Promoting New Bank Formation Act
New Bank Formation: 3-Year Phase-In Rules
The Promoting New Bank Formation Act has been approved by the House Financial Services Committee and is now waiting for further action on the House floor. It is currently moving forward through the legislative process. There are no upcoming votes scheduled at this time.
Legislative Progress
The bill has moved out of committee with many sponsors, but it still needs to pass the full House and the Senate.
Key Points
- This bill helps new banks get started by giving them three years to meet federal rules about how much money they must keep in reserve. Currently, new banks often struggle with these strict financial requirements right away.
- Small banks in rural areas would get extra help. For their first three years, they would only need to keep 8 percent of their value in reserve, and the government could set even lower limits during the first two years to help them grow.
- New banks would be allowed to change their business plans more easily. If they ask the government for a change, the agency must answer within 30 days or the change is automatically approved.
- Federal savings associations would gain the power to offer more loans for farming and agriculture. This is intended to help farmers get the money they need for their operations.
- The government would also study why so few new banks have opened in the last ten years. They will look for ways to encourage more banks to open in areas that do not have enough banking options.
Impact Analysis
Govbase has not yet run an impact analysis on this legislation.
Milestones
Placed on the Union Calendar, Calendar No. 64.
The bill is now on the schedule for the full chamber to consider. It's in line for debate and a vote.
Reported (Amended) by the Committee on Financial Services. H. Rept. 119-90.
Ordered to be Reported (Amended) by the Yeas and Nays: 28 - 21.
The committee approved this bill and is sending it to the full chamber for a vote. This is a significant step — most bills never get this far.
Committee Consideration and Mark-up Session Held
Referred to the House Committee on Financial Services.
Votes
No votes have been recorded for this legislation yet.
News
No related news coverage found for this legislation yet.
Source Information
Document Type
Congressional Bill
Official Title
Promoting New Bank Formation Act
Data Sources
Sponsor
Cosponsors
(24)Analysis generated by AI. Always verify with official sources.