Closing the Enhanced Prudential Standards Loophole Act
Rep. Waters Introduces Bill to Close Oversight Loophole for Large Banks
This bill was recently introduced and is currently being reviewed by the House Committee on Financial Services. It is in the early stages of the lawmaking process and is considered active. There are no upcoming votes scheduled at this time.
Legislative Progress
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.
Key Points
Impact Analysis
Personal Impact
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.”
Milestones
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.
Votes
No votes have been recorded for this legislation yet.
Related News
2 articlesFINANCIAL STABILITY—House Democrats continue push for banking reforms
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.
House committee passes bank deregulatory package
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.
Source Information
Document Type
Congressional Bill
Official Title
Closing the Enhanced Prudential Standards Loophole Act
Data Sources
Sponsor
Analysis generated by AI. Always verify with official sources.