(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.

(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 Congress 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.

(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.—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 BANK.—The term “State bank” has the meaning given such term in section 3 of the Federal Deposit Insurance Act (12 U.S.C. 1813).

(C) 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).

(D) STATE SAVINGS ASSOCIATION.—The term “State savings association” has the meaning given such term in section 3 of the Federal Deposit Insurance Act (12 U.S.C. 1813).

(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 90 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 90 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 90 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).”.

(a) Study.—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.—Not later than 1 year after the date of enactment of this Act, the Federal banking agencies shall, jointly, issue a report to Congress containing all findings and determinations made in carrying out the study required under subsection (a).

(c) 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) RURAL.—With respect to an area, the term “rural” has the meaning given that term in section 1026.35(b)(2)(iv)(A) of title 12, Code of Federal Regulations.

(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.—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.

(6) LIMITED LOOK-BACK APPLICATION.—

(A) IN GENERAL.—Each Federal financial institutions regulatory agency shall—

(i) conduct a review of all final regulations issued pursuant to statutes enacted during the period beginning on the date that is 15 years before the date on which this Act is introduced and ending on the date of enactment of this Act; and

(ii) apply the requirements of this section to the regulations described in clause (i).

(B) REVISION.—Any regulation revised under subparagraph (A) shall be revised not later than 3 years after the date of enactment of this Act.

(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.

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 $25,000,000,000 for any bank holding company or savings and loan holding company.

(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 8 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).

(a) Threshold adjustments To account for historical increases in current-Dollar United States gross domestic product.—

(1) FEDERAL RESERVE ACT.—The second subsection (s) (relating to assessments) of section 11 of the Federal Reserve Act (12 U.S.C. 248(s)) is amended—

(A) in paragraph (2), by striking “$100,000,000,000” each place that term appears and inserting “$150,000,000,000”; and

(B) 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:

(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.”.

(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 clear, objective 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:

(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 a period; and

(C) by striking clause (ii).

(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, is further amended by adding at the end the following:

(b) Timeliness of required permission, regulatory, and reporting guidance.—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:

(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:

(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:

(e) Additional amendments.—

(1) REGULATOR 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 an appropriate Federal banking agency 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”.

(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.”.

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”.

(a) Rulemaking related to stress capital buffer requirements.—

(1) IN GENERAL.—Not later than 90 days after the date of the enactment of this section, the Board of Governors of the Federal Reserve System (in this section referred to as the “Board”) shall issue a rule—

(A) establishing the models, assumptions, formulas, and other decisional methodologies that are used to conduct any stress test pursuant to section 165(i) of the Financial Stability Act of 2010 (12 U.S.C. 5365(i)), including any such test that is used to determine any component or subcomponent of the stress capital buffer requirement for a covered company; and

(B) to determine, where the Board has supervisory stress test results from two or more periodic analyses of a covered company, the covered company’s stress capital buffer requirement on the basis of supervisory stress test results from two or more periodic analyses of that covered company.

(2) CHANGES.—The Board may only make material changes to the methodologies established in the rule issued under paragraph (1)(A) through notice and comment rulemaking.

(3) NO DOUBLE-COUNT.—The Board shall ensure no double-count of capital requirements for the same risks in the stress capital buffer requirement and the risk-based capital requirements.

(4) DEFINITIONS.—In this subsection:

(A) COVERED COMPANY.—The term “covered company” means a company to which section 225.8 of title 12, Code of Federal Regulations, or section 238.170 of title 12, Code of Federal Regulations, applies.

(B) STRESS CAPITAL BUFFER REQUIREMENT.—The term “stress capital buffer requirement” has the meaning given that term under—

(i) section 225.8(d) of title 12, Code of Federal Regulations; and

(ii) section 238.170(d) of title 12, Code of Federal Regulations.

(5) RULE OF CONSTRUCTION.—Nothing in this subsection may be construed to imply that the Board is required to establish a stress capital buffer requirement for any bank holding company or any other company regulated by the Board.

(b) Rulemaking relating to stress testing.—

(1) IN GENERAL.—Beginning in the first calendar year beginning after the date of the enactment of this section, the Board shall, not less than 60 days before conducting a stress test pursuant to section 165(i) of the Financial Stability Act of 2010, publicly disclose each scenario to be used in such stress test.

(2) PROHIBITION.—The Board may not, by rule or otherwise, subject any nonbank financial company or bank holding company to a climate-related stress test using the authority provided in section 165(i) of the Financial Stability Act of 2010.

(c) GAO report.—

(1) IN GENERAL.—The Comptroller General of the United States shall, every 3 years, conduct a study and submit a report to the Congress with respect to the stress tests conducted by the Board under section 165(i) of the Financial Stability Act of 2010 in the 3 most recent calendar years.

(2) CONTENTS.—The report submitted to the Congress under paragraph (1) shall consider the effectiveness of the stress tests in evaluating—

(A) the safety and soundness of the nonbank financial companies and bank holding companies subjected to stress tests; and

(B) the stability of the United States financial system.

