[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[H.R. 6955 Introduced in House (IH)]
<DOC>
119th CONGRESS
2d Session
H. R. 6955
To make improvements to the Federal banking laws, and for other
purposes.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
January 7, 2026
Mr. Hill of Arkansas (for himself, Mr. Barr, Mr. Huizenga, Mr. Lucas,
Mr. Sessions, Mrs. Wagner, Mr. Williams of Texas, Mr. Emmer, Mr.
Loudermilk, Mr. Davidson, Mr. Rose, Mr. Steil, Mr. Timmons, Mr.
Stutzman, Mr. Norman, Mr. Meuser, Mrs. Kim, Mr. Donalds, Mr. Garbarino,
Mr. Fitzgerald, Mr. Flood, Mr. Lawler, Ms. De La Cruz, Mr. Ogles, Mr.
Nunn of Iowa, Mrs. McClain, Ms. Salazar, Mr. Downing, Mr. Haridopolos,
and Mr. Moore of North Carolina) introduced the following bill; which
was referred to the Committee on Financial Services
_______________________________________________________________________
A BILL
To make improvements to the Federal banking laws, and for other
purposes.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE; TABLE OF CONTENTS.
(a) Short Title.--This Act may be cited as the ``Main Street
Capital Access Act'' or the ``Main Street Act''.
(b) Table of Contents.--The table of contents for this Act is as
follows:
Sec. 1. Short title; table of contents.
TITLE I--NEW BANK FORMATION AND LOCAL COMMUNITY ACCESS
Sec. 101. Promoting New Bank Formation.
Sec. 102. New Bank Application Numbers Knowledge.
Sec. 103. Bank Failure Prevention.
Sec. 104. Rural Depositories Revitalization Study.
TITLE II--TAILORING BANK REGULATION
Sec. 201. Taking Account of Institutions with Low Operation Risk.
Sec. 202. Small Bank Holding Company Relief.
Sec. 203. Community Bank Leverage Improvement and Flexibility for
Transparency.
Sec. 204. Tailoring and Indexing Enhanced Regulations.
TITLE III--FAIR AND TRANSPARENT BANK SUPERVISION
Sec. 301. Halting Uncertain Methods and Practices in Supervision.
Sec. 302. Fair Audits and Inspections for Regulators' Exams.
Sec. 303. Supervisory Modifications for Appropriate Risk-based Testing.
Sec. 304. Tailored Regulatory Updates for Supervisory Testing.
Sec. 305. Stress Testing Accountability and Transparency.
Sec. 306. Community Bank Representation.
Sec. 307. Financial Integrity and Regulation Management.
TITLE IV--REGULATORY ACCOUNTABILITY AND TRANSPARENCY
Sec. 401. FDIC Board Accountability.
Sec. 402. Stop Agency Fiat Enforcement of Guidance.
Sec. 403. Regulatory Efficiency, Verification, Itemization, and
Enhanced Workflow.
Sec. 404. American Financial Institution Regulatory Sovereignty and
Transparency.
TITLE V--STRENGTHENING LOCAL BANK FUNDING
Sec. 501. Bringing the Discount Window into the 21st Century.
Sec. 502. Keeping Deposits Local.
Sec. 503. Community Bank Deposit Access.
TITLE VI--PROMOTING BANK COMPETITION AND MERGER CLARITY
Sec. 601. Bank Competition Modernization.
Sec. 602. Merger Agreement Approvals Clarity and Predictability.
Sec. 603. Merger Process Review.
TITLE VII--STRENGTHENING TRANSPARENCY AND INVOLVEMENT IN BANK
RESOLUTIONS
Sec. 701. Least Cost Exception.
Sec. 702. Enhancing Bank Resolution Participation.
TITLE VIII--FACILITATING INNOVATION AND BANK PARTNERSHIPS
Sec. 801. Merchant Banking Modernization.
Sec. 802. Bank-Fintech Partnership Enhancement.
TITLE I--NEW BANK FORMATION AND LOCAL COMMUNITY ACCESS
SEC. 101. PROMOTING NEW BANK FORMATION.
