 
separately.
(C) To the extent practicable, common reasons 
leading to denial or withdrawal of such applications.
(2) Definitions.--In this subsection:
(A) State.--The term ``State'' means any State of 
the United States, the District of Columbia, and any 
territory of the United States.
(B) 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
(ii) a State credit union, as defined in 
section 101 of the Federal Credit Union Act (12 
U.S.C. 1752).

SEC. 103. RURAL DEPOSITORIES REVITALIZATION STUDIES.

(a) Study on Rural Depository Institutions.--The Federal banking 
agencies shall, jointly, carry out a study--
(1) to identify methods to improve the growth, capital 
adequacy, and profitability of depository institutions in the 
United States that primarily serve rural areas; and
(2) to identify Federal statutes (other than appropriations 
Acts) or regulations of the Federal banking agencies that 
limit--
(A) the methods identified under paragraph (1); or
(B) the establishment of de novo depository 
institutions in rural areas.
(b) Report on Rural Depository Institutions.--Not later than 1 year 
after the date of enactment of this Act, the Federal banking agencies 
shall, jointly, issue a report to the Committee on Financial Services 
of the House of Representatives and the Committee on Banking, Housing, 
and Urban Affairs of the Senate containing all findings and 
determinations made in carrying out the study required under subsection 
(a).
(c) Study on Rural Credit Unions.--The National Credit Union 
Administration shall carry out a study--
(1) to identify methods to improve the growth, capital 
adequacy, and profitability of insured credit unions in the 
United States that primarily serve rural areas; and
(2) to identify Federal statutes (other than appropriations 
Acts) or regulations of the National Credit Union 
Administration that limit--
(A) the methods identified under paragraph (1); or
(B) the establishment of de novo insured credit 
unions in rural areas.
(d) Report on Rural Credit Unions.--Not later than 1 year after the 
date of enactment of this Act, the National Credit Union Administration 
shall issue a report to the Committee on Financial Services of the 
House of Representatives and the Committee on Banking, Housing, and 
Urban Affairs of the Senate containing all findings and determinations 
made in carrying out the study required under subsection (c).
(e) Definitions.--In this section:
(1) Depository institution.--The term ``depository 
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 
Deposit Insurance Corporation.
(3) Insured credit union.--The term ``insured credit 
union'' has the meaning given that term in section 101 of the 
Federal Credit Union Act (12 U.S.C. 1752).
(4) Rural area.--The term ``rural area'' means--
(A) a county that is neither in a metropolitan 
statistical area nor in a micropolitan statistical area 
that is adjacent 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
(B) a census block that is not in an urban area, as 
defined by the Bureau of the Census using the latest 
decennial census of the United States.

SEC. 104. COMMUNITY INVESTMENT AND PROSPERITY.

(a) Revised Statutes of the United States.--The paragraph 
designated as the ``Eleventh'' of section 5136 of the Revised Statutes 
of the United States (12 U.S.C. 24) is amended, in the fifth sentence, 
by striking ``15'' each place that term appears and inserting ``20''.
(b) Federal Reserve Act.--The 23rd paragraph of section 9 of the 
Federal Reserve Act (12 U.S.C. 338a) is amended, in the fifth sentence, 
by striking ``15'' each place that term appears and inserting ``20''.

SEC. 105. CDFI FUND TRANSPARENCY.

Section 104(b) of the Riegle Community Development and Regulatory 
Improvement Act of 1994 (12 U.S.C. 4703(b)) is amended by adding to the 
end the following:
``(5) Annual testimony.--The Secretary of the Treasury (or 
a designee of the Secretary) shall, at the discretion of the 
Chair of the Committee on Financial Services of the House of 
Representatives and the Chair of the Committee on Banking, 
Housing, and Urban Affairs of the Senate, annually testify 
before such committees (or a subcommittee of such committees) 
regarding the operations of the Fund during the previous 
year.''.

SEC. 106. CDFI BOND GUARANTEE IMPROVEMENT.

(a) Sense of Congress.--It is the sense of Congress that the 
authority to guarantee bonds under section 114A of the Community 
Development Banking and Financial Institutions Act of 1994 (12 U.S.C. 
4713a) (commonly referred to as the ``CDFI Bond Guarantee Program'') 
provides community development financial institutions with a 
sustainable source of long-term capital and furthers the mission of the 
Community Development Financial Institutions Fund (established under 
section 104(a) of such Act (12 U.S.C. 4703(a))) to increase economic 
opportunity and promote community development investments for 
underserved populations and distressed communities in the United 
States.
(b) Guarantees for Bonds and Notes Issued for Community or Economic 
Development Purposes.--
(1) In general.--Section 114A of the Community Development 
Banking and Financial Institutions Act of 1994 (12 U.S.C. 
4713a) is amended--
(A) in subsection (c)(2)--
(i) by striking ``, multiplied by an amount 
equal to the outstanding principal balance of 
issued notes or bonds''; and
(ii) by inserting ``outstanding'' before 
``principal amount'';
(B) by amending subsection (e)(2) to read as 
follows:
``(2) Limitation on guarantee amount.--The Secretary may 
not guarantee any amount under the Program equal to an amount 
less than $25,000,000, but the total of all such guarantees in 
any fiscal year may not exceed $1,000,000,000.'';
(C) in subsection (g)(1), by striking ``10 basis 
points'' and inserting ``not fewer than 10 basis points 
and not more than 15 basis points''; and
(D) in subsection (k), by striking ``September 30, 
2014'' and inserting ``December 31, 2028''.
(2) Clerical amendment.--The table of contents in section 
1(b) of the Riegle Community Development and Regulatory 
Improvement Act of 1994 (Public Law 103-325; 108 Stat. 2160) is 
amended by inserting after the item relating to section 114 the 
following:

``Sec. 114A. Guarantees for bonds and notes issued for community or 
economic development purposes.''.
(c) Report on the CDFI Bond Guarantee Program.--Not later than 3 
years after the date of enactment of this Act, the Secretary of the 
Treasury shall issue a report to the Committee on Banking, Housing, and 
Urban Affairs of the Senate and the Committee on Financial Services of 
the House of Representatives on the effectiveness of the CDFI bond 
guarantee program established under section 114A of the Community 
Development Banking and Financial Institutions Act of 1994 (12 U.S.C. 
4713a).

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--
(A) the term ``Federal financial institutions 
regulatory agency'' means the Office of the Comptroller 
of the Currency, the Board of Governors of the Federal 
Reserve System, the Federal Deposit Insurance 
Corporation, the National Credit Union Administration, 
and the Bureau of Consumer Financial Protection; and
(B) the term ``regulatory action''--
(i) means any proposed, interim, or final 
rule or regulation; and
(ii) does not include any action taken by a 
Federal financial institutions regulatory 
agency that is solely applicable to an 
individual institution, including an 
enforcement action, adjudication, or order.
(2) Consideration and tailoring.--For any regulatory action 
occurring after the date of enactment of this Act, each Federal 
financial institutions regulatory agency shall--
(A) take into consideration the risk profile and 
business models of each type of institution or class of 
institutions subject to the regulatory action; and
(B) tailor the regulatory action applicable to an 
institution, or type of institution, in a manner that 
limits the regulatory impact, including cost, human 
resource allocation, and other burdens, on the 
institution or type of institution 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 enactment 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 underlying 
policy objectives of the regulatory action.
(4) Notice of proposed and final rulemaking.--Each Federal 
financial institutions regulatory agency shall disclose and 
document in every notice of proposed rulemaking and in any 
final rulemaking for a regulatory action how the agency has 
applied paragraphs (2) and (3).
(5) Reports to congress.--
(A) Agency reporting.--Not later than 1 year after 
the date of enactment of this Act and annually 
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 actions taken 
to tailor the regulatory actions of the Federal 
financial institutions regulatory agency pursuant to 
the requirements of this section.
(B) GAO reporting.--Not later than 18 months after 
the date of enactment of this Act, the Comptroller 
General of the United States 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 evaluating the 
effects of this section on the factors described in 
paragraph (3).
(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 establishing a reduced 
reporting requirement for all banks eligible for the Community Bank 
Leverage Ratio, as defined in section 201(a) of the Economic Growth, 
Regulatory Relief, 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 Banking, Housing, and 
Urban Affairs of the Senate and the Committee on Financial Services of 
the House of Representatives a report on the modernization of bank 
supervision, including the following factors:
(1) Changing bank business models.
(2) Examiner workforce and training.
(3) The structure of supervisory activities within 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 enactment 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 consolidated 
asset threshold under that appendix to $6,000,000,000 for any bank 
holding company or savings and loan holding company.

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 percent'' and 
inserting ``not less than 6 percent and not more than 9 
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 report issued pursuant to subsection 
(b)(2), the Board of Governors of the Federal Reserve System, 
the Comptroller of the Currency, and the Federal Deposit 
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 report.
(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 Corporation shall commence a review 
of the Community Bank Leverage Ratio (``CBLR'') developed under 
section 201 of the Economic Growth, Regulatory Relief, and 
Consumer Protection Act (12 U.S.C. 5371 note), and rules issued 
thereunder, which shall include 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 burden 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 Services of the 
House of Representatives and the Committee 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 modifications, 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 framework, 
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 recommendations.
(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 REGULATIONS.

(a) Threshold Adjustments To Account for Historical Increases in 
Current-Dollar United States Gross Domestic Product.--
(1) Federal reserve act.--Section 11 of the Federal Reserve 
Act (12 U.S.C. 248) is amended--
(A) by redesignating the second subsection (s) 
(relating to assessments) as subsection (t); and
(B) in subsection (t), as so redesignated--
(i) in paragraph (2), by striking 
``$100,000,000,000'' each place that term 
appears and inserting ``$150,000,000,000''; and
(ii) 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 Company Act of 1956 (12 
U.S.C. 1843(k)(6)(B)(ii)) is amended by striking 
``$10,000,000,000'' and inserting ``$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)--
(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 
inserting ``$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 striking 
``$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 inserting 
``$370,000,000,000''.
(b) Periodic Adjustments to Thresholds To Account for Future 
Increases in Current-Dollar United States Gross Domestic Product.--
(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-DOLLAR 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 Governors shall increase the 
thresholds described in subsection (b) 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 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 described 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 assessments) of section 11 of the 
Federal Reserve Act.
``(2) Each bank holding company total consolidated asset 
amount in--
``(A) sections 116(a), 121(a), 163(b), 164, 
165(a)(1), 165(h)(2), and 165(j)(1) of this Act; and
``(B) section 401(f) of the Economic Growth, 
Regulatory Relief, and Consumer Protection 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 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 calendar year in which the increase is 
required to be calculated 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, review--
``(1) any regulation--
``(A) implementing section 165 of this Act; or
``(B) making specific cross-reference to any 
regulation of the Board of Governors implementing 
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 specific 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 Corporation 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 
appropriate for such regulations. In making such determination, the 
Board of Governors, the Comptroller of the Currency, and the 
Corporation shall--
``(1) use the values for current-dollar United States gross 
domestic product most recently published 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, taking into account the 
entities regulated by each such agency and the purposes for 
which such threshold was established; and
``(3) seek to adjust such thresholds, to the extent 
feasible, with rounding consistent with section 177(d) of this 
Act.
``(c) Report.--Upon conclusion of each review required under 
subsection (a), each of the Board of Governors, the Comptroller of the 
Currency, and the Corporation shall transmit a report to the Committee 
on Financial Services of the House of Representatives and the Committee 
on Banking, Housing, and Urban Affairs of the Senate containing a 
description of any modification of any regulation such agency made 
pursuant to subsection (b).''.
(2) Clerical amendment.--The table of contents 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 current-dollar United States gross 
domestic product.
``Sec. 178. Adjustments to thresholds established by rule to account 
for increases in current-dollar United 
States gross domestic product.''.

SEC. 205. COMMUNITY BANK REGULATORY TAILORING.

