Community Bank LIFT Act
Community Bank LIFT Act: Reducing Rules for Local Banks
The Community Bank LIFT 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 as it has been placed on the official calendar for future consideration. There is no companion bill listed at this time.
Legislative Progress
The bill has successfully moved out of committee and addresses a popular goal of helping small banks, which often gets support from both parties.
Key Points
- This bill makes it easier for local community banks to follow federal rules by lowering the amount of cash they must keep on hand. It changes the required cash reserve ratio from at least 8 percent down to as low as 6 percent.
- More banks will qualify for these simpler rules. Currently, only banks with less than $10 billion in assets can use this simplified system, but this bill raises that limit to $15 billion so more mid-sized local banks can participate.
- The goal is to reduce the time and money small banks spend on complex government paperwork. By making the rules simpler, supporters hope these banks can focus more on lending money to local families and small businesses in their towns.
- Federal banking agencies like the FDIC and the Federal Reserve must study how to make these rules even easier for the smallest banks. They have about five months to finish a report and one year to put the new rules into action.
Impact Analysis
Govbase has not yet run an impact analysis on this legislation.
Milestones
Placed on the Union Calendar, Calendar No. 319.
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. 119-367.
Ordered to be Reported (Amended) by the Yeas and Nays: 33 - 19.
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
Community Bank LIFT Act
Data Sources
Sponsor
Analysis generated by AI. Always verify with official sources.