(a) Phase-In of Capital Standards.--Notwithstanding any other
provision of law, the Federal banking agencies shall issue rules that
provide for a 3-year phase-in period for a depository institution or
depository institution holding company to meet any Federal capital
requirements that would otherwise be applicable to the depository
institution or depository institution holding company, beginning on--
(1) the date on which the depository institution became an
insured depository institution; or
(2) in the case of a depository institution holding
company, the date on which the depository institution
subsidiary of the depository institution holding company became
an insured depository institution.
(b) Changes to Business Plans.--
(1) In general.--During the 3-year period beginning on the
date on which a depository institution became an insured
depository institution, if, as a condition of approval, the
appropriate Federal banking agency imposes a requirement to
obtain prior approval before deviating from a business plan,
the insured depository institution or its depository
institution holding company may request to deviate materially
from a business plan that has been approved by the appropriate
Federal banking agency by submitting a request to such agency
pursuant to this section.
(2) Review of changes.--The appropriate Federal banking
agency shall, not later than the end of the 30-day period
beginning on the receipt of a request under paragraph (1)--
(A) approve, conditionally approve, or deny such
request; and
(B) notify the applicant of such decision and, if
the agency denies the request--
(i) provide the applicant with the reason
for such denial; and
(ii) suggest changes to the request that,
if adopted, would allow the agency to approve
such request.
(3) Result of failure to act.--If an appropriate Federal
banking agency fails to approve or deny a request within the
30-day period required under paragraph (2), such request shall
be deemed to be approved.
(c) Rural Community Depository Institution Leverage Ratio.--
(1) In general.--During the 3-year period beginning on the
date on which a rural depository institution became an insured
depository institution, the Community Bank Leverage Ratio for
the rural community bank shall be the lesser of--
(A) the Community Bank Leverage Ratio adopted by
the Federal banking agencies pursuant to section
201(b)(1) of the Economic Growth, Regulatory Relief,
and Consumer Protection Act (12 U.S.C. 5371 note); or
(B) 7.5 percent.
(2) Phase-in authority.--The Federal banking agencies shall
issue rules to phase-in the Community Bank Leverage Ratio
described under paragraph (1) with respect to a rural
depository institution by setting lower Community Bank Leverage
Ratio percentages during the first 2 years of the 3-year period
described under paragraph (1).
(3) Definitions.--In this subsection:
(A) Community bank leverage ratio.--The term
``Community Bank Leverage Ratio'' has the meaning given
that term under section 201(a) of the Economic Growth,
Regulatory Relief, and Consumer Protection Act (12
U.S.C. 5371 note).
(B) Rural area.--The term ``rural area'' means--
(i) a county that is neither in a
metropolitan statistical area nor in a
micropolitan statistical area that is adjacent
to a metropolitan statistical area, as those
terms are defined by the Office of Management
and Budget and as they are applied under
applicable Urban Influence Codes, established
by the Department of Agriculture's Economic
Research Service; or
(ii) a census block that is not in an urban
area, as defined by the Bureau of the Census
using the latest decennial census of the United
States.
(C) Rural depository institution.--The term ``rural
depository institution'' means a depository
institution--
(i) with total consolidated assets of less
than $10,000,000,000; and
(ii) located in a rural area.
(d) Agricultural Loan Authority for Federal Savings Associations.--
Section 5(c) of the Home Owners' Loan Act (12 U.S.C. 1464(c)) is
amended--
(1) in paragraph (1), by adding at the end the following:
``(V) Agricultural loans.--Secured or unsecured
loans for agricultural purposes.''; and
(2) in paragraph (2)(A), by striking ``business, or
agricultural'' and inserting ``or business''.
(e) Study on De Novo Insured Depository Institutions.--
(1) Study.--The Federal banking agencies shall, jointly,
carry out a study on--
(A) the principal causes for the low number of de
novo insured depository institutions in the 10-year
period ending on the date of enactment of this Act; and
(B) ways to promote more de novo insured depository
institutions in areas currently underserved by insured
depository institutions.