(a) Threshold Adjustments to Account for Historical Increases in 
Current-dollar United States Gross Domestic Product.--
(1) Bank holding company act of 1956.--The Bank Holding 
Company Act of 1956 (12 U.S.C. 1841 et seq.) is amended--
(A) in section 5(c)(3)(C)(ii) (12 U.S.C. 
1844(c)(3)(C)(ii)), by striking ``$1,000,000'' and 
inserting ``$3,000,000''; and
(B) in section 13(h)(1)(B)(i) (12 U.S.C. 
1851(h)(1)(B)(i)), by striking ``$10,000,000,000'' and 
inserting ``$15,000,000,000''.
(2) Community reinvestment act of 1977.--Section 809(a) of 
the Community Reinvestment Act of 1977 (12 U.S.C. 2908(a)) is 
amended by striking ``$250,000,000'' and inserting 
``$800,000,000''.
(3) Depository institution management interlocks act.--The 
Depository Institution Management Interlocks Act (12 U.S.C. 
3201 et seq.) is amended--
(A) in section 202(4) (12 U.S.C. 3201(4)), by 
striking ``$100,000,000'' and inserting 
``$600,000,000'';
(B) in section 203(1) (12 U.S.C. 3202(1)), by 
striking ``$50,000,000'' and inserting 
``$110,000,000''; and
(C) in section 204 (12 U.S.C. 3203)--
(i) by striking ``$2,500,000,000'' and 
inserting ``$10,000,000,000''; and
(ii) by striking ``$1,500,000,000'' and 
inserting ``$10,000,000,000''.
(4) Dodd-frank wall street reform and consumer protection 
act.--The Dodd-Frank Wall Street Reform and Consumer Protection 
Act (12 U.S.C. 5301 et seq.) is amended--
(A) in section 210 (12 U.S.C. 5390)--
(i) in subsection (o), by striking 
``$50,000,000,000'' in each place it appears 
and inserting ``$105,000,000,000''; and
(ii) in subsection (r), by striking 
``$1,000,000'' and inserting ``$5,000,000''; 
and
(B) in section 956(f) (12 U.S.C. 5641(f)), by 
striking ``$1,000,000,000'' and inserting 
``$3,000,000,000''.
(5) Federal credit union act.--The Federal Credit Union Act 
(12 U.S.C. 1751 et seq.) is amended--
(A) in section 202 (12 U.S.C. 1782)--
(i) in subsection (a)(6)(C)(iii)--
(I) in the heading, by striking 
``De minimus'' and inserting ``De 
minimis''; and
(II) by striking ``$10,000,000'' 
and inserting ``$34,000,000'';
(ii) in subsection (a)(6)(D)--
(I) by striking ``$500,000,000'' 
and inserting ``$2,000,000,000''; and
(II) by striking ``$10,000,000'' 
and inserting ``$34,000,000'';
(iii) in subsection (b)(1)(A), by striking 
``$50,000,000'' each place that term appears 
and inserting ``$170,000,000''; and
(iv) in subsection (c)(1)(A)(iii), by 
striking ``$50,000,000'' each place that term 
appears and inserting ``$170,000,000''; and
(B) in section 216 (12 U.S.C. 1790d)--
(i) in subsection (f)(2), by striking 
``$10,000,000'' and inserting ``$34,000,000'';
(ii) in subsection (i)(4)(B), by striking 
``$5,000,000'' and inserting ``$17,000,000'';
(iii) in subsection (j)(2)(A), by striking 
``$25,000,000'' and inserting ``$51,000,000''; 
and
(iv) in subsection (o)(4), by striking 
``$10,000,000'' and inserting ``$34,000,000''.
(6) Federal deposit insurance act.--The Federal Deposit 
Insurance Act (12 U.S.C. 1811 et seq.) is amended--
(A) in section 7(a)(12) (12 U.S.C. 1817(a)(12)), by 
striking ``$5,000,000,000'' and inserting 
``$8,000,000,000'';
(B) in section 11(p)(1)(A)(i) (12 U.S.C. 
1821(p)(1)(A)(i)), by striking ``$1,000,000'' and 
inserting ``$5,000,000'';
(C) in section 36 (12 U.S.C. 1831m)--
(i) in subsection (i), by striking 
``$5,000,000,000'' each place that term appears 
and inserting ``$21,000,000,000''; and
(ii) in subsection (j), by striking 
``$150,000,000'' each place that term appears 
and inserting ``$800,000,000''; and
(D) in section 38 (12 U.S.C. 1831o)--
(i) in subsection (b), by striking 
``$300,000,000'' and inserting 
``$2,000,000,000''; and
(ii) in subsection (k)--
(I) by striking ``$50,000,000'' and 
inserting ``$110,000,000''; and
(II) by striking ``$75,000,000'' 
and inserting ``$150,000,000''.
(7) Federal home loan bank act.--Section 2(10) of the 
Federal Home Loan Bank Act (12 U.S.C. 1422(10)) is amended by 
striking ``$1,000,000,000'' each place that term appears and 
inserting ``$3,000,000,000''.
(8) Federal reserve act.--The Federal Reserve Act (12 
U.S.C. 221 et seq.) is amended--
(A) in section 7(a)(1) (12 U.S.C. 289) by striking 
``$10,000,000,000'' each place that term appears and 
inserting ``$17,000,000,000''; and
(B) in section 22(h)(5)(C) (12 U.S.C. 
375b(h)(5)(C)) by striking ``$100,000,000'' and 
inserting ``$500,000,000''.
(9) Home mortgage disclosure act of 1975.--The Home 
Mortgage Disclosure Act of 1975 (12 U.S.C. 2801 et seq.) is 
amended--
(A) in the second paragraph (3) of section 304(i) 
(12 U.S.C. 2803(i)(3); relating to ``Exemption from 
certain disclosure requirements''), by striking 
``$30,000,000'' and inserting ``$160,000,000''; and
(B) in section 309(a) (12 U.S.C. 2808(a)), by 
striking ``$10,000,000'' and inserting 
``$180,000,000''.
(10) Home owners' loan act.--Section 5(u) of the Home 
Owners' Loan Act (12 U.S.C. 1464(u)) is amended--
(A) in paragraph (2)(A)(i), by striking 
``$500,000'' and inserting ``$3,000,000''; and
(B) in paragraph (2)(A)(ii), by striking 
``$30,000,000'' and inserting ``$160,000,000''.
(11) International lending supervision act of 1983.--
Section 909(a)(1) of the International Lending Supervision Act 
of 1983 (12 U.S.C. 3908(a)(1)) is amended by striking 
``$20,000,000'' and inserting ``$160,000,000''.
(12) Real estate settlement procedures act of 1974.--
Section 3(1)(B)(iv) of the Real Estate Settlement Procedures 
Act of 1974 (12 U.S.C. 2602(1)(B)(iv)) is amended by striking 
``$1,000,000'' and inserting ``$19,000,000''.
(13) Revised statutes of the united states.--Section 
5136A(a)(2)(D)(ii) of the Revised Statutes of the United States 
(12 U.S.C. 24a(a)(2)(D)(ii)) is amended by striking 
``$50,000,000,000'' and inserting ``$175,000,000,000''.
(14) Truth in lending act.--Section 129C(b)(2)(F)(i) of the 
Truth in Lending Act (15 U.S.C. 1639c(b)(2)(F)(i)) is amended 
by striking ``$10,000,000,000'' and inserting 
``$15,000,000,000''.
(b) Threshold Adjustments to Account for Historical Increases in 
Current-dollar United States Gross Domestic Product.--
(1) In general.--By April 1, 2031, and the 1st day of each 
subsequent 5-year period, the Board of Governors of the Federal 
Reserve System shall prescribe the amount by which each dollar 
amount described in subsection (a) shall be increased 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 adjustment is calculated under this 
subsection, to the published annual value of current-dollar 
United States gross domestic product for the calendar year 
preceding April 1, 2026.
(2) Currency of information.--The values used in the 
calculation under paragraph (1) shall be, as of the date of the 
calculation, the values most recently published by the 
Department of Commerce.
(3) Rounding.--
(A) If any amount equal to or greater than 
$100,000,000,000 determined under paragraph (1) 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.
(B) If any amount less than $100,000,000,000 but 
equal to or greater than $10,000,000,000 determined 
under paragraph (1) 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.
(C) If any amount less than $10,000,000,000 but 
equal to or greater than $1,000,000,000 determined 
under paragraph (1) for any period is not a multiple of 
$500,000,000, the amount shall be rounded up to the 
nearest $500,000,000.
(D) If any amount less than $1,000,000,000 but 
equal to or greater than $100,000,000 determined under 
paragraph (1) for any period is not a multiple of 
$50,000,000, the amount shall be rounded up to the 
nearest $50,000,000.
(E) If any amount less than $100,000,000 but equal 
to or greater than $10,000,000 determined under 
paragraph (1) for any period is not a multiple of 
$5,000,000, the amount shall be rounded up to the 
nearest $5,000,000.
(F) If any amount less than $10,000,000 but equal 
to or greater than $1,000,000 determined under 
paragraph (1) for any period is not a multiple of 
$500,000, the amount shall be rounded up to the nearest 
$500,000.
(G) If any amount less than $1,000,000 but equal to 
or greater than $100,000 determined under paragraph (1) 
for any period is not a multiple of $50,000, the amount 
shall be rounded up to the nearest $50,000.
(H) If any amount less than $100,000 but equal to 
or greater than $10,000 determined under paragraph (1) 
for any period is not a multiple of $5,000, the amount 
shall be rounded up to the nearest $5,000.
(I) If any amount less than $10,000 but equal to or 
greater than $1,000 determined under paragraph (1) for 
any period is not a multiple of $500, the amount shall 
be rounded up to the nearest $500.
(J) If any amount less than $1,000 but equal to or 
greater than $100 determined under paragraph (1) for 
any period is not a multiple of $50, the amount shall 
be rounded up to the nearest $50.
(K) If any amount less than $100 but equal to or 
greater than $10 determined under paragraph (1) for any 
period is not a multiple of $5, the amount shall be 
rounded up to the nearest $5.
(L) If any amount less than $10 but equal to or 
greater than $1 determined under paragraph (1) for any 
period is not a multiple of $0.50, the amount shall be 
rounded up to the nearest $0.50.
(4) Publication.--Not later than April 5 of any calendar 
year in which an adjustment is required to be calculated under 
paragraph (1), the Board of Governors of the Federal Reserve 
System shall publish in the Federal Register the dollar amounts 
as so calculated.
(5) Implementation period.--The increase in the dollar 
amounts shall take effect on January 1 of the year immediately 
succeeding any calendar year in which an adjustment is required 
to be calculated under paragraph (1).

SEC. 206. CREDIT UNION BOARD MODERNIZATION.

Section 113 of the Federal Credit Union Act (12 U.S.C. 1761b) is 
amended--
(1) by striking ``monthly'' each place such term appears;
(2) in the matter preceding paragraph (1), by striking 
``The board of directors'' and inserting the following:
``(a) In General.--The board of directors'';
(3) in subsection (a) (as so designated), by striking 
``shall meet at least once a month and''; and
(4) by adding at the end the following:
``(b) Meetings.--The board of directors of a Federal credit union 
shall meet as follows:
``(1) With respect to a de novo Federal credit union, not 
less frequently than monthly during each of the first five 
years of the existence of such Federal credit union.
``(2) Not less than six times annually, with at least one 
meeting held during each fiscal quarter, with respect to a 
Federal credit union--
``(A) with composite rating of either 1 or 2 under 
the Uniform Financial Institutions Rating System (or an 
equivalent rating under a comparable rating system); 
and
``(B) with a capability of management rating under 
such composite rating of either 1 or 2.
``(3) Not less frequently than once a month, with respect 
to a Federal credit union--
``(A) with composite rating of either 3, 4, or 5 
under the Uniform Financial Institutions Rating System 
(or an equivalent rating under a comparable rating 
system); or
``(B) with a capability of management rating under 
such composite rating of either 3, 4, or 5.''.

TITLE III--FAIR AND TRANSPARENT 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 Sensitivity to market 
risk) are a critical tool for evaluating the safety and 
soundness of financial institutions, and the basis for 
determining significant regulatory matters such as the 
evaluation for mergers and acquisitions and a bank's deposit 
insurance premiums;
(2) the CAMELS rating system relies heavily on examiner 
judgment, which can lead to subjective and inconsistent ratings 
across similar institutions;
(3) establishing articulable, clear, and reviewable 
measures for each CAMELS component and their relative weighting 
in determining composite ratings will promote fairness, 
consistency, and accountability in supervisory 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 System.--
(1) In general.--The Federal Financial Institutions 
Examination Council Act of 1978 (12 U.S.C. 3301 et seq.) is 
amended by adding at the end the following:

``SEC. 1012. AMENDMENTS TO THE CAMELS RATING SYSTEM.

``(a) In General.--The Council shall make recommendations to amend 
the Uniform Financial Institutions Rating System, and the CAMELS 
components thereunder, to--
``(1) establish articulable, clear, and reviewable criteria 
for assessing each CAMELS component;
``(2) revise the factors affecting each CAMELS component to 
derive a composite rating that more accurately reflects the 
material financial condition and risk profile of the financial 
institutions being rated;
``(3) either--
``(A) eliminate the management component of the 
CAMELS rating system; or
``(B) revise the management component of the CAMELS 
rating system to limit the assessment under such 
component to articulable, clear, and reviewable 
measures of the governance and controls used to manage 
an institution's risk profile;
``(4) ensure that composite ratings consider the financial 
institution's compliance with--
``(A) section 21 of the Federal Deposit Insurance 
Act (12 U.S.C. 1829b);
``(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 financing; and
``(5) ensure that composite ratings are determined 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 regulatory 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.
``(d) Rule of Construction.--Nothing in this section may be 
construed to limit the authority of the Federal financial institutions 
regulatory agencies to take supervisory, 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 ``; or''; 
and
(C) by striking clause (ii).

SEC. 302. FAIR AUDITS AND INSPECTIONS FOR REGULATORS' EXAMS.

(a) Timeliness of Examinations and Examination Reports.--The 
Federal Financial Institutions Examination Council Act of 1978 (12 
U.S.C. 3301 et seq.), as amended by section 301(b)(1), is further 
amended by adding at the end the following:

``SEC. 1013. TIMELINESS OF EXAMINATIONS AND EXAMINATION REPORTS.

``(a) Timeliness of Examinations.--A Federal financial institutions 
regulatory agency shall complete any examination of a financial 
institution, other than a financial institution subject to a continuous 
or resident examination program, within 270 days of commencing the 
examination, except that such period may be extended by the Federal 
financial institutions regulatory 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 financial institutions 
regulatory agency shall provide a final examination report to a 
financial institution, other than a financial institution subject to a 
continuous or resident examination program, 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 information by 
the institution relating to the examination.
``(c) Exit Interview Requirement.--Within 30 days of completing an 
examination for a financial institution not subject to a continuous or 
resident examination program, a Federal financial institutions 
regulatory agency shall conduct an exit interview with the financial 
institution's senior management or the board of directors, except that 
such period may be extended by the Federal financial institutions 
regulatory agency by providing written notice to the institution 
describing with particularity the reasons that a longer period is 
needed to complete the exit interview.
``(d) Examination Materials.--Upon the written 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 information relied upon by the agency in 
support of a material supervisory determination.''.
(b) Timeliness of Required Prudential Private Letter Rulings.--The 
Federal Financial 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 PRUDENTIAL PRIVATE LETTER RULINGS.

