HR 478

Summary

Promoting New Bank Formation Act This bill eliminates and reduces certain requirements applicable to new depository institutions, certain rural community depository institutions, and federal savings associations. Federal banking agencies must issue rules allowing a new depository institution or depository institution holding company three years to meet capital requirements. During this period, a depository institution or its depository institution holding company may request to deviate from an approved business plan, and the appropriate agency has 30 days to approve or deny the request. In addition, the community bank leverage ratio—a way of evaluating debt levels—is reduced for new rural community depository institutions. Specifically, new rural community depository institutions must have a ratio of 8%, with a three-year phase-in of the rate. After this period, the ratio rises to its current level of 9%.  Finally, the bill removes certain restrictions to allow federal savings associations to invest in, sell, or otherwise deal in agricultural loans.

Bill status

Status

Reported

Sponsor

Rep. Andy Barr [R-KY-6]

Cosponsors

24

Policy area

Finance and Financial Sector

Introduced

2025-01-16

Latest action

2025-05-06: Placed on the Union Calendar, Calendar No. 64.

Committee referrals

• Financial Services Committee: House · Reported By · 2025-05-06
• Financial Services Committee: House · Markup By · 2025-04-02
• Financial Services Committee: House · Referred To · 2025-01-16

Recent actions

• 2025-05-06: Placed on the Union Calendar, Calendar No. 64.
• 2025-05-06: Reported (Amended) by the Committee on Financial Services. H. Rept. 119-90.
• 2025-05-06: Reported (Amended) by the Committee on Financial Services. H. Rept. 119-90.
• 2025-04-02: Ordered to be Reported (Amended) by the Yeas and Nays: 28 - 21.
• 2025-04-02: Committee Consideration and Mark-up Session Held