House BillHR 4437Business recordsGovernment studies and investigations
SMART Act of 2025
INTRO JUL 16· LAST ACTION MAY 13
READING
8MIN
COSPONSORS
1
READER REACTIONS0 TOTAL
NO VOTES YET · BE THE FIRST
Reported, not passed
LEGISLATIVE PROGRESS
STEP 4 / 8
Introduced
In Committee
Reported
Passed House
Passed Senate
Conference
To President
Became Law
WHAT THE BILL DOES
AI-written
This bill matters because it seeks to find a balance between ensuring financial stability through robust oversight and reducing the operational costs for smaller financial institutions. Many smaller banks and credit unions have argued that the extensive and often overlapping regulatory examinations, which are largely designed for larger, more complex financial firms, place an undue burden on them. This burden can tie up resources and add costs, potentially hindering their ability to serve local communities.
If this bill becomes law, it could free up resources for these institutions, potentially allowing them to invest more in their local economies, offer more competitive products to consumers, or simply reduce their operating expenses, which might prevent some costs from being passed on to customers. Without this bill, these smaller institutions would continue to face the current examination regime. Voters should care because the health and efficiency of local banks and credit unions directly impact access to loans, savings accounts, and other vital financial services in their communities.
KEY PROVISIONS
4AI-extracted
PROVISION 01
Allows eligible well-managed and well-capitalized banks and credit unions with $6 billion or less in assets to alternate between full-scope and limited-scope examinations.
This provision directly reduces the frequency of comprehensive, on-site regulatory reviews for qualifying institutions.
PROVISION 02
Requires federal banking agencies and the NCUA to allow eligible institutions to combine separate examinations (e.g., safety & soundness, consumer compliance, IT/cybersecurity) upon request.
This streamlines the regulatory process, potentially saving time and resources for financial institutions by consolidating multiple inspections.
PROVISION 03
Excludes institutions currently subject to formal enforcement proceedings or, for banks, those that have undergone a change of control since their last full exam, from receiving examination relief.
This ensures that institutions with significant issues or recent ownership changes still receive full regulatory scrutiny.
PROVISION 04
Mandates federal banking agencies and the National Credit Union Administration to issue rules within 12 months to implement the examination relief procedures.
This sets a clear timeline for the regulatory bodies to develop the necessary framework and specific procedures for the new examination process.
This bill matters because it seeks to find a balance between ensuring financial stability through robust oversight and reducing the operational costs for smaller financial institutions. Many smaller banks and credit unions have argued that the extensive and often overlapping regulatory examinations, which are largely designed for larger, more complex financial firms, place an undue burden on them. This burden can tie up resources and add costs, potentially hindering their ability to serve local communities.
If this bill becomes law, it could free up resources for these institutions, potentially allowing them to invest more in their local economies, offer more competitive products to consumers, or simply reduce their operating expenses, which might prevent some costs from being passed on to customers. Without this bill, these smaller institutions would continue to face the current examination regime. Voters should care because the health and efficiency of local banks and credit unions directly impact access to loans, savings accounts, and other vital financial services in their communities.
KEY PROVISIONS
AI-extracted
high
Allows eligible well-managed and well-capitalized banks and credit unions with $6 billion or less in assets to alternate between full-scope and limited-scope examinations.
This provision directly reduces the frequency of comprehensive, on-site regulatory reviews for qualifying institutions.
high
Requires federal banking agencies and the NCUA to allow eligible institutions to combine separate examinations (e.g., safety & soundness, consumer compliance, IT/cybersecurity) upon request.
This streamlines the regulatory process, potentially saving time and resources for financial institutions by consolidating multiple inspections.
med
Excludes institutions currently subject to formal enforcement proceedings or, for banks, those that have undergone a change of control since their last full exam, from receiving examination relief.
This ensures that institutions with significant issues or recent ownership changes still receive full regulatory scrutiny.
med
Mandates federal banking agencies and the National Credit Union Administration to issue rules within 12 months to implement the examination relief procedures.
This sets a clear timeline for the regulatory bodies to develop the necessary framework and specific procedures for the new examination process.
Not later than 12 months after the date of enactment of this paragraph/subsection.
Federal banking agencies and the NCUA must issue rules to carry out the examination relief provisions for insured depository institutions and credit unions.
GLOSSARY
AI-written
Insured Depository Institution
A bank or savings association whose deposits are protected by the federal government through the Federal Deposit Insurance Corporation (FDIC).
Insured Credit Union
A not-for-profit financial cooperative whose deposits are protected by the federal government through the National Credit Union Administration (NCUA).
Well Capitalized
A financial institution that holds a strong amount of money in reserve compared to its loans and other assets, indicating financial strength and stability.
Well Managed
A financial institution that has demonstrated strong management practices, operational soundness, and a satisfactory or outstanding overall condition during its most recent regulatory examination.
Full-Scope, On-Site Examination
A comprehensive, in-person review by federal regulators of a financial institution's entire operations, financial health, and compliance with laws and regulations.
Limited-Scope Examination
A less extensive, more focused review by federal regulators that targets specific areas of a financial institution's operations rather than its entire business.
Regulatory Burden
ACTION TIMELINE
19 EVENTS
MAY 13
Received in the Senate and Read twice and referred to the Committee on Banking, Housing, and Urban Affairs.
INTROREFERRAL
MAY 12
Mr. Hill (AR) moved to suspend the rules and pass the bill, as amended.
FLOOR
MAY 12
Considered under suspension of the rules. (consideration: CR H3353-3356)
FLOOR
MAY 12
DEBATE - The House proceeded with forty minutes of debate on H.R. 4437.