(2) Report to congress.--Not later than the end of the 1-
year period beginning on the date of enactment of this Act, the
Federal banking agencies shall, jointly, issue a report to
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.
SEC. 102. NEW BANK APPLICATION NUMBERS KNOWLEDGE.
(a) Annual Report on National Bank and Federal Savings Association
Charter Applications.--The Comptroller of the Currency shall publish an
annual report that includes the following, or with respect to any
equivalent procedure used by the Office of the Comptroller of the
Currency includes the following:
(1) The number of applications for a national bank or
Federal savings association charter received, approved on a
preliminary basis, approved on a final basis, denied,
withdrawn, inactive, expired, mooted, returned, returned
pending resubmission, or otherwise dispositioned.
(2) The mean and median times for preliminary approval of
such applications.
(3) The mean and median times for final approval of such
applications.
(4) To the extent practicable, common reasons leading to
the denial, withdrawal, or expiration of preliminary approval
of such applications.
(b) Annual Report on Federal Credit Union Charter Applications.--
The National Credit Union Administration shall publish an annual report
that includes the following, or with respect to any equivalent
procedure used by the Board includes the following:
(1) The number of Federal credit union charter applications
received, approved on a final basis, denied, withdrawn,
inactive, or returned pending resubmission.
(2) The mean and median times for final approval of such
applications.
(3) To the extent practicable, common reasons leading to
application denial, withdrawal, inactivity, or to applications
being returned for resubmission.
(c) Annual Report on Depository Institution Holding Company
Applications.--
(1) In general.--The Board of Governors of the Federal
Reserve System shall publish an annual report that includes the
following, or with respect to any equivalent procedure used by
the Board of Governors includes the following:
(A) The number of applications to become a top-tier
depository institution holding company received,
approved on a preliminary basis, approved on a final
basis, denied, withdrawn, inactive, expired, mooted,
returned, returned pending resubmission, or otherwise
dispositioned.
(B) The mean and median times to approve such
applications.
(C) To the extent practicable, common reasons
leading to denial or withdrawal of such applications.
(2) Top-tier depository institution holding company
defined.--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).
SEC. 103. BANK FAILURE PREVENTION.
(a) Bank Holding Companies.--Section 3(b)(1) of the Bank Holding
Company Act of 1956 (12 U.S.C. 1842(b)(1)) is amended--
(1) by striking ``Upon receiving'' and inserting the
following:
``(A) In general.--Upon receiving'';
(2) by striking ``required'' and inserting ``acquired'';
(3) by striking ``In the event of the failure of the Board
to act on any application for approval under this section
within the ninety-one-day period which begins on the date of
submission to the Board of the complete record on that
application, the application shall be deemed to have been
granted.''; and
(4) by adding at the end the following:
``(B) Complete record on an application.--
``(i) Notice to applicant.--Not later than 30 days
after the date on which the Board receives an
application for approval under this section, the Board
shall transmit to the applicant a letter that either--
``(I) confirms the record on the
application is complete; or
``(II) details all additional information
that is required for the record on that
application to be complete.
``(ii) Extension of notice.--Notwithstanding clause
(i), the Board may, if an application is complex,
extend the 30-day period described under clause (i) for
an additional 30 days.
``(iii) Receipt of response; deeming of complete
record.--Upon receipt of a response from an applicant
to a notice requesting additional information described
under clause (i)(II), the record on the application
shall be deemed complete unless the Board--
``(I) determines that the applicant's
response was materially deficient; and
``(II) not later than 30 days after the
date on which the Board received the response,
provides the applicant a detailed notice
describing the deficiencies.
``(iv) Treatment of third-party information.--In
determining whether the record on an application is
complete, the Board may take into account only
information provided by the applicant, and may not base
the determination of completeness on any information
(including reports, views, or recommendations) provided
by third parties.
``(C) Deadline for determination.--
``(i) In general.--Notwithstanding subparagraphs