Bills · HR 478
REPORTED· 119TH CONGRESS
House BillHR 478Credit and credit marketsRural conditions and development
Promoting New Bank Formation Act
INTRO JAN 16· LAST ACTION MAY 6
READING
5MIN
COSPONSORS
24
READER REACTIONS0 TOTAL
NO VOTES YET · BE THE FIRST
- Reported, not passed
LEGISLATIVE PROGRESS
STEP 3 / 8Introduced
In Committee
Reported
Passed House
Passed Senate
Conference
To President
Became Law
WHAT THE BILL DOES
AI-writtenVoters should care about this bill because it addresses a significant decline in the number of new banks forming across the U.S. Over the past decade, it has become increasingly difficult to start a bank, leading to less competition and potentially fewer choices for consumers and businesses, especially in smaller towns. If this bill becomes law, it could foster more competition in the banking sector and improve access to local banking services, particularly in rural areas that are often underserved.
More banks, especially community banks, can mean more localized lending decisions and a better understanding of local economic needs. If the bill doesn't pass, the trend of declining new bank formations is likely to continue, potentially exacerbating issues of financial access and local economic support in many communities. This bill seeks to reverse that trend by reducing some of the initial regulatory hurdles, which could lead to more tailored financial products and services for everyday Americans and small businesses.
KEY PROVISIONS
5AI-extractedPROVISION 01
Requires federal banking agencies to establish a 3-year phase-in period for new banks to comply with full federal capital standards.
This gives new banks more time to build their financial strength without immediate full regulatory burden, potentially making it easier to start.
PROVISION 02
Allows new banks to request changes to their approved business plans during their first 3 years, with regulators required to respond within 30 days or the request is automatically approved.
This provides new banks crucial flexibility to adapt their strategies quickly during their critical early growth period.
PROVISION 03
Establishes a lower 8 percent Community Bank Leverage Ratio for new rural community banks for their first 3 years, with further phase-in flexibility.
This offers specific regulatory relief to encourage new banks in underserved rural areas, potentially increasing access to local banking services.
PROVISION 04
Amends existing law to allow federal savings associations to make secured or unsecured loans for agricultural purposes.
This expands lending options for farmers and agricultural businesses, potentially increasing competition and access to credit in rural areas.
PROVISION 05
Mandates a joint study by federal banking agencies on the causes of low new bank formation and ways to promote new banks in underserved areas.
This aims to understand and address the systemic issues hindering new bank creation, providing data for future policy decisions.
SPONSORSHIP
1 + 24
R· Kentucky
YRS IN OFFICE
13
BILLS LED
60
COSPONSOR BREAKDOWNBIPARTISAN · 0%
DEM 0 REP 24 IND 0
ACTION TIMELINE
6 EVENTSMAY 6
Reported (Amended) by the Committee on Financial Services. H. Rept. 119-90.
MAY 6
Placed on the Union Calendar, Calendar No. 64.
APR 2
Committee Consideration and Mark-up Session Held
APR 2
Ordered to be Reported (Amended) by the Yeas and Nays: 28 - 21.
BILL INFO
TypeHouse