Rep. Waters Introduces Bill to Close Oversight Loophole for Large Banks
This bill is currently sitting in the House Committee on Financial Services. It has not seen any action since March 2026, which is a period of four months. The bill is stalled because the committee must review it before it can move forward.
This bill was introduced by a single member and faces a long process in committee where many banking bills stall. Without clear support from the majority party, it is unlikely to move forward.
This bill’s path across every version that has carried it.
Reintroduced
Reintroduced from H.R. 4210 (118th), which died when its Congress ended.
H.R. 4210 (118th) →Scores run from -100 (strongly harmful) to +100 (strongly beneficial) for each group, combining impact, certainty, scope, and duration ratings of 1-5. How impact scoring works
Large standalone banks that serve small businesses could face higher compliance costs under the new enhanced prudential standards, potentially leading to tighter lending or higher fees. However, stronger oversight of these banks also reduces the risk of sudden bank failures that could freeze access to credit and deposits for small business customers.
“The provisions of this section shall apply to a bank that does not have a bank holding company to the same extent as such provisions apply to a bank holding company with the same amount of total consolidated assets as the bank.”
Referred to the House Committee on Financial Services.
Introduced in House
The bill was officially filed and given a number. It now enters the legislative queue.
Ranking Member Maxine Waters reintroduced the 'Closing the Enhanced Prudential Standards Loophole Act' (H.R. 7888) to apply enhanced prudential standards more uniformly across large banks, including those without a holding company structure, ensuring they follow strict capital and liquidity rules.
While the committee passed a deregulatory package, Ranking Member Maxine Waters attempted to drum up support for legislation to increase oversight of the largest banks, targeting loopholes that allow some institutions to escape the strictest prudential standards regardless of their organization.
No votes or related bills recorded for this bill yet.
Document Type
Congressional Bill
Official Title
Closing the Enhanced Prudential Standards Loophole Act
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