``(a) Authority and Regulation.--
``(1) In general.--Each Federal financial institutions 
regulatory agency shall establish procedures providing that a 
covered financial institution may, upon application by the 
covered financial institution and with respect to a covered 
action, obtain written advice regarding--
``(A) the agency's non-objection to the financial 
institution conducting a particular activity;
``(B) the agency's interpretation of a law or 
regulation as applied to a particular matter;
``(C) the agency's interpretation of how generally 
accepted accounting principles or accounting 
objectives, standards, and requirements apply to a 
particular matter; or
``(D) the agency's application of any supervisory 
guidance, statement of policy, or interpretive rule to 
a particular matter.
``(2) Covered action defined.--In this subsection and with 
respect to a covered financial institution, the term `covered 
action' means--
``(A) any action in connection with a regulated 
activity that the covered financial institution is 
taking or is intending to take, including--
``(i) entering into a transaction;
``(ii) issuing a product or service; or
``(iii) changing the corporate structure of 
the covered financial institution; and
``(B) a Federal financial institutions regulatory 
agency's objection to the covered financial institution 
commencing or otherwise conducting an activity 
(including an action described in subparagraph (A)).
``(b) Contents of Request.--The procedures established under 
subsection (a) shall provide that a request for written advice made 
under the procedures 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 accepted 
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 for written advice 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 subsection (b); and
``(2) if the request does not contain all of the 
information required under subsection (b)--
``(A) provide the financial institution with an 
explanation of what information is missing; and
``(B) notify the financial institution that the 
financial institution may provide the missing 
information to the agency within 30 days.
``(d) Providing Missing Information.--If a Federal financial 
institutions regulatory agency informs the financial institution under 
subsection (c) that the request for written advice does not contain all 
the information required under subsection (b), the financial 
institution may provide the missing information to the Federal 
financial institutions regulatory 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 institutions regulatory 
agency receiving a request for written advice under the procedures 
established under subsection (a) shall provide the financial 
institution with a written response (or, for purposes of paragraph (3), 
notify the financial institution that a determination cannot be made)--
``(1) if the initial request contains the information 
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);
``(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 beginning on the date such missing 
information is provided; or
``(3) if the initial request does not contain the 
information required under subsection (b), and the financial 
institution does not provide the missing information 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) Limited Binding Effect.--Written advice issued by a Federal 
financial institutions regulatory agency under the procedures 
established under this section--
``(1) shall be binding on the agency with respect to the 
financial institution requesting the written advice and the 
specific facts described in the request;
``(2) may be relied upon by the financial institution 
requesting the written advice in good faith; and
``(3) shall not be binding on the agency with respect to 
any other person or institution and shall not be treated as 
precedent.
``(g) Confidentiality and Privilege.--
``(1) Treatment of written advice.--Written advice issued 
under this section, and any materials submitted in connection 
therewith, and the fact that a request for written advice was 
made shall be treated as confidential supervisory information 
and exempt from disclosure under section 552(b) of title 5, 
United States Code.
``(2) Publishing of anonymized or redacted summaries.--A 
Federal financial institutions regulatory agency may publish 
anonymized or redacted summaries of rulings for informational 
purposes.
``(h) Modification or Revocation.--A Federal financial institutions 
regulatory agency may modify or revoke written advice issued under this 
section only if--
``(1) the requesting financial institution made a material 
misstatement or omission of fact;
``(2) there has been a change in controlling law; or
``(3) the ruling is inconsistent with a final rule or 
judicial decision issued after the date the written advice was 
issued.
``(i) Reasonable Fees.--Each Federal financial institutions 
regulatory agency may establish and collect a reasonable fee for the 
processing and issuance of any written advice issued under this 
section, and such fee--
``(1) shall be based on the estimated cost to the agency of 
reviewing, analyzing, and responding to the request;
``(2) may vary based on the complexity of the request or 
the size of the requesting institution; and
``(3) shall be prescribed by regulation.
``(j) Finality.--Written advice issued under the procedures 
established under this section shall not be construed as a final agency 
action.''.
(c) Office of Independent Examination Review.--
(1) In general.--The Federal Financial Institutions 
Examination Council Act of 1978 (12 U.S.C. 3301 et seq.), as 
amended by subsection (b), is further amended by adding at the 
end the following:

``SEC. 1015. OFFICE OF INDEPENDENT EXAMINATION REVIEW.

``(a) Establishment.--There is established in the Council an Office 
of Independent Examination Review (the `Office').
``(b) Board of Independent Examination Review.--
``(1) In general.--The head of the Office shall be the 
Board of Independent Examination Review, which shall be 
comprised of 3 members, appointed by the President, by and with 
the advice and consent of the Senate.
``(2) Qualifications.--The President shall appoint 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 are not, and were not during 
the previous 5-year period, employed by a Federal 
financial institutions regulatory agency or a Federal 
reserve bank and who--
``(i) are a licensed attorney or a 
certified public accountant authorized to 
practice under the laws of a State, the 
District of Columbia, or a territory of the 
United States;
``(ii) have academic or private sector 
experience relating to financial services; or
``(iii) have relevant work-related 
experience in consumer affairs or compliance 
with consumer protection laws with respect to 
financial institutions.
``(C) Individuals with at least 10 years private 
sector financial services senior management-level 
experience.
``(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 institutions regulatory 
agency or a Federal reserve bank; or
``(B) is, or was during the previous 2-year period, 
employed by a financial institution.
``(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. Upon the expiration of a 
member's terms of office, the member shall continue to 
serve until the member's successor has been confirmed 
by the Senate.
``(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 enactment of this section, 1 
member of the Board shall constitute a quorum until the 
Board has 3 members.
``(8) Rate of pay.--The annual rate of basic pay for the 
members of the Board shall be the rate of basic pay for Level 
IV of the Executive Schedule under section 5315 of title 5, 
United States Code.
``(c) Staffing.--The Board is authorized to hire staff to support 
the activities of the Office of Independent Examination Review, and set 
the salaries of such staff. 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 regulatory 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 during 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 behalf of such 
institutions, concerning completed examinations, examination 
practices, or examination reports;
``(2) hold meetings, at least once every three months and 
in locations designed to encourage participation 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;
``(3) review examination procedures of the Federal 
financial institutions regulatory agencies to ensure 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 supervisory 
appeal initiated under section 1016; and
``(6) report annually to the Committee on Financial 
Services of the House of Representatives, the Committee on 
Banking, Housing, and Urban Affairs of the Senate, and the 
Council, on the reviews carried out pursuant to paragraphs (3) 
and (5), including compliance with the requirements set forth 
in section 1014 regarding timeliness of examination reports, 
and the Board's recommendations for improvements in examination 
procedures, practices, and policies.
``(e) Confidentiality.--
``(1) In general.--The Board and the Council shall keep 
confidential--
``(A) all meetings, discussions, and information 
provided by financial institutions and Federal 
financial institutions regulatory agencies that involve 
confidential supervisory information or privileged 
information;
``(B) all information and communications exchanged 
between a financial institution and the Office of 
Independent Examination Review; and
``(C) all information and communications exchanged 
between a Federal financial institutions regulatory 
agency and the Office of Independent Examination 
Review.
``(2) Submission of information does not constitute a 
waiver.--Section 18(x) of the Federal Deposit Insurance Act (12 
U.S.C. 1828(x)) shall apply to the submission of information to 
the Board by a financial institution or a Federal financial 
institutions regulatory agency to the same extent as such 
section 18(x) applies to the submission of information 
described in that section 18(x).
``(3) Sharing of information without waiving privilege.--
The Board shall be considered a `covered agency' for purposes 
of section 11(t) of the Federal Deposit Insurance Act (12 
U.S.C. 1821(t)).''.
(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 Independent 
Examination Review established under section 1015(b);
``(5) the term `material supervisory determination' has the 
meaning given such term in section 309(c) of the Riegle 
Community Development and Regulatory Improvement Act of 1994;
``(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 Federal 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 30 days after 
receiving the final report of examination that is the subject 
of such review.
``(2) Extension.--The institution may file a written 
request with the Board for an extension of the 60-day time 
period described under paragraph (1), which shall state good 
cause for granting the extension. 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 
determination that is the subject of the requested 
independent examination review;
``(B) state the reasons why the institution 
believes that the material supervisory determination 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 documents 
in the possession of the institution that the 
institution wishes to be considered.
``(4) Information made available to institution.--An 
institution seeking a review of a material supervisory 
determination may, not later than 7 days after receiving the 
final examination report, request that the Federal financial 
institutions regulatory agency that made the material 
supervisory determination provide the institution with all 
examination and factual information relied upon by the agency 
in making the material supervisory determination. The agency 
shall provide that information to the institution not later 
than 14 days after receiving the request.
``(5) Submission of record.--After receiving a written 
notice of review from a financial institution under this 
subsection, the Board shall direct the Federal financial 
institutions regulatory agency that made the material 
supervisory determination under review to file with the Board 
the supervisory record of the examination resulting in the 
material supervisory determination under review.
``(c) Determination; Right to Hearing.--
``(1) In general.--The Board shall--
``(A) determine the merits on the record, including 
whether the material supervisory determination being 
reviewed should be upheld, canceled, or modified; or
``(B) at the election of the financial institution, 
conduct a hearing, which shall take place not later 
than 60 days after the petition for review is received 
by the Board.
``(2) Right to obtain testimony.--A financial institution 
electing for a hearing under paragraph (1)(B) shall have the 
right the obtain testimony under oath from agency employees and 
obtain documents and other evidence at the hearing, or in 
advance of the hearing, according to procedures instituted 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 review of a material 
supervisory determination being reviewed under this subsection 
shall be de novo, and the Board shall not defer to the opinions 
of examiners, but shall independently determine the 
appropriateness of the material supervisory determination based 
upon the relevant statutes, regulations, other appropriate 
guidance, and the evidentiary record.
``(5) Policy matters.--The Board shall conduct reviews 
under this section applying the policies, regulations, and 
interpretations of the Federal financial institutions 
regulatory agency that made the material supervisory 
determination under review in effect at the time the material 
supervisory determination was made.
``(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 and shall bind the agency whose 
supervisory determination was the subject of the review and the 
financial institution requesting the review.
``(e) Referral of Violations.--If the Board, in carrying out this 
section, determines that a financial institution has violated a law or 
regulation, the Board shall refer such determination to the applicable 
Federal financial institutions regulatory agency.
``(f) Annual Report.--
``(1) In general.--The Board shall report annually to the 
Committee on Financial Services of the House of 
Representatives, the Committee on Banking, Housing, and Urban 
Affairs of the Senate, and the Council on actions taken under 
this section, including the types of issues that the Board has 
reviewed and the results of those reviews, including 
information 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 confidential supervisory information or 
privileged information shared by financial institutions, and 
shall anonymize any un-redacted information that could, in the 
aggregate, identify a financial institution.
``(g) Retaliation Prohibited.--
``(1) In general.--A Federal financial institutions 
regulatory agency may not--
``(A) retaliate against a financial institution, 
including service providers, or any institution-
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 institution-
affiliated party on the basis that an appeal under this 
section is pending under this section.
``(2) Retaliation.--For purposes of this subsection, 
retaliation includes delaying consideration of, or withholding 
approval of, any request, notice, or application that otherwise 
would have been approved, but for the exercise of a financial 
institution's rights under this section.
``(h) Rulemaking.--The Board shall issue rules to establish 
procedures for hearings described under this section, including that--
``(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 person 
participating in the hearing;
``(4) the hearing shall not be governed by the Federal 
Rules of Evidence; and
``(5) the Board shall have a verbatim transcript of the 
hearing prepared.
``(i) Safety and Soundness Exception.--The appeal of a material 
supervisory determination by a financial institution under this section 
shall not affect the authority of a Federal financial institutions 
regulatory agency during 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 financial 
institutions regulatory agency determines that such enforcement or 
action is necessary to ensure the immediate safety and soundness of the 
financial institution.''.
(e) Additional Amendments.--
(1) Regulatory appeals process, ombudsman, and alternative 
dispute resolution.--
(A) In general.--Section 309 of the Riegle 
Community Development and Regulatory Improvement Act of 
1994 (12 U.S.C. 4806) is amended--
(i) in the heading, by striking 
``regulatory appeals process, ombudsman,'' and 
inserting ``ombudsman'' (and by conforming the 
item relating 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 
redesignated--
(I) in paragraph (2)--
(aa) in subparagraph (B), 
by striking ``and'' at the end;
(bb) in subparagraph (C), 
by striking the period and 
inserting ``; and''; and
(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 
following:
``(6) Retaliation.--For purposes of this subsection, 
retaliation includes delaying consideration of, or withholding 
approval of, any request, notice, or application that otherwise 
would have been approved, but for the exercise of a financial 
institution'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 attention 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, notices, 
or filings on the grounds of a supervisory or 
compliance concern, regardless of whether that 
concern has been cited as a basis for a 
material supervisory determination or matter 
requiring attention in an examination report, 
provided that the conduct at issue did not 
involve violation of any criminal law; and''.
(B) Effect.--Nothing in this subsection affects the 
authority of a Federal banking agency (as defined in 
section 3 of the Federal Deposit Insurance Act (12 
U.S.C. 1813)) 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 Administration'' each place that term appears.
(3) Federal financial institutions examination council 
act.--The Federal Financial Institutions 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 inserting 
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 Financial 
Protection for purposes of sections 1012 through 
1015;''; and
(ii) in paragraph (3), by striking the 
semicolon at the end and inserting ``, except 
that for purposes of sections 1013 through 
1016, the term `financial institution' 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 Protection Bureau'' and 
inserting ``Bureau of Consumer Financial Protection''; 
and
(C) in section 1005 (12 U.S.C. 3304)--
(i) by striking ``One-fifth'' and inserting 
``One-fourth''; and
(ii) by inserting ``described under section 
1003(1)(A)'' after ``agencies''.
(f) Election of Forum for Review of Supervisory Enforcement.--
Section 8 of the Federal Deposit Insurance Act (12 U.S.C. 1818) is 
amended--
(1) in subsection (b), by adding at the end the following:
``(11) Hearing.--With respect to any notice properly issued 
and served upon a depository institution or institution-
affiliated party under this subsection, such depository 
institution or institution-affiliated party shall be afforded a 
hearing before--
``(A) the appropriate Federal banking agency; or
``(B) if such institution or person submits a 
request within 20 days after the issuance of the 
notice, the appropriate United States district court, 
and that court shall have jurisdiction to adjudicate 
all claims and requested remedies stated in the notice 
of charges, including those authorized under this 
subsection.'';
(2) in subsection (e), by adding at the end the following:
``(8) Hearing.--With respect to any notice properly issued 
and served upon an institution-affiliated party under this 
subsection, such institution-affiliated party shall be afforded 
a hearing before--
``(A) the appropriate Federal banking agency; or
``(B) if such party submits a request for such 
hearing and forum within 20 days after the issuance of 
the notice, the appropriate United States district 
court, and that court shall have jurisdiction to 
adjudicate all claims and requested remedies stated in 
the notice, including those authorized under this 
subsection.'';
(3) in subsection (h)--
(A) in paragraph (1), by striking ``(other than the 
hearing provided for in subsection (g)(3) of this 
section)'' and inserting ``(other than the hearing 
provided for in subsection (b)(11)(B), (e)(8)(B), 
(g)(3), or (i)(2)(H)(ii))''; and
(B) by adding at the end the following:
``(4) Any hearing provided for in subsection (b)(11)(B), (e)(8)(B), 
or (i)(2)(H)(ii) shall be subject to the jurisdiction, powers, and 
equitable authority of the district court and be governed by the 
Federal Rules of Civil Procedure and the Federal Rules of Evidence.
``(5) Any final decision of a United States district court made 
pursuant to a respondent's election under subsection (b)(11)(B), 
(e)(8)(B), or (i)(2)(H)(ii) shall be reviewable in the appropriate 
court of appeals in the same manner and to the same extent as any other 
civil action to which the United States is a party.'';
(4) in subsection (i)(2)--
(A) by amending subparagraph (E)(ii) to read as 
follows:
``(ii) Finality of assessment.--If, with 
respect to any assessment under clause (i), a 
hearing is not requested or an election is not 
made and timely noticed pursuant to 
subparagraph (H) within the period of time 
allowed under such subparagraph, the assessment 
shall constitute a final and unappealable 
order.'';
(B) by amending subparagraph (H) to read as 
follows:
``(H) Hearing.--The insured depository institution 
or institution-affiliated party against whom any 
penalty is assessed under this paragraph shall be 
afforded a hearing before--
``(i) an agency, if such institution or 
person submits a request for such hearing 
within 20 days after the issuance of the notice 
of assessment; or
``(ii) the appropriate United States 
district court, if such institution or person 
submits a request for such hearing and forum 
within 20 days after the issuance of the notice 
of assessment.''; and
(C) by amending subparagraph (I)(ii) to read as 
follows:
``(ii) Appropriateness of penalty not 
reviewable.--In any civil action under clause 
(i), except a civil action tried in a United 
States district court pursuant to subsection 
(b)(11)(B), (e)(8)(B), or (i)(2)(H)(ii), the 
validity and appropriateness of the penalty 
shall not be subject to review.''; and
(5) by adding at the end the following:
``(x) Savings Clause.--Nothing in subsection (b)(11)(B), (e)(8)(B), 
or (i)(2)(H)(ii) shall be construed to--
``(1) limit the authority of a Federal banking agency to 
initiate an administrative enforcement action; or
``(2) impair the validity of any consent order.''.