(a) Federal Reserve Act.—Section 10 of the Federal Reserve Act is amended—

(1) in the first undesignated paragraph (12 U.S.C. 241), by striking “having less than $10,000,000,000 in total assets”;

(2) in the second undesignated paragraph (12 U.S.C. 242), by inserting after “regulation of such firms.” the following: “The Chairman shall select one member of the Board with demonstrated primary experience working in or supervising community banks to, in consultation with the Vice Chairman for Supervision and any other member of the Board with demonstrated primary experience working in or supervising community banks, develop policy recommendations for the Board regarding supervision and regulation of banking organizations supervised by the Board having less than $17,000,000,000 in total assets, and to oversee the supervision and regulation of such banking organizations in consultation with the Vice Chairman for Supervision and any other member of the Board with demonstrated primary experience working in or supervising community banks.”;

(3) in paragraph (12) (12 U.S.C. 247b)—

(A) by striking “The Vice Chairman for Supervision” and inserting the following:

“(A) VICE CHAIRMAN FOR SUPERVISION.—The Vice Chairman for Supervision”;

(B) by striking “and at” and inserting “at”; and

(C) by adding at the end the following:

“(B) COMMUNITY BANK MEMBER.—The member of the Board with demonstrated primary experience working in or supervising community banks selected by the Chairman to develop policy recommendations for the Board regarding supervision and regulation of banking organizations supervised by the Board having less than $17,000,000,000 in total assets, and to oversee the supervision and regulation of such banking organizations, if different than the Vice Chairman for Supervision, shall appear before the Committee on Banking, Housing, and Urban Affairs of the Senate and the Committee on Financial Services of the House of Representatives at semi-annual hearings regarding the efforts, activities, objectives, and plans of the Board with respect to the conduct of supervision and regulation of banking organizations supervised by the Board having less than $17,000,000,000 in total assets.”; and

(4) by adding at the end the following:

“(13) MEMBER OF THE BOARD FOR COMMUNITY BANKS ANNUAL THRESHOLD ADJUSTMENT.—

“(A) 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 each dollar figure described in the second undesignated paragraph of this section, paragraph (12)(B) of this section, and section 1004(a)(3) of the Federal Financial Institutions Examination Council Act of 1978 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.

“(B) DETERMINATION OF GDP.—In this paragraph, the Board shall use nominal gross domestic product statistics determined by the Bureau of Economic Analysis.”.

(b) Federal Financial Institutions Examination Council Act of 1978.—Section 1004(a)(3) of the Federal Financial Institutions Examination Council Act of 1978 (12 U.S.C. 3303(a)(3)) is amended by adding at the end the following: “and such Governor shall consult with the Governor with demonstrated primary experience working in or supervising community banks selected by the Chairman of the Board to develop policy recommendations for the Board regarding supervision and regulation of banking organizations supervised by the Board having less than $17,000,000,000 in total assets, and to oversee the supervision and regulation of such banking organizations,”.

(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.

Section 2 of the Federal Deposit Insurance Act (12 U.S.C. 1812) is amended—

(1) in subsection (a)—

(A) in paragraph (1)—

(i) in subparagraph (A), by adding “and” at the end; and

(ii) by striking subparagraphs (B) and (C) and inserting the following:

“(B) 4 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

(B) by adding at the end the following:

“(3) NON-VOTING STATUS OF THE DIRECTOR OF THE BUREAU OF CONSUMER FINANCIAL PROTECTION.—The Director of the Bureau of Consumer Financial Protection shall serve as a non-voting observer to the Board of Directors of the Corporation.”;

(2) 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.”;

(3) in subsection (d)(2)—

(A) by striking “Consumer Financial Protection Bureau” each place such term appears and inserting “Bureau of Consumer Financial Protection”; and

(B) by inserting “or observer, as the case may be,” after “member”; and

(4) in subsection (f)(2), by striking “or of the Consumer Financial Protection Bureau”.

(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.

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” each place such term appears 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 7 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, simplify, 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 7 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).”.

(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 list of the global financial regulatory or supervisory forums in which the Board maintained membership during the period covered by the report; and

“(ii) for each such global financial regulatory or supervisory forum in the list provided pursuant to clause (i)—

“(I) a description of the general purposes of the global financial regulatory or supervisory forum, including a list of the current members and observers of the global financial regulatory or supervisory forum;

“(II) a discussion of how the general purposes of the global financial regulatory or supervisory forum align with the purposes of this Act and the other Acts that the Board implements;

“(III) an identification of the sources that provided a material amount of funding for the operations of the global financial regulatory or supervisory forum during the period covered by the report;

“(IV) a description of the organization the Board maintained during the period covered by the report to conduct interactions with the global financial regulatory or supervisory forum, including an organizational chart and an identification of the official staff of the Board with oversight responsibility for interactions with the global financial regulatory or supervisory forum;

“(V) a discussion of the financial regulatory or supervisory standard-setting issues under discussion at the global financial regulatory or supervisory forum during the period covered by the report;

