Small Bank Holding Company Relief Act

Key Points

• This bill changes how the government defines a small bank. It tells the Federal Reserve to raise the size limit for companies that own banks to $25 billion in total assets.
• Banks that fall under this new limit would follow simpler rules regarding debt and cash reserves. This is intended to help mid-sized banks compete with the very largest national banks.
• By raising the limit, more banks can use easier accounting and reporting methods. Supporters believe this allows local banks to spend more time lending to their communities and less time on paperwork.
• The Federal Reserve would have about six months to update its official policy once the bill becomes law.
• While this helps smaller banks, some critics argue that letting larger institutions follow simpler rules could lead to financial risks if those banks fail.

Impact Analysis

Govbase has not yet run an impact analysis on this legislation.