SEC. 303. SUPERVISORY MODIFICATIONS FOR APPROPRIATE RISK-BASED TESTING.

(a) Examination Relief for Certain Well Managed and Well 
Capitalized Financial Institutions.--
(1) Insured depository institutions.--Section 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 insured depository 
institution with $6,000,000,000 or less in consolidated 
assets:
``(i) Alternating limited-scope 
examinations.--After an insured depository 
institution receives a full-scope, on-site 
examination from the appropriate Federal 
banking agency, the next examination of the 
insured depository institution by the 
appropriate Federal banking agency shall be a 
limited-scope examination, as determined by the 
appropriate Federal banking agency.
``(ii) Combined examinations.--If an 
insured depository institution is otherwise 
subject to separate safety and soundness 
examinations, consumer compliance examinations, 
and information technology and cybersecurity 
examinations, the appropriate Federal banking 
agency shall, upon request of the insured 
depository institution, combine two or three 
such examinations, as specified by the insured 
depository institution, and carry them out at 
the same time.
``(B) Exception.--Subparagraph (A) shall not apply 
to an insured depository institution if--
``(i) the insured depository institution is 
currently subject to a formal enforcement 
proceeding or order by the Corporation 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), including, with respect to an insured 
depository institution described under subparagraph 
(A), to--
``(i) establish procedures for the limited-
scope examinations described in subparagraph 
(A)(i);
``(ii) establish procedures for reviewing 
insured depository institutions described under 
subparagraph (A), that--
``(I) experience material changes 
in financial condition or operational 
risk profile between scheduled 
examinations; or
``(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 insured 
depository institutions and reducing 
unnecessary regulatory burdens while 
maintaining sufficient oversight to ensure the 
continued safety and soundness of the insured 
depository institutions and compliance with all 
applicable laws and regulations.
``(D) Rule of construction.--Nothing in this 
paragraph may be construed to limit the authority of a 
Federal banking agency to conduct 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, 
reviews, or examinations are necessary to ensure safety 
and soundness or compliance with applicable laws.
``(E) Definitions.--In this paragraph:
``(i) Consumer compliance examination.--The 
term `consumer compliance examination' means an 
examination to assess compliance with the 
requirements of Federal consumer financial law 
(as such term is defined in section 1002 of the 
Consumer 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 managed, and the institution's 
composite condition was found to be 
satisfactory or outstanding.''.
(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 union with 
$6,000,000,000 or less in consolidated assets:
``(A) Alternating limited-scope examinations.--
After an insured credit union receives 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 separate safety and 
soundness examinations, consumer compliance 
examinations, and information technology and 
cybersecurity examinations, the National Credit Union 
Administration shall, upon request of the insured 
credit union, combine two or three such examinations, 
as specified 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.
``(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 respect 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 insured 
credit unions that--
``(i) experience material changes in 
financial condition or operational risk profile 
between scheduled examinations; or
``(ii) have failed to comply with Federal 
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.
``(4) Rule of construction.--Nothing in this subsection may 
be construed to limit the authority of the National Credit 
Union Administration to conduct off-site monitoring, targeted 
reviews, or additional full-scope, on-site examinations of an 
insured credit union if the National Credit Union 
Administration 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 examination.--The term 
`consumer compliance examination' means an examination 
to assess compliance with the requirements of Federal 
consumer financial law (as such term is defined in 
section 1002 of the Consumer Financial Protection 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 managed' means that, when 
the credit union was most recently examined by the 
National Credit Union Administration, the credit union 
was 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.--Section 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 following:
``(12) Examination practices.--With respect to on-site 
examination of an insured depository institution 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 examination;
``(C) make every effort, to the maximum extent 
practicable, to schedule the examination at a time that 
is convenient for the institution; and
``(D) to the maximum extent practicable, give the 
institution advance notice of issues expected to be 
covered in the examination.
``(13) Report.--In its annual report to Congress, 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 examiners, 
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:
``(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 significant 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 Administration's 
examination practices with respect to insured credit unions 
with less than $6,000,000,000 in total assets, including--
``(A) the average experience of examiners, 
including the average number of years of examiner 
experience of those who lead on-site examinations;
``(B) the average number of examiners utilized; and
``(C) the average amount of time the Administration 
spends visiting such credit unions for on-site 
examinations.''.

SEC. 304. TAILORED REGULATORY UPDATES FOR SUPERVISORY 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. FINANCIAL INTEGRITY AND REGULATION MANAGEMENT.

(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 institutions;
(2) all federally legal businesses and law-abiding citizens 
regardless of political ideology should have equal opportunity 
to obtain financial services and should not face unlawful 
discrimination in obtaining such services;
(3) financial service providers are private entities 
entitled to provide services to whichever customers 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 factors free from 
unlawful prejudice or political influence;
(5) the use of reputational risk in supervisory frameworks 
encourages Federal banking agencies to regulate depository 
institutions based on the subjective view of negative publicity 
and provides cover for the agencies to implement their own 
political agenda unrelated to the safety and soundness of a 
depository institution;
(6) Federal banking agencies have in fact used reputational 
risk to limit access of federally legal businesses and law-
abiding citizens to financial services 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 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 ``depository 
institution''--
(A) has the meaning given the term in section 3 of 
the Federal Deposit Insurance Act (12 U.S.C. 1813);
(B) includes a depository institution holding 
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 Federal 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 section 3 of 
the Federal Deposit Insurance Act (12 U.S.C. 1813); and
(B) includes--
(i) the National Credit Union 
Administration; and
(ii) the Bureau of Consumer Financial 
Protection.
(3) Foreign terrorist organization.--The term ``foreign 
terrorist organization'' means a foreign organization that is 
designated by the Secretary of State in accordance with section 
219 of the Immigration and Nationality Act (8 U.S.C. 1189).
(4) Reputational risk.--The term ``reputational risk'' 
means the potential that negative 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 
adversely impact the depository institution. The previous 
sentence does not apply to negative publicity or negative 
public opinion regarding an institution's business practices 
where such practices involve unlawful 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 support for acts of international terrorism, for 
purposes of--
(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 Control Act 
(22 U.S.C. 2780(d)); or
(D) any other provision of law.
(c) Removal of Reputational Risk as a Consideration in the 
Supervision of Depository Institutions.--Each Federal banking agency 
shall remove from any guidance, rule, examination manual, or similar 
document established by the agency any reference to reputational risk, 
or any term substantially similar, regarding the supervision of 
depository institutions such that reputational risk, or any term 
substantially similar, is no longer taken into consideration by the 
Federal banking agency when examining and supervising a depository 
institution.
(d) Prohibition.--No Federal banking agency may engage in any 
activity concerning or related to the regulation, supervision, or 
examination of the reputational risk, or any term substantially 
similar, or the management thereof, of a depository institution, 
including--
(1) establishing any rule, regulation, requirement, 
standard, or supervisory expectation concerning or related to 
the reputational risk, or any term substantially similar, or 
the management thereof, of a depository institution whether 
binding or not;
(2) conducting any examination, assessment, data 
collection, or other supervisory exercise concerning or related 
to reputational risk, or any term substantially similar, or the 
management thereof, of a depository institution;
(3) issuing any examination finding, supervisory criticism, 
or other supervisory or examination communication concerning or 
related to reputational risk, or any term substantially 
similar, or the management thereof, of a depository 
institution;
(4) making any supervisory ratings decision or 
determination that is based, in whole or in part, on any matter 
concerning or related to reputational risk, or any term 
substantially similar, or the management thereof, of a 
depository institution; and
(5) taking any formal or informal enforcement action that 
is based, in whole or in part, on any matter concerning or 
related to reputational risk, or 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 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 that--
(1) confirms implementation of this section; and
(2) describes any changes made to internal policies as a 
result of this section.

TITLE IV--REGULATORY ACCOUNTABILITY AND TRANSPARENCY

SEC. 401. FDIC BOARD ACCOUNTABILITY.

Section 2 of the Federal Deposit Insurance Act (12 U.S.C. 1812) is 
amended--
(1) by striking ``Consumer Financial Protection Bureau'' 
each place such term appears and inserting ``Bureau of Consumer 
Financial Protection'';
(2) by amending subsection (a)(1)(C) to read as follows:
``(C) 3 of whom shall be appointed by the 
President, by and with the advice and consent 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
(3) 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.--Notwithstanding any other 
provision of this Act, no person shall serve as a member for 
more than twelve years in total.''.

SEC. 402. STOP AGENCY FIAT ENFORCEMENT OF GUIDANCE.

(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 applicable statutes or regulations, 
noncompliance with this guidance does not conclusively establish a 
violation of applicable law.''.
(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 Corporation.
(E) The Federal Housing Finance Agency.
(F) The Board of Governors of the Federal Reserve 
System.
(G) The National Credit Union Administration.
(H) The Office of the Comptroller of the Currency.
(I) The Securities and Exchange Commission.
(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 statutory, regulatory, or technical issue, 
or an interpretation of a statute or regulation, but does not 
include--
(A) a rule promulgated pursuant to notice and 
comment under section 553 of title 5, United States 
Code;
(B) a rule exempt from rulemaking requirements 
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 adjudication 
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.

SEC. 403. REGULATORY EFFICIENCY, VERIFICATION, ITEMIZATION, AND 
ENHANCED WORKFLOW.

Section 2222 of the Economic Growth and Regulatory 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'' 
and inserting ``Federal financial institutions regulatory 
agencies'';
(3) in subsection (a)--
(A) by striking ``represented on the Council''; and
(B) by striking ``once every 10 years'' and 
inserting ``once every 8 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 inserting the 
following:
``(1) Solicitation of public comment.--In conducting''; and
(C) by adding at the end the following:
``(2) Internal review of cumulative impact.--Each Federal 
financial institutions regulatory agency shall conduct an 
internal review of the cumulative impact of regulations issued 
by the Federal financial institutions regulatory agency that--
``(A) assesses the effects of such regulations on 
consumers' access to financial products and services;
``(B) assesses the effects of such regulations on 
the availability of financial products and services to 
financial and nonfinancial firms;
``(C) assesses the impact of such regulations on 
credit availability and financial market liquidity in 
United States financial markets;
``(D) assesses the balance of benefits and costs of 
such regulations with respect to the safety and 
soundness of the United States financial system and 
overall economic activity in the United States;
``(E) to the extent practicable, quantifies the 
direct and indirect economic costs imposed by such 
regulations; and
``(F) includes recommendations to streamline or 
eliminate duplicative, outdated, and unnecessarily 
burdensome regulations.'';
(5) in subsection (c)--
(A) by striking ``subsection (b)(2)'' and inserting 
``subsection (b)(1)(B), and the internal review under 
subsection (b)(2),''; and
(B) by striking ``once every 10 years'' and 
inserting ``once every 8 years'';
(6) in subsection (e)--
(A) in paragraph (1), by striking ``and'' at the 
end;
(B) by redesignating paragraph (2) as paragraph 
(3);
(C) by inserting after paragraph (1) the following:
``(2) a summary of the findings and determinations of each 
Federal financial institutions regulatory agency of the 
internal review conducted by the Federal financial institutions 
regulatory agency under subsection (b)(2); and''; and
(D) in paragraph (3), as so redesignated, by 
striking ``the regulatory burdens associated with such 
issues by regulation'' and inserting ``the regulatory 
burdens associated with the issues identified by public 
comments received by the Council and the Federal 
financial institutions regulatory agencies, as well as 
the regulatory burdens identified by each Federal 
financial institutions regulatory agency through the 
internal reviews conducted under subsection (b)(2), by 
regulation''; and
(7) by adding at the end the following:
``(f) Federal Financial Institutions Regulatory Agency Defined.--
The term `Federal financial institutions regulatory agency' has the 
meaning given that term in section 1003 of the Federal Financial 
Institutions Examination Council Act of 1978 (12 U.S.C. 3302).''.

SEC. 404. AMERICAN FINANCIAL INSTITUTION REGULATORY SOVEREIGNTY AND 
TRANSPARENCY.

(a) Annual Reporting on Interactions Between Federal Banking 
Supervisory Agencies and Global Financial Regulatory or Supervisory 
Forums.--
(1) Board of governors of the federal reserve system.--The 
seventh undesignated paragraph of section 10 of the Federal 
Reserve Act (12 U.S.C. 247) is amended--
(A) by striking ``The Board'' and inserting the 
following:
``(7) Annual report.--
``(A) In general.--The Board'';
(B) by striking the second sentence; and
(C) by adding at the end the following:
``(B) Interactions with global financial regulatory 
or supervisory forums.--The report required under 
subparagraph (A) shall include a description of the 
Board's interactions with global financial regulatory 
or supervisory forums, including--
``(i) a description of the financial 
regulatory or supervisory standard-setting 
issues under discussion at the global financial 
regulatory or supervisory forums during the 
period covered by the report;
``(ii) a description of the rationale, 
objectives, and potential effects that rules 
proposed, rules under consideration, final 
rules adopted, guidance proposed, guidance 
under consideration, final guidance adopted, or 
any other similar actions discussed at the 
global financial regulatory or supervisory 
forums could have, including an economic impact 
analysis on whether the expected costs would be 
at least offset by the expected benefits 
related to economic, national security, 
financial stability, or other national 
interests;
``(iii) a description of the positions 
taken by representatives of the Board at the 
global financial regulatory or supervisory 
forums during the period covered by the report; 
and
``(iv) a description of the efforts by the 
Board to increase transparency at global 
financial regulatory or supervisory forums 
during the period covered by the report.
``(C) Global financial regulatory or supervisory 
forum defined.--
``(i) In general.--In this paragraph, the 
term `global financial regulatory or 
supervisory forum' means any association or 
union of nations through or by which two or 
more foreign authorities engage in some aspect 
of their conduct of international affairs 
regarding financial supervision and regulation, 
including--
``(I) the Bank for International 
Settlements;
``(II) the Basel Committee on 
Banking Supervision;
``(III) the Financial Stability 
Board;
``(IV) the International 
Association of Insurance Supervisors; 
and
``(V) the Network of Central Banks 
and Supervisors for Greening the 
Financial System.
``(ii) Exception.--The term `global 
financial regulatory or supervisory forum' does 
not include--
``(I) international financial 
institutions, as defined in section 
1701(c)(2) of the International 
Financial Institutions Act (22 U.S.C. 
262r(c)(2)); or
``(II) any international 
organization with respect to which the 
Board participates pursuant to a treaty 
to which the United States is a 
party.''.
(2) Office of the comptroller of the currency.--
(A) In general.--The second section 333 of the 
Revised Statutes of the United States (12 U.S.C. 14; 
relating to an annual report) is amended to read as 
follows:

``SEC. 333. REPORT OF COMPTROLLER.