“(VI) a description of the positions taken by representatives of the Board at the global financial regulatory or supervisory forum during the period covered by the report, including the rationale, objectives, and potential impacts of such positions;

“(VII) a summary of the meetings attended by representatives of the Board at the global financial regulatory or supervisory forum during the period covered by the report, including a discussion of the key outcomes from such meetings;

“(VIII) the text of any final policies, standards, or recommendations adopted by the global financial supervisory or regulatory forum during the period covered by the report, including any implementing material, annex, appendix, side letter, or similar document entered into contemporaneously or in conjunction with the underlying policy, standard, or recommendation, or an identification of a publicly available source for the text of such policy, standard, recommendation, or implementing material;

“(IX) a description of any amendments to Federal statutes, regulations of the Board, guidance of the Board, or changes to the Board’s supervisory practices the Board anticipates will be necessary to implement any final policies, standards, or recommendations adopted by the global financial supervisory or regulatory forum during the period covered by the report;

“(X) a discussion of rules proposed, rules under consideration, final rules adopted, guidance proposed, guidance under consideration, final guidance adopted, or any other similar actions taken by the Board during the period covered by the report to implement agreements of the global financial regulatory or supervisory forum, including an economic impact analysis and a justification for why the expected costs of implementing actions are at least offset by the expected benefits related to economic, national security, financial stability, or other national interests; and

“(XI) such other information relating to interactions with the global financial regulatory or supervisory forum during the period covered by the report separately requested in writing by the Committee on Banking, Housing, and Urban Affairs of the Senate or the Committee on Financial Services of the House of Representatives.

“(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:

(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 list of the global financial regulatory or supervisory forums in which the Corporation maintained membership during the period covered by the report; and

“(B) for each such global financial regulatory or supervisory forum in the list provided pursuant to subparagraph (A)—

“(i) a description of the general purposes of the global financial regulatory or supervisory forum, including a list of the current members and observers of the global financial regulatory or supervisory forum;

“(ii) a discussion of how the general purposes of the global financial regulatory or supervisory forum align with the purposes of this Act and the other Acts that the Corporation implements;

“(iii) an identification of the sources that provided a material amount of funding for the operations of the global financial regulatory or supervisory forum during the period covered by the report;

“(iv) a description of the organization the Corporation maintained during the period covered by the report to conduct interactions with the global financial regulatory or supervisory forum, including an organizational chart and an identification of the official staff of the Corporation with oversight responsibility for interactions with the global financial regulatory or supervisory forum;

“(v) a discussion of the financial regulatory or supervisory standard-setting issues under discussion at the global financial regulatory or supervisory forum during the period covered by the report;

“(vi) a description of the positions taken by representatives of the Corporation at the global financial regulatory or supervisory forum during the period covered by the report, including the rationale, objectives, and potential impacts of such positions;

“(vii) a summary of the meetings attended by representatives of the Corporation at the global financial regulatory or supervisory forum during the period covered by the report, including a discussion of the key outcomes from such meetings;

“(viii) the text of any final policies, standards, or recommendations adopted by the global financial supervisory or regulatory forum during the period covered by the report, including any implementing material, annex, appendix, side letter, or similar document entered into contemporaneously or in conjunction with the underlying policy, standard, or recommendation, or an identification of a publicly available source for the text of such policy, standard, recommendation, or implementing material;

“(ix) a description of any amendments to Federal statutes, regulations of the Corporation, guidance of the Corporation, or changes to the Corporation’s supervisory practices the Corporation anticipates will be necessary to implement any final policies, standards, or recommendations adopted by the global financial supervisory or regulatory forum during the period covered by the report;

“(x) a discussion of rules proposed, rules under consideration, final rules adopted, guidance proposed, guidance under consideration, final guidance adopted, or any other similar actions taken by the Corporation during the period covered by the report to implement agreements of the global financial regulatory or supervisory forum, including an economic impact analysis and a justification for why the expected costs of implementing actions are at least offset by the expected benefits related to economic, national security, financial stability, or other national interests; and

“(xi) such other information relating to interactions with the global financial regulatory or supervisory forum during the period covered by the report separately requested in writing by the Committee on Banking, Housing, and Urban Affairs of the Senate or the Committee on Financial Services of the House of Representatives.

“(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))”.

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.”.

(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)(2)(A)(i) of the Federal Deposit Insurance Act (12 U.S.C. 1831f(i)(2)(A)(i)) is amended 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”.

(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 report required under paragraph (1).

(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) 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; or

“(ii) 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.”.

(a) In general.—Section 18(c) of the Federal Deposit Insurance Act (12 U.S.C. 1828(c)), as amended by section 103(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.”.

(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 Congress 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).

(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 Congress 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 to Congress under subsection (a), the appropriate Federal depository institution regulatory agency shall submit to Congress 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).

(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).

(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.

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.

(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 Congress 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 Congress containing all findings and determinations made in carrying out the study required under subsection (a).