``(a) In General.--The Comptroller of the Currency shall make an 
annual report to Congress.
``(b) Interactions With Global Financial Regulatory or Supervisory 
Forums.--The report required under subsection (a) shall include a 
description of the Comptroller's interactions with global financial 
regulatory or supervisory forums, including--
``(1) a description of the financial regulatory or 
supervisory standard-setting issues under discussion at the 
global financial regulatory or supervisory forums during the 
period covered by the report;
``(2) a description of the rationale, objectives, and 
potential effects that rules proposed, rules under 
consideration, final rules adopted, guidance proposed, guidance 
under consideration, final guidance adopted, or any other 
similar actions discussed at the global financial regulatory or 
supervisory forums could have, including an economic impact 
analysis on whether the expected costs would be at least offset 
by the expected benefits related to economic, national 
security, financial stability, or other national interests; and
``(3) a description of the positions taken by 
representatives of the Comptroller at the global financial 
regulatory or supervisory forums during the period covered by 
the report; and
``(4) a description of the efforts by the Comptroller to 
increase transparency at global financial regulatory or 
supervisory forums during the period covered by the report.
``(c) Global Financial Regulatory or Supervisory Forum Defined.--
``(1) In general.--In this section, the term `global 
financial regulatory or supervisory forum' means any 
association or union of nations through or by which two or more 
foreign authorities engage in some aspect of their conduct of 
international affairs regarding financial supervision and 
regulation, including--
``(A) the Bank for International Settlements;
``(B) the Basel Committee on Banking Supervision;
``(C) the Financial Stability Board;
``(D) the International Association of Insurance 
Supervisors; and
``(E) the Network of Central Banks and Supervisors 
for Greening the Financial System.
``(2) Exception.--The term `global financial regulatory or 
supervisory forum' does not include--
``(A) international financial institutions, as 
defined in section 1701(c)(2) of the International 
Financial Institutions Act (22 U.S.C. 262r(c)(2)); or
``(B) any international organization with respect 
to which the Comptroller participates pursuant to a 
treaty to which the United States is a party.''.
(B) Technical correction.--Chapter nine of title 
VII of the Revised Statutes of the United States is 
amended--
(i) by redesignating the first section 333 
(12 U.S.C. 14a; relating to data standards) as 
section 332;
(ii) by moving such section so as to appear 
after section 331; and
(iii) in the table of contents of such 
chapter, by amending the item relating to 
section 332 to read as follows:

``332. Data standards; open data publication.''.
(3) Federal deposit insurance corporation.--Section 17(a) 
of the Federal Deposit Insurance Act (12 U.S.C. 1827(a)) is 
amended by striking paragraph (3) and inserting the following:
``(3) Interactions with global financial regulatory or 
supervisory forums.--The report required under paragraph (1) 
shall include a description of the Corporation's interactions 
with global financial regulatory or supervisory forums, 
including--
``(A) a description of the financial regulatory or 
supervisory standard-setting issues under discussion at 
the global financial regulatory or supervisory forums 
during the period covered by the report;
``(B) a description of the rationale, objectives, 
and potential effects that rules proposed, rules under 
consideration, final rules adopted, guidance proposed, 
guidance under consideration, final guidance adopted, 
or any other similar actions discussed at the global 
financial regulatory or supervisory forums could have, 
including an economic impact analysis on whether the 
expected costs would be at least offset by the expected 
benefits related to economic, national security, 
financial stability, or other national interests;
``(C) a description of the positions taken by 
representatives of the Corporation at the global 
financial regulatory or supervisory forums during the 
period covered by the report; and
``(D) a description of the efforts by the 
Corporation to increase transparency at global 
financial regulatory or supervisory forums during the 
period covered by the report.
``(4) Global financial regulatory or supervisory forum 
defined.--
``(A) In general.--In this subsection, the term 
`global financial regulatory or supervisory forum' 
means any association or union of nations through or by 
which two or more foreign authorities engage in some 
aspect of their conduct of international affairs 
regarding financial supervision and regulation, 
including--
``(i) the Bank for International 
Settlements;
``(ii) the Basel Committee on Banking 
Supervision;
``(iii) the Financial Stability Board;
``(iv) the International Association of 
Insurance Supervisors; and
``(v) the Network of Central Banks and 
Supervisors for Greening the Financial System.
``(B) Exception.--The term `global financial 
regulatory or supervisory forum' does not include--
``(i) international financial institutions, 
as defined in section 1701(c)(2) of the 
International Financial Institutions Act (22 
U.S.C. 262r(c)(2)); or
``(ii) any international organization with 
respect to which the Corporation participates 
pursuant to a treaty to which the United States 
is a party.''.
(b) Biannual Congressional Testimony on Interactions With Global 
Financial Regulatory or Supervisory Forums.--Paragraph (12) of section 
10 of the Federal Reserve Act (12 U.S.C. 247b) is amended by inserting 
before the period at the end the following: ``and with respect to the 
conduct of interactions at global financial regulatory or supervisory 
forums (as defined in paragraph (7)(C))''.

TITLE V--STRENGTHENING LOCAL BANK FUNDING

SEC. 501. BRINGING THE DISCOUNT WINDOW INTO THE 21ST CENTURY.

Section 10 of the Federal Reserve Act (12 U.S.C. 241 et seq.) is 
amended by inserting after paragraph (10) the following:
``(11) Review of discount window operations.--
``(A) In general.--Not later than 60 days after the 
date of enactment of this paragraph, the Board of 
Governors shall commence a review of the discount 
window lending programs of the Federal reserve banks 
(the `discount window'), and shall complete such review 
not later than 240 days after the date of enactment of 
this paragraph.
``(B) Contents.--The review required by 
subparagraph (A) shall include a consideration of--
``(i) the effectiveness of the discount 
window in providing liquidity to financial 
institutions, including in times of financial 
stress;
``(ii) whether the technology 
infrastructure, including means of 
communications, are sufficient to support the 
timely provision of liquidity, including in 
times of financial stress;
``(iii) the effectiveness of cybersecurity 
measures implemented with respect to discount 
window operations;
``(iv) the effectiveness of communications 
between Federal reserve banks, financial 
institutions, the Board of Governors, the 
Federal Deposit Insurance Corporation, the 
Comptroller of the Currency, and the Secretary 
of the Treasury regarding discount window 
operations;
``(v) the effectiveness of the Board of 
Governors in providing oversight of the 
discount window and in ensuring consistent 
access to the discount window across the 
Federal Reserve System;
``(vi) how the discount window interacts 
with other providers of liquidity, including 
the Federal Home Loan Banks, during both normal 
operations and times of financial distress;
``(vii) the effectiveness of existing 
discount window operating hours and whether 
such hours should be expanded, taking into 
account the interaction between discount window 
operating hours and the operating hours of 
payment systems of the Federal reserve banks, 
such as the Fedwire Funds Service and FedNow 
Service;
``(viii) the impact of mobile banking and 
instant communications technology on depositor 
behavior and liquidity risk posed to financial 
institutions, including how the discount window 
can--
``(I) help financial institutions 
better respond to rapid liquidity 
shortfalls; and
``(II) prevent broader financial 
instability; and
``(ix) the effectiveness of the discount 
window in light of the stigma associated with 
its usage, ways to reduce such stigma, and ways 
to improve access, operational efficiency, 
transparency, and timeliness of the process for 
financial institutions seeking advances, 
including on the pricing and other terms of 
such advances.
``(C) Remediation plan.--After the Board of 
Governors completes the review required by subparagraph 
(A), the Board of Governors, in consultation with the 
Federal reserve banks, shall--
``(i) identify deficiencies with the 
discount window and areas for enhancing 
discount window effectiveness; and
``(ii) develop a written plan to remediate 
the identified deficiencies and implement the 
identified enhancements, which shall include--
``(I) an identification of actions 
that will be taken to enhance discount 
window effectiveness and remediate 
identified deficiencies;
``(II) timelines and milestones for 
implementing the plan and measures to 
demonstrate how the implemented 
improvements will be maintained on an 
ongoing basis; and
``(III) measures of managing and 
controlling any deficiencies and 
current operations until the plan is 
implemented in full.
``(D) Report to congress on review and plan.--
``(i) In general.--Not later than 365 days 
after the date of enactment of this paragraph, 
the Board of Governors shall submit a report to 
the Committee on Financial Services of the 
House of Representatives and the Committee on 
Banking, Housing, and Urban Affairs of the 
Senate containing--
``(I) the findings of the review 
required by subparagraph (A); and
``(II) the remediation plan 
required by subparagraph (C).
``(ii) Consultation.--Before submitting the 
report required by clause (i), the Board of 
Governors shall--
``(I) provide a copy of the 
proposed report to the Comptroller of 
the Currency, the Federal Deposit 
Insurance Corporation, and the 
Secretary of the Treasury; and
``(II) provide the Comptroller of 
the Currency, the Federal Deposit 
Insurance Corporation, and the 
Secretary of the Treasury with an 
opportunity to provide feedback on the 
report.
``(iii) Testimony.--The Chairman of the 
Board of Governors shall, at the semi-annual 
hearing required under section 2B, testify with 
respect to the contents of the report required 
under this subparagraph.
``(E) Annual reports to congress.--
``(i) Reports by the board.--The Board of 
Governors shall submit an annual report to the 
Committee on Financial Services of the House of 
Representatives and the Committee on Banking, 
Housing, and Urban Affairs of the Senate 
containing a review of the effectiveness of 
discount window operations and a progress 
report on the actions taken to implement the 
identified enhancements described in 
subparagraph (C).
``(ii) Reports by the inspector general.--
The Inspector General of the Board of Governors 
of the Federal Reserve System and the Bureau of 
Consumer Financial Protection shall submit an 
annual report to the Committee on Financial 
Services of the House of Representatives and 
the Committee on Banking, Housing, and Urban 
Affairs of the Senate containing a report on 
the progress of the Board of Governors in 
implementing the remediation plan required by 
subparagraph (C).
``(F) Confidential report information.--Any report 
required under this paragraph may contain a 
confidential annex containing information that, if made 
public, could--
``(i) impact monetary policy, financial 
stability, or cybersecurity; or
``(ii) significantly endanger the safety 
and soundness of any financial institution.
``(G) Repeal.--This paragraph shall be repealed on 
the date on which the Board of Governors notifies the 
Congress and publishes on a public website of the Board 
of Governors that the remediation plan required under 
subparagraph (C) has been fully implemented.''.

SEC. 502. KEEPING DEPOSITS LOCAL.

(a) Amount of Reciprocal Deposits That Are Not Considered To Be 
Funds Obtained by or Through a Deposit Broker.--Section 29(i) of the 
Federal Deposit Insurance Act (12 U.S.C. 1831f(i)) is amended by 
striking paragraph (1) and inserting the following:
``(1) In general.--The sum of the following amounts of 
reciprocal deposits of an agent institution shall not be 
considered to be funds obtained, directly or indirectly, by or 
through a deposit broker:
``(A) An amount equal to 50 percent of the portion 
of the total liabilities of the agent institution that 
is less than or equal to $1,000,000,000.
``(B) An amount equal to 40 percent of the portion, 
if any, of the total liabilities of the agent 
institution that is greater than $1,000,000,000, but 
less than or equal to $10,000,000,000.
``(C) An amount equal to 30 percent of the portion, 
if any, of the total liabilities of the agent 
institution that is greater than $10,000,000,000, but 
less than or equal to $250,000,000,000.''.
(b) Definition of Agent Institution.--Section 29(i) of the Federal 
Deposit Insurance Act (12 U.S.C. 1831f(i)) is amended--
(1) in paragraph (2)(A)--
(A) in clause (i), by striking subclause (I) and 
inserting the following: ``(I) when most recently 
examined under section 10(d) was assigned a CAMELS 
rating of 1, 2, or 3 under the Uniform Financial 
Institutions Rating System (or an equivalent rating 
under a comparable rating system); and'';
(B) by redesignating clauses (ii) and (iii) as 
clauses (iii) and (iv), respectively; and
(C) by inserting after clause (i) the following:
``(ii) has not yet been examined under 
section 10(d) and the deposits of which first 
became insured under this Act during the 
current calendar year or during the immediately 
preceding calendar year;''; and
(2) by adding at the end the following:
``(3) Reservation of authority.--If an insured depository 
institution ceases to be an agent institution because it no 
longer satisfies any of the criteria in paragraph (2)(A), the 
Corporation may, on a case-by-case basis and upon application, 
provide a waiver to permit the institution to continue to 
consider some or all of the deposits previously subject to the 
exception under paragraph (1) as continuing to be subject to 
the exception under paragraph (1), for a specific or indefinite 
period of time, if the Corporation determines that failure to 
grant such a waiver would negatively impact the safety and 
soundness of the insured depository institution.''.
(c) Reciprocal Deposits Study.--
(1) In general.--The Federal Deposit Insurance Corporation, 
in consultation with the Board of Governors of the Federal 
Reserve System, shall carry out a study on reciprocal deposits.
(2) Contents.--The study required under paragraph (1) shall 
include--
(A) an analysis of how reciprocal deposits have 
performed since 2018, which shall include--
(i) the use of quantitative and qualitative 
data;
(ii) a breakdown of the usage of reciprocal 
deposits by size of insured depository 
institution;
(iii) the usage of reciprocal deposits 
during periods of stress; and
(iv) an analysis, to the extent 
practicable, of end-user depositors, such as 
municipalities, businesses, and non-profit 
organizations, that drive demand for reciprocal 
products;
(B) an analysis, to the extent practicable, of how 
reciprocal deposits compare to other deposit 
arrangements; and
(C) an analysis of the benefits and potential risks 
of reciprocal deposits.
(3) Report.--Not later than 6 months after the date of 
enactment of this Act, the Federal Deposit Insurance 
Corporation shall issue a report to the Committee on Financial 
Services of the House of Representatives and the Committee on 
Banking, Housing, and Urban Affairs of the Senate containing 
all findings and determinations made in carrying out the study 
required under paragraph (1).

SEC. 503. COMMUNITY BANK DEPOSIT ACCESS.

(a) In General.--Section 29 of the Federal Deposit Insurance Act 
(12 U.S.C. 1831f) is amended by adding at the end the following:
``(j) Limited Exception for Custodial Deposits.--
``(1) In general.--Custodial deposits of an eligible 
institution shall not be considered to be funds obtained, 
directly or indirectly, by or through a deposit broker to the 
extent that the total amount of such custodial deposits does 
not exceed an amount equal to 20 percent of the total 
liabilities of the eligible institution.
``(2) Reservation of authority.--If an insured depository 
institution ceases to be an eligible institution because it no 
longer satisfies any of the criteria in paragraph (3)(B), the 
Corporation may, on a case-by-case basis and upon application, 
provide a waiver to permit the institution to continue to be 
treated as an eligible institution for purposes of paragraph 
(1), for a specific or indefinite period of time, if the 
Corporation determines that failure to grant such a waiver 
would negatively impact the safety and soundness of the insured 
depository institution.
``(3) Definitions.--In this subsection:
``(A) Custodial deposit.--The term `custodial 
deposit' means a deposit that is not deposited at an 
insured depository institution in return for fees paid 
by the insured depository institution pursuant to an 
agreement with a third party and that would otherwise 
be considered to be obtained, directly or indirectly, 
by or through a deposit broker, if the deposit is 
deposited at 1 or more insured depository institutions, 
for the purpose of providing or maintaining deposit 
insurance for the benefit of a third party, by or 
through any of the following, each acting in a formal 
custodial or fiduciary capacity for the benefit of a 
third party:
``(i) An insured depository institution 
serving as agent, trustee, or custodian.
``(ii) A trust entity controlled by an 
insured depository institution serving as 
agent, trustee, or custodian.
``(iii) A State-chartered trust company 
serving as agent, trustee, or custodian.
``(iv) A plan administrator or investment 
advisor, acting in a formal custodial or 
fiduciary capacity for the benefit of a plan.
``(B) Eligible institution.--The term `eligible 
institution' means an insured depository institution 
that accepts custodial deposits, if the insured 
depository institution has less than $10,000,000,000 in 
total assets as reported on the consolidated report of 
condition and income as reported quarterly to the 
appropriate Federal banking agency and--
``(i)(I) when most recently examined under 
section 10(d) was assigned a composite rating 
of 1, 2, or 3 under the Uniform Financial 
Institutions Rating System (or an equivalent 
rating under a comparable rating system); and
``(II) is well capitalized;
``(ii) has not yet been examined under 
section 10(d) and the deposits of which first 
became insured under this Act during the 
current calendar year or during the immediately 
preceding calendar year; or
``(iii) has obtained a waiver pursuant to 
subsection (c).
``(C) Plan.--The term `plan' has the meaning given 
the term in section 3 of the Employee Retirement Income 
Security Act of 1974 (29 U.S.C. 1002).
``(D) Plan administrator.--The term `plan 
administrator' has the meaning given the term 
`administrator' in section 3 of the Employee Retirement 
Income Security Act of 1974 (29 U.S.C. 1002).
``(E) Well capitalized.--The term `well 
capitalized' has the meaning given the term in section 
38(b).''.
(b) Interest Rate Restriction.--Section 29 of the Federal Deposit 
Insurance Act (12 U.S.C. 1831f), as amended by subsection (a), is 
further amended by adding at the end the following:
``(k) Restriction on Interest Rate Paid on Certain Custodial 
Deposits.--
``(1) Definitions.--In this subsection--
``(A) the terms `custodial deposit', `eligible 
institution', and `well capitalized' have the meanings 
given those terms in subsection (j); and
``(B) the term `covered insured depository 
institution' means an insured depository institution 
that while acting as an eligible institution under 
subsection (j), accepts custodial deposits while not 
well capitalized.
``(2) Prohibition.--A covered insured depository 
institution may not pay a rate of interest on custodial 
deposits that are accepted while not well capitalized that, at 
the time the funds or custodial deposits are accepted, 
significantly exceeds the limit set forth in paragraph (3).
``(3) Limit on interest rates.--The limit on the rate of 
interest referred to in paragraph (2) shall be not greater 
than--
``(A) the rate paid on deposits of similar maturity 
in the normal market area of the covered insured 
depository institution for deposits accepted in the 
normal market area of the covered insured depository 
institution; or
``(B) the national rate paid on deposits of 
comparable maturity, as established by the Corporation, 
for deposits accepted outside the normal market area of 
the covered insured depository institution.''.

TITLE VI--PROMOTING BANK COMPETITION AND MERGER CLARITY

SEC. 601. BANK COMPETITION MODERNIZATION.

(a) In General.--Section 18(c) of the Federal Deposit Insurance Act 
(12 U.S.C. 1828(c)), as amended by section 604(c), is further amended--
(1) in paragraph (4)(C)--
(A) in clause (i), by striking ``or'' at the end;
(B) in clause (ii), by striking the period at the 
end and inserting ``; or''; and
(C) by adding at the end the following:
``(iii) the proposed merger transaction 
would result in an entity with less than 
$10,000,000,000 in assets.''; and
(2) by adding at the end the following:
``(16) For merger transactions resulting in institutions 
with less than $10,000,000,000 in assets.--
``(A) In general.--Notwithstanding paragraph (5), 
if a proposed merger transaction would result in an 
institution with less than $10,000,000,000 in assets, 
then the responsible agency shall not consider whether 
such merger transaction would--
``(i) result in a monopoly, or would be in 
furtherance of any combination or conspiracy to 
monopolize or to attempt to monopolize the 
business of banking in any part of the United 
States; and
``(ii) have the effect in any section of 
the country of substantially lessening 
competition, tending to create a monopoly, or 
in any other manner restraining trade.
``(B) Threshold adjustment.--
``(i) In general.--At the end of each year 
for which the nominal gross domestic product of 
the United States increases (a `covered year'), 
the Corporation shall adjust the dollar figures 
described in subparagraph (A) and paragraph 
(4)(C)(iii) by a percentage equal to the 
percentage increase (if any) between--
``(I) the nominal gross domestic 
product of the United States for the 
year, during 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 
product of the United States for the 
covered year.
``(ii) Determination of gdp.--In this 
paragraph, the Corporation shall use nominal 
gross domestic product statistics determined by 
the Bureau of Economic Analysis.''.
(b) For Bank Holding Companies.--Section 3(c) of the Bank Holding 
Company Act of 1956 (12 U.S.C. 1842(c)) is amended by adding at the end 
the following:
``(8) For proposed transactions resulting in companies with 
less than $10,000,000,000 in assets.--
``(A) In general.--Notwithstanding paragraph (1), 
if a proposed acquisition, merger, or consolidation 
under this section would result in a company with less 
than $10,000,000,000 in assets, then the Board shall 
not consider whether such acquisition, merger, or 
consolidation would--
``(i) result in a monopoly, or would be in 
furtherance of any combination or conspiracy to 
monopolize or to attempt to monopolize the 
business of banking in any part of the United 
States; and
``(ii) have the effect in any section of 
the country of substantially lessening 
competition, tending to create a monopoly, or 
in any other manner restraining trade.
``(B) Threshold adjustment.--
``(i) In general.--At the end of each year 
for which the nominal gross domestic product of 
the United States increases (a `covered year'), 
the Board shall adjust the dollar figure 
described in subparagraph (A) by a percentage 
equal to the percentage increase (if any) 
between--
``(I) the nominal gross domestic 
product of the United States for the 
year, during 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 
product of the United States for the 
covered year.
``(ii) Determination of gdp.--In this 
paragraph, the Board shall use nominal gross 
domestic product statistics determined by the 
Bureau of Economic Analysis.''.
(c) For Savings and Loan Holding Companies.--Section 10(e) of the 
Home Owners' Loan Act (12 U.S.C. 1467a(e)), as amended by section 
103(b), is further amended by adding at the end the following:
``(10) For proposed transactions resulting in companies 
with less than $10,000,000,000 in assets.--
``(A) In general.--Notwithstanding subparagraphs 
(A) and (B) of paragraph (2), if a proposed transaction 
under this section would result in a company with less 
than $10,000,000,000 in assets, then the Board shall 
not consider whether the transaction would--
``(i) result in a monopoly, or would be in 
furtherance of any combination or conspiracy to 
monopolize or to attempt to monopolize the 
savings and loan business in any part of the 
United States; and
``(ii) have the effect in any section of 
the country of substantially lessening 
competition, tending to create a monopoly, or 
in any other manner restraining trade.
``(B) Threshold adjustment.--
``(i) In general.--At the end of each year 
for which the nominal gross domestic product of 
the United States increases (a `covered year'), 
the Board shall adjust the dollar figure 
described in subparagraph (A) by a percentage 
equal to the percentage increase (if any) 
between--
``(I) the nominal gross domestic 
product of the United States for the 
year, during 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 
product of the United States for the 
covered year.
``(ii) Determination of gdp.--In this 
paragraph, the Board shall use nominal gross 
domestic product statistics determined by the 
Bureau of Economic Analysis.''.

SEC. 602. MERGER AGREEMENT APPROVALS CLARITY AND PREDICTABILITY.

(a) Study.--The Comptroller General of the United States shall 
carry out a study on the use of commitments, conditions, and other 
aspects of merger review procedures by Federal depository institution 
regulatory agencies in connection with insured depository institution 
merger applications. The study shall--
(1) include an evaluation of relevant quantifiable metrics;
(2) review the extent to which the use of commitments and 
conditions has aligned with statutory requirements, including a 
review of whether the use of commitments and conditions has 
been influenced by extrastatutory issues or considerations;
(3) consider the benefits and risks of utilizing different 
merger review approaches and procedures in compliance with the 
law; and
(4) include an evaluation of the impact of such merger 
review procedures and resulting approved mergers on safety and 
soundness, financial stability, competition, and the 
availability of financial products and services offered by 
insured depository institutions.
(b) Report.--Not later than 1 year after the date of enactment of 
this Act, the Comptroller General shall issue a report to the Committee 
on Financial Services of the House of Representatives and the Committee 
on Banking, Housing, and Urban Affairs of the Senate containing all 
findings and determinations made in carrying out the study required 
under subsection (a).
(c) Definitions.--In this section:
(1) Application.--The term ``application'' means an 
application, notice, or other similar request for permission 
submitted to a Federal depository institution regulatory 
agency.
(2) Federal depository institution regulatory agency.--The 
term ``Federal depository institution regulatory agency'' means 
the Board of Governors of the Federal Reserve System, the 
Comptroller of the Currency, the Federal Deposit Insurance 
Corporation, and the National Credit Union Administration 
Board.
(3) Insured depository institution.--The term ``insured 
depository institution''--
(A) has the meaning given that term in section 3 of 
the Federal Deposit Insurance Act (12 U.S.C. 1813); and
(B) means an insured credit union, as defined in 
section 101 of the Federal Credit Union Act (12 U.S.C. 
1752).
(4) Insured depository institution merger application.--The 
term ``insured depository institution merger application'' 
means an application with respect to the acquisition of an 
insured depository institution, its equity interests, its 
assets, or its deposits under--
(A) section 10(e) of the Home Owners' Loan Act (12 
U.S.C. 1467a(e));
(B) section 205(b) of the Federal Credit Union Act 
(12 U.S.C. 1785(b));
(C) section 7(j) of the Federal Deposit Insurance 
Act (12 U.S.C. 1817(j));
(D) section 18(c)(2) of the Federal Deposit 
Insurance Act (12 U.S.C. 1828(c)(2));
(E) section 3 of the Bank Holding Company Act of 
1956 (12 U.S.C. 1842); and
(F) section 4 of the Bank Holding Company Act of 
1956 (12 U.S.C. 1843).

SEC. 603. MERGER PROCESS REVIEW.

(a) Review.--Not later than 1 year after the date of enactment of 
this Act, and every 3 years thereafter, the Inspector General of each 
Federal depository institution regulatory agency shall review the 
Federal depository institution regulatory agency's merger review 
procedures, including record of timeliness and efficiency in reviewing 
and acting upon insured depository institution merger applications. The 
review shall--
(1) include an evaluation of relevant quantifiable metrics, 
including mean and median application processing times;
(2) identify sources of delay that may hinder the timely 
consummation of proposals that meet the relevant statutory 
factors;
(3) consider the benefits and risks of utilizing different 
merger review approaches and procedures in compliance with the 
law;
(4) include an evaluation of the impact of such merger 
review procedures and resulting approved mergers on safety and 
soundness, financial stability, competition, and the 
availability of financial products and services offered by 
insured depository institutions; and
(5) include specific recommendations to improve the merger 
review process, including timeliness and efficiency of 
application processing, consistent with the Federal depository 
institution regulatory agency's statutory responsibilities.
(b) Report.--Each Inspector General described under subsection (a) 
shall, at the conclusion of each review required under subsection (a), 
issue a report to the Committee on Financial Services of the House of 
Representatives and the Committee on Banking, Housing, and Urban 
Affairs of the Senate containing all findings and determinations made 
in carrying out the review, and publish such report online.
(c) Agency Response.--In response to each report issued under 
subsection (a), the appropriate Federal depository institution 
regulatory agency shall submit to the Committee on Financial Services 
of the House of Representatives and the Committee on Banking, Housing, 
and Urban Affairs of the Senate and publish online a written response, 
including a plan to implement the recommendations in the report, to the 
extent such implementation is appropriate.
(d) Definitions.--In this section:
(1) Application.--The term ``application'' means an 
application, notice, or other similar request for permission 
submitted to a Federal depository institution regulatory 
agency.
(2) Federal depository institution regulatory agency.--The 
term ``Federal depository institution regulatory agency'' means 
the Board of Governors of the Federal Reserve System, the 
Comptroller of the Currency, the Federal Deposit Insurance 
Corporation, and the National Credit Union Administration 
Board.
(3) Insured depository institution.--The term ``insured 
depository institution''--
(A) has the meaning given that term in section 3 of 
the Federal Deposit Insurance Act (12 U.S.C. 1813); and
(B) means an insured credit union, as defined in 
section 101 of the Federal Credit Union Act (12 U.S.C. 
1752).
(4) Insured depository institution merger application.--The 
term ``insured depository institution merger application'' 
means an application with respect to the acquisition of an 
insured depository institution, its equity interests, its 
assets, or its deposits under--
(A) section 10(e) of the Home Owners' Loan Act (12 
U.S.C. 1467a(e));
(B) section 205(b) of the Federal Credit Union Act 
(12 U.S.C. 1785(b));
(C) section 7(j) of the Federal Deposit Insurance 
Act (12 U.S.C. 1817(j));
(D) section 18(c)(2) of the Federal Deposit 
Insurance Act (12 U.S.C. 1828(c)(2));
(E) section 3 of the Bank Holding Company Act of 
1956 (12 U.S.C. 1842); and
(F) section 4 of the Bank Holding Company Act of 
1956 (12 U.S.C. 1843).

SEC. 604. 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 ``acquired'';
(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 application shall be deemed to have been 
granted.''; and
(4) by adding at the end the following:
``(B) Complete record on an application.--
``(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 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.
``(ii) Extension of notice.--Notwithstanding clause 
(i), the Board may, if an application is complex, 
extend the 30-day period described under clause (i) for 
an additional 30 days.
``(iii) Receipt of response; deeming of complete 
record.--Upon receipt of a response 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 response, 
provides the applicant a detailed notice 
describing the deficiencies.
``(iv) Treatment of third-party information.--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 subparagraphs 
(A) and (B), the Board shall grant or deny an 
application submitted under this section not later than 
120 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 determination.--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 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.--Section 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 application'';
(2) by redesignating paragraph (7) as paragraph (9); and
(3) by inserting after paragraph (6) the following:
``(7) Complete record on an application.--
``(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 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.--Notwithstanding 
subparagraph (A), the Board may, if an application is 
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 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 response, 
provides the applicant a detailed notice 
describing the deficiencies.
``(D) Treatment of third-party information.--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.
``(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 120 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.
``(B) Failure to make a determination.--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).''.
(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.--Notwithstanding 
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 complete unless the 
responsible agency--
``(i) determines that the applicant's 
response was materially deficient; and
``(ii) not later than 30 days after the 
date on which the responsible agency received 
the response, provides the applicant a detailed 
notice describing the deficiencies.
``(D) Treatment of third-party information.--In 
determining whether the record on an application 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 parties.
``(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 120 days after the 
date on which the application was initially submitted 
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 
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 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).''.

TITLE VII--STRENGTHENING TRANSPARENCY AND INVOLVEMENT IN BANK 
RESOLUTIONS

SEC. 701. LEAST COST EXCEPTION.

(a) In General.--Section 13(c)(4) of the Federal Deposit Insurance 
Act (12 U.S.C. 1823(c)(4)) is amended--
(1) in subparagraph (A)(ii), by inserting ``except as 
provided in subparagraph (I),'' before ``the total amount'';
(2) in subparagraph (E)(i), by inserting ``and except as 
provided in subparagraph (I),'' after ``appropriate,''; and
(3) by adding at the end the following:
``(I) Least cost resolution exception.--
``(i) In general.--With respect to an 
exercise of authority by the Corporation 
described in subparagraph (A), the Corporation 
may, at the discretion of the Corporation, 
select an alternative method of exercising such 
authority that is not the least costly to the 
Deposit Insurance Fund, if--
``(I) the Corporation determines 
that the selected alternative complies 
with the requirements of clause (iii); 
and
``(II) the Corporation and the 
Board of Governors of the Federal 
Reserve System, after consultation with 
the Secretary of the Treasury, 
determine that the potential additional 
risks to the Deposit Insurance Fund of 
the selected alternative are outweighed 
by the reasonably expected benefits of 
limiting further concentration of the 
United States banking system in global 
systemically important banking 
organizations.
``(ii) Maximum cost to the deposit 
insurance fund.--Not later than 1 year after 
the date of enactment of this subparagraph, the 
Corporation, by rule, shall establish criteria 
for determining on a case-by-case basis the 
maximum allowable cost against the net worth of 
the Deposit Insurance Fund that may be utilized 
to account for any determination under clause 
(i).
``(iii) Requirements described.--The 
requirements for the selected alternative 
described in clause (i) are as follows:
``(I) The selected alternative is 
least costly to the Deposit Insurance 
Fund of all alternatives that do not 
involve a transaction with a global 
systemically important banking 
organization and that do not exceed the 
cost of liquidating the insured 
depository institution.
``(II) The difference between the 
cost of the selected alternative and 
the cost of a covered alternative is 
less than or equal to the maximum cost 
to the Deposit Insurance Fund specified 
pursuant to the rule adopted under 
clause (ii).
``(III) In the case of a selected 
alternative that involves another 
person purchasing assets of the insured 
depository institution or assuming 
deposit liabilities of the insured 
depository institution, such person 
agrees to pay an assessment to the 
Corporation comprised of payments--
``(aa) made over a period 
to be determined by the 
Corporation, but which may not 
be less than 5 years; and
``(bb) in an amount that 
takes into account, on a case-
by-case basis, criteria the 
Corporation, by rule, shall 
establish, including a 
realistic discount rate, the 
aggregate amount equal to the 
difference calculated in 
subclause (II), and any bid 
inconsistent with the purposes 
of this Act, with such rule to 
be established by the 
Corporation not later than 1 
year after the date of 
enactment of this subparagraph.
``(iv) Report to congress.--Not later than 
30 days after selecting an alternative 
described in clause (i), the Corporation shall 
issue a report to the Committee on Financial 
Services of the House of Representatives and 
the Committee on Banking, Housing, and Urban 
Affairs of the Senate containing an analysis of 
the economic difference between the cost to the 
Deposit Insurance Fund of the selected 
alternative and the cost to the Deposit 
Insurance Fund of the least costly alternative 
that would have been selected absent the 
application of this subparagraph.
``(v) Cost determinations.--All cost 
determinations required under this subparagraph 
shall be made in accordance with subparagraphs 
(B) and (C).
``(vi) Definitions.--In this subparagraph:
``(I) Covered alternative.--The 
term `covered alternative' means a 
method of exercising authority 
described in subparagraph (A) that is 
the least costly to the Deposit 
Insurance Fund of all such methods that 
involve a sale of all or substantially 
all assets of the insured depository 
institution to, and assumption of all 
or substantially all deposit 
liabilities of the insured depository 
institution by, a global systemically 
important banking organization.
``(II) Global systemically 
important banking organization.--The 
term `global systemically important 
banking organization' means a global 
systemically important BHC (as such 
term is defined in section 217.402 of 
title 12, Code of Federal Regulations, 
or any successor thereto) and any 
affiliate thereof.''.
(b) Rule of Construction.--Section 13(c)(4)(H) of the Federal 
Deposit Insurance Act (12 U.S.C. 1823(c)(4)(H)) does not apply to the 
amendments made by subsection (a).

SEC. 702. ENHANCING BANK RESOLUTION PARTICIPATION.

(a) Study.--The Comptroller of the Currency, the Federal Deposit 
Insurance Corporation, and the Board of the Governors of the Federal 
Reserve System shall, jointly, carry out a study of--
(1) the use by the Comptroller of the Currency of shelf 
charters, including all conditional or preliminary shelf 
charter approvals granted between January 1, 2008, and the date 
of enactment of this Act;
(2) the use by the Federal Deposit Insurance Corporation of 
the modified bidder qualification process;
(3) the application of the Bank Holding Company Act of 1956 
(12 U.S.C. 1841 et seq.) and section 10 of the Home Owners' 
Loan Act (12 U.S.C. 1467a) to shelf charter proposals;
(4) whether shelf charters and modified bidder 
qualification processes were considered or used in connection 
with the receivership of any insured depository institution for 
which the Federal Deposit Insurance Corporation was appointed 
receiver in 2023;
(5) with respect to such receiverships, the extent to which 
greater use of shelf charters and modified bidder qualification 
processes could have--
(A) expanded the pool of participants in the 
acquisition of the assets or liabilities of such failed 
insured depository institutions;
(B) resulted in greater competition and diversity 
in market outcomes;
(C) protected the Deposit Insurance Fund; or
(D) strengthened financial stability and reduced 
the need for any emergency determination by the 
Secretary of the Treasury under section 13(c)(4)(G) of 
the Federal Deposit Insurance Act (12 U.S.C. 
1823(c)(4)(G)) with respect to any such receivership;
(6) the impact of the use of shelf charters and modified 
bidder qualification processes since January 1, 2008, including 
on financial stability, the safety and soundness of affected 
insured depository institutions, and the availability of 
financial products and services provided to consumers by such 
institutions; and
(7) any benefits and risks of private equity ownership of 
banks through the use of shelf charters and modified bidder 
qualification processes.
(b) Report.--Not later than 1 year after the date of enactment of 
this Act, the Comptroller of the Currency, the Federal Deposit 
Insurance Corporation, and the Board of the Governors of the Federal 
Reserve System shall, jointly, submit a report to the Committee on 
Financial Services of the House of Representatives and the Committee on 
Banking, Housing, and Urban Affairs of the Senate containing--
(1) all findings and determinations made in carrying out 
the study required under subsection (a); and
(2) an identification of statutory or regulatory barriers 
to the use and effectiveness of shelf charters and modified 
bidder qualification processes in the resolution of failed 
insured depository institutions, including recommendations for 
legislative and regulatory changes.
(c) Definitions.--In this section:
(1) Insured depository institution.--The term ``insured 
depository institution'' has the meaning given the term in 
section 3 of the Federal Deposit Insurance Act (12 U.S.C. 
1813).
(2) Modified bidder qualification process.--The term 
``modified bidder qualification process'' has the meaning given 
such term in the press release of the Federal Deposit Insurance 
Corporation titled ``FDIC Expands Bidder List for Troubled 
Institutions Plan Allows Those Without a Bank Charter to 
Participate in the Process'' published November 26, 2008.
(3) Shelf charter.--The term ``shelf charter'' has the 
meaning given such term in the report issued by the Comptroller 
of the Currency titled ``Activities Permissible for National 
Banks and Federal Savings Associations, Cumulative'' published 
October 2017.

SEC. 703. FAILING BANK ACQUISITION FAIRNESS.

(a) Concentration Limit Exceptions Only Available to Avoid Serious 
Adverse Economic or Financial Effects.--
(1) Concentration limits with respect to deposits.--
(A) Federal deposit insurance act.--The Federal 
Deposit Insurance Act (12 U.S.C. 1811 et seq.) is 
amended--
(i) in section 18(c)(13)--
(I) by amending subparagraph (B) to 
read as follows:
``(B) Subparagraph (A) shall not apply to an interstate merger 
transaction if--
``(i) such interstate merger transaction involves 1 or more 
insured depository institutions in default or in danger of 
default and the responsible agency determines, based on clear 
and convincing evidence, that consummation of the proposed 
interstate merger transaction is necessary to prevent 
significant economic disruption or significant adverse effects 
on financial stability, and the Corporation has not received 
any qualified bid from a company that is not subject to the 
prohibition in subparagraph (A); or
``(ii) the Corporation provides assistance under section 13 
to facilitate such interstate merger transaction and the 
responsible agency determines, based on clear and convincing 
evidence, that consummation of the proposed interstate merger 
transaction is necessary to prevent significant economic 
disruption or significant adverse effects on financial 
stability, and the Corporation has not received any qualified 
bid from a company that is not subject to the prohibition in 
subparagraph (A).''; and
(II) in subparagraph (C)--
(aa) in clause (i), by 
striking ``and'' at the end;
(bb) in clause (ii), by 
striking the period at the end 
and inserting a semicolon; and
(cc) by adding at the end 
the following:
``(iii) the term `qualified bid' means an application, 
proposed application, or bid from a company where--
``(I) if applicable, the company, any affiliate 
insured depository institution, and any affiliate 
depository institution holding company are well 
capitalized and well managed, as of the date of the 
application, proposed application, or bid; and
``(II) upon consummation of the transaction, the 
resulting insured depository institution is well 
capitalized;
``(iv) the term `well capitalized'--
``(I) with respect to an insured depository 
institution, has the meaning given such term in section 
38(b) (12 U.S.C. 1831o(b));
``(II) with respect to a bank holding company, has 
the meaning given such term in section 2(o)(1)(B) of 
the Bank Holding Company Act of 1956 (12 U.S.C. 
1841(o)(1)(B));
``(III) with respect to a savings and loan holding 
company, has the meaning given such term in section 
238.2 of title 12, Code of Federal Regulations; and
``(IV) with respect to a company that is not an 
insured depository institution, bank holding company, 
or savings and loan holding company, means maintaining 
equity capital that the Corporation determines is 
commensurate with the capital maintained by an insured 
depository institution that is well capitalized; and
``(v) the term `well managed' has the meaning given such 
term in section 2(o)(9) of the Bank Holding Company Act of 1956 
(12 U.S.C. 1841(o)(9)).''; and
(ii) in section 44, by amending subsection 
(e) to read as follows:
``(e) Exception for Banks in Default or in Danger of Default.--
``(1) General exception.--The responsible agency may, 
without regard to paragraph (1), (3), (4), or (5) of subsection 
(b) or paragraph (2), (4), or (5) of subsection (a), approve an 
application under subsection (a)(1) for approval of a merger 
transaction if--
``(A) the merger transaction involves 1 or more 
banks in default or in danger of default; or
``(B) the Corporation provides assistance under 
section 13(c) to facilitate such merger transaction.
``(2) Concentration limit exception.--The responsible 
agency may, without regard to subsection (b)(2), approve an 
application under subsection (a)(1) for approval of a merger 
transaction if--
``(A) the merger transaction involves 1 or more 
banks in default or in danger of default and the 
responsible agency determines, based on clear and 
convincing evidence, that consummation of the proposed 
interstate merger transaction is necessary to prevent 
significant economic disruption or significant adverse 
effects on financial stability, and the Corporation has 
not received any qualified bid from another institution 
that is not subject to the prohibition in subsection 
(b)(2); or
``(B) the Corporation provides assistance under 
section 13(c) to facilitate such merger transaction and 
the responsible agency determines, based on clear and 
convincing evidence, that consummation of the proposed 
interstate merger transaction is necessary to prevent 
significant economic disruption or significant adverse 
effects on financial stability, and the Corporation has 
not received any qualified bid from another institution 
that is not subject to the prohibition in subsection 
(b)(2).
``(3) Qualified bid defined.--In this subsection, the term 
`qualified bid' has the meaning given that term in section 
18(c)(13)(C).''.
(B) Bank holding company act of 1956.--The Bank 
Holding Company Act of 1956 (12 U.S.C. 1841 et seq.) is 
amended--
(i) in section 3(d), by amending paragraph 
(5) to read as follows:
``(5) Exception for banks in default or in danger of 
default.--
``(A) General exception.--The Board may, without 
regard to subparagraph (B) or (D) of paragraph (1) or 
paragraph (3), approve an application pursuant to 
paragraph (1)(A) if--
``(i) the application is for an acquisition 
of 1 or more banks in default or in danger of 
default; or
``(ii) the application is for an 
acquisition with respect to which assistance is 
provided under section 13(c) of the Federal 
Deposit Insurance Act.
``(B) Concentration limit exception.--The Board 
may, without regard to paragraph (2), approve an 
application pursuant to paragraph (1)(A) if--
``(i) the application is for the 
acquisition of 1 or more banks in default or in 
danger of default and the Board determines, 
based on clear and convincing evidence, that 
consummation of the proposed acquisition is 
necessary to prevent significant economic 
disruption or significant adverse effects on 
financial stability, and the Corporation has 
not received any qualified bid from another 
institution that is not subject to the 
prohibition in paragraph (2); or
``(ii) the application is for an 
acquisition with respect to which assistance is 
provided under section 13(c) of the Federal 
Deposit Insurance Act and the Board determines, 
based on clear and convincing evidence, that 
consummation of the proposed acquisition is 
necessary to prevent significant economic 
disruption or significant adverse effects on 
financial stability, and the Corporation has 
not received any qualified bid from another 
institution that is not subject to the 
prohibition in paragraph (2).
``(C) Qualified bid defined.--In this paragraph, 
the term `qualified bid' has the meaning given that 
term in section 18(c)(13)(C) of the Federal Deposit 
Insurance Act.''; and
(ii) in section 4(i)(8), by amending 
subparagraph (B) to read as follows:
``(B) Exception.--Subparagraph (A) shall not apply 
to an acquisition if--
``(i) such acquisition involves an insured 
depository institution in default or in danger 
of default and the Board determines, based on 
clear and convincing evidence, that 
consummation of the proposed acquisition is 
necessary to prevent significant economic 
disruption or significant adverse effects on 
financial stability, and the Corporation has 
not received any qualified bid (as defined in 
section 18(c)(13)(C) of the Federal Deposit 
Insurance Act) from another institution that is 
not subject to the prohibition in paragraph 
(2); or
``(ii) the Federal Deposit Insurance 
Corporation provides assistance under section 
13 of the Federal Deposit Insurance Act to 
facilitate such acquisition and the Board 
determines, based on clear and convincing 
evidence, that consummation of the proposed 
acquisition is necessary to prevent significant 
economic disruption or significant adverse 
effects on financial stability, and the 
Corporation has not received any qualified bid 
(as defined in section 18(c)(13)(C) of the 
Federal Deposit Insurance Act) from another 
institution that is not subject to the 
prohibition in paragraph (2).''.
(2) Concentration limit with respect to consolidated 
liabilities.--Section 14(c) of the Bank Holding Company Act of 
1956 (12 U.S.C. 1852(c)) is amended--
(A) by redesignating paragraphs (1), (2), and (3) 
as subparagraphs (A), (B), and (C), respectively;
(B) by striking ``With the'' and inserting the 
following:
``(1) In general.--With the''; and
(C) by adding at the end the following:
``(2) Limitation.--The Board may provide written consent 
for an acquisition described in paragraph (1)(A) or in 
paragraph (1)(B) only if the Board determines, based on clear 
and convincing evidence, that consummation of the proposed 
acquisition is necessary to prevent significant economic 
disruption or significant adverse effects on financial 
stability, and the Corporation has not received any qualified 
bid (as defined in section 18(c)(13)(C) of the Federal Deposit 
Insurance Act) from another institution that is not subject to 
the prohibition in subsection (b).''.
(b) Congressional Notification and Justification for Waivers.--
(1) In general.--Whenever the Board of Governors of the 
Federal Reserve System, the Comptroller of the Currency, or the 
Federal Deposit Insurance Corporation waives a concentration 
limit under section 18(c)(13)(B) or section 44(e) of the 
Federal Deposit Insurance Act or under section 3(d)(5), section 
4(i)(8)(B), or section 14(c)(2) of the Bank Holding Company Act 
of 1956, in connection with the acquisition of a bank or 
insured depository institution in default or in danger of 
default, or in connection with an acquisition with respect to 
which the Federal Deposit Insurance Corporation provides 
assistance under section 13 of the Federal Deposit Insurance 
Act, the waiving agency and the Federal Deposit Insurance 
Corporation, jointly, shall, not later than 30 days after such 
waiver, submit a written report to the Committee on Financial 
Services of the House of Representatives and the Committee on 
Banking, Housing, and Urban Affairs in the Senate containing--
(A) a justification for the waiver, including an 
analysis of why it was necessary to prevent significant 
economic disruption or significant adverse effects on 
financial stability;
(B) a description of alternative bids or outcomes 
considered, including efforts to solicit and encourage 
bids from entities that would not require a waiver;
(C) an explanation of why alternative bids were not 
selected, if applicable; and
(D) any recommendations for legislative or 
regulatory changes to improve competition in future 
insured depository institution resolutions.
(2) Public disclosure.--The waiving agency submitting a 
report under paragraph (1) and the Federal Deposit Insurance 
Corporation shall make the report publicly available on their 
respective websites, subject to redactions for confidential 
supervisory information and any other information described 
under section 552(b) of title 5, United States Code.
(c) Limitation on Considering Bad Faith Bids in Least Cost 
Determination.--Section 13(c)(4) of the Federal Deposit Insurance Act 
(12 U.S.C. 1823(c)(4)), as amended by section 701(a)(3), is further 
amended by adding at the end the following:
``(J) Limitation on considering bad faith bids.--In 
making a determination under this paragraph of whether 
an exercise of authority is the least costly to the 
Deposit Insurance Fund, the Corporation may not 
consider any application, proposed application, or bid 
from a company, if such application, proposed 
application, or bid would result in violation of--
``(i) section 18(c)(13) or 44(b)(2); or
``(ii) section 3(d)(2), 4(i)(8), or 14 of 
the Bank Holding Company Act of 1956.''.

SEC. 704. SYSTEMIC RISK AUTHORITY TRANSPARENCY.

(a) GAO Review.--Section 13(c)(4)(G)(iv) of the Federal Deposit 
Insurance Act (12 U.S.C. 1823(c)(4)(G)(iv)) is amended to read as 
follows:
``(iv) GAO review.--
``(I) In general.--The Comptroller 
General of the United States shall, not 
later than 60 days after a 
determination is made under clause (i), 
and again 180 days thereafter, review 
and report to the Congress on the 
determination under clause (i), 
including--
``(aa) the basis for the 
determination;
``(bb) the purpose for 
which any action was taken 
pursuant to such clause;
``(cc) the likely effect of 
the determination and such 
action on the incentives and 
conduct of insured depository 
institutions and uninsured 
depositors;
``(dd) any mismanagement by 
the executives and board of the 
insured depository institution 
that contributed to the failure 
of the insured depository 
institution;
``(ee) a review of the 
compensation practices of the 
insured depository institution;
``(ff) any supervisory or 
regulatory shortcomings with 
respect to the appropriate 
Federal banking agency of the 
insured depository institution;
``(gg) any actions taken by 
the Federal banking regulators, 
Financial Stability Oversight 
Council, Department of the 
Treasury, and other relevant 
financial regulators in 
relation to the failure of the 
insured depository institution; 
and
``(hh) any additional 
relevant entities or activities 
that may have contributed to 
the failure of the insured 
depository institution, 
including with respect to 
auditing, accounting, credit 
rating agencies, investment 
bank underwriters, and 
emergency liquidity options 
such as loans from the Federal 
reserve banks or advances 
through the Federal Home Loan 
Bank system.
``(II) Rule of construction.--
Nothing in this clause or a report 
issued pursuant to this clause may be 
construed to limit the authority of a 
Federal agency to enforce violations of 
Federal statutes, rules, or orders.''.
(b) Appropriate Federal Banking Agency Report.--Section 13(c) of 
the Federal Deposit Insurance Act (12 U.S.C. 1823(c)) is amended by 
adding at the end the following:
``(12) Appropriate federal banking agency report.--
``(A) In general.--The appropriate Federal banking 
agency of an insured depository institution about which 
a determination is made under paragraph (4)(G)(i) 
shall, not later than 90 days after the date of such 
determination, and again 210 days thereafter, submit a 
report to the Congress that discloses the following:
``(i) Subject to such redactions as the 
appropriate Federal banking agency determines 
appropriate to protect personally identifiable 
information about customers and other financial 
institutions (as such term is defined under 
section 11(e)(9)(D)), all--
``(I) reports of examination and 
inspection that relate to the failed 
insured depository institution in the 
previous 3-year period;
``(II) formal communications of a 
material supervisory determination 
conveyed to the failed insured 
depository institution in the previous 
3-year period; and
``(III) any additional exam reports 
and correspondence that the appropriate 
Federal banking agency determines may 
be relevant to the failure of the 
insured depository institution.
``(ii) An examination of any mismanagement 
by the executives and board of the insured 
depository institution that contributed to the 
failure of the insured depository institution.
``(iii) Any supervisory or regulatory 
shortcomings by such appropriate Federal 
banking agency with respect to the insured 
depository institution.
``(iv) Any dynamics that the appropriate 
Federal banking agency determines may have 
contributed to the failure of the insured 
depository institution.
``(v) Any supervisory, regulatory, or 
legislative recommendations such appropriate 
Federal banking agency may have to improve the 
safety and soundness of similarly situated 
insured depository institutions, the banking 
system, and financial stability.
``(B) Protection of sensitive information.--
``(i) Effect on privilege.--The provision 
of any information by a Federal banking agency 
under this paragraph may not be construed as--
``(I) waiving, destroying, or 
otherwise affecting any privilege 
applicable to the information; or
``(II) waiving any exemption 
applicable to the information under 
section 552 of title 5, United States 
Code (commonly known as the `Freedom of 
Information Act').
``(ii) Transparency.--
``(I) In general.--A Federal 
banking agency shall publish materials 
contained in a report required under 
subparagraph (A) to the fullest extent 
possible to promote transparency.
``(II) Consultation on omitting 
materials.--If a Federal banking agency 
determines particular materials 
described under subclause (I) should 
not be published, the Federal banking 
agency shall consult with the Chair and 
Ranking Member of the Committee on 
Financial Services of the House of 
Representatives and the Chair and 
Ranking Member of the Committee on 
Banking, Housing, and Urban Affairs of 
the Senate.
``(III) Omitting materials.--If, 
after the consultation required under 
subclause (II), the Federal banking 
agency determines there is a 
substantial public interest in not 
publishing such materials, the Federal 
banking agency shall provide those 
materials to the Committee on Financial 
Services of the House of 
Representatives and the Committee on 
Banking, Housing, and Urban Affairs of 
the Senate with a written explanation 
describing the reasons for not 
publishing those materials.
``(iii) Privilege.--For purposes of this 
subparagraph, the term `privilege' includes any 
work-product, attorney-client, or other 
privilege recognized under Federal or State 
law.
``(C) Report extension.--A Federal banking agency 
may extend a deadline described under subparagraph (A) 
for an additional 60 days, if the Federal banking 
agency--
``(i) faces ongoing circumstances that 
require the Federal banking agency to 
prioritize activities to promote stability of 
the U.S. banking system; and
``(ii) notifies the Congress of such 
extension and the reasons for such extension.
``(D) Consolidated reports.--A Federal banking 
agency may consolidate multiple reports required under 
this paragraph so long as the individual reports being 
consolidated all meet the timing requirements under 
this paragraph.
``(E) Rule of construction.--Nothing in this 
paragraph or reports or materials provided pursuant to 
this paragraph may be construed to limit the authority 
of a Federal agency to enforce violations of Federal 
statutes, rules, or orders.''.

TITLE VIII--FACILITATING INNOVATION AND BANK PARTNERSHIPS

SEC. 801. MERCHANT BANKING MODERNIZATION.

Section 4(k)(7)(A) of the Bank Holding Company Act of 1956 (12 
U.S.C. 1843(k)(7)(A)) is amended by inserting ``Under such regulations, 
the period of time generally permitted for holding merchant banking 
investments shall not be less than 15 years. For any merchant banking 
investment held on the date of enactment of the Merchant Banking 
Modernization Act, the holding period of time permitted shall not be 
less than 15 years from the initial date of the investment.'' after the 
period at the end.

SEC. 802. BANK-FINTECH PARTNERSHIP ENHANCEMENT.

(a) Study on Bank-Fintech Partnerships.--
(1) Study.--The Board of Governors of the Federal Reserve 
System, the Comptroller of the Currency, and the Federal 
Deposit Insurance Corporation shall carry out a study of--
(A) the impact of partnerships between banking 
organizations, on the one hand, and financial 
technology companies, on the other hand, on the banking 
sector, competition, innovation, consumer protection, 
and the availability of financial products and 
services, including the extent to which these 
partnerships support the formation of new banking 
organizations, reduce time to market for products and 
services, lower compliance burdens, boost customer 
acquisition, improve technological capabilities, and 
provide access to more diverse funding sources; and
(B) what changes to Federal laws governing banking 
organizations, or to rules or guidance adopted by the 
Board of Governors of the Federal Reserve System, the 
Comptroller of the Currency, or the Federal Deposit 
Insurance Corporation, may help promote effective 
partnerships between banking organizations, on the one 
hand, and financial technology companies, on the other 
hand.
(2) Report.--Not later than 1 year after 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 Services of the House of 
Representatives and the Committee on Banking, Housing, and 
Urban Affairs of the Senate containing all findings and 
determinations made in carrying out the study required under 
paragraph (1).
(3) Banking organization defined.--In this subsection, the 
term ``banking organization'' means a depository institution 
holding company or an insured depository institution, as such 
terms are defined, respectively, under section 3 of the Federal 
Deposit Insurance Act (12 U.S.C. 1813).
(b) Study on Credit Union-Fintech Partnerships.--
(1) Study.--The National Credit Union Administration shall 
carry out a study of--
(A) the impact of partnerships between credit 
unions, on the one hand, and financial technology 
companies, on the other hand, on the credit union 
sector, competition, innovation, consumer protection, 
and the availability of financial products and 
services, including the extent to which these 
partnerships support the formation of new credit 
unions, reduce time to market for products and 
services, lower compliance burdens, boost customer 
acquisition, improve technological capabilities, and 
provide access to more diverse funding sources; and
(B) what changes to Federal laws governing credit 
unions, or to rules or guidance adopted by the National 
Credit Union Administration, may help promote effective 
partnerships between credit unions, on the one hand, 
and financial technology companies, on the other hand.
(2) Report.--Not later than 1 year after the date of 
enactment of this Act, the National Credit Union Administration 
shall issue a report to the Committee on Financial Services of 
the House of Representatives and the Committee on Banking, 
Housing, and Urban Affairs of the Senate containing all 
findings and determinations made in carrying out the study 
required under paragraph (1).
Union Calendar No. 535

119th CONGRESS

2d Session

H. R. 6955

[Report No. 119-617]

_______________________________________________________________________

A BILL

To make improvements to the Federal banking laws, and for other 
purposes.

_______________________________________________________________________

April 20, 2026

Reported with an amendment, committed to the Committee of the Whole 
House on the State of the Union, and ordered to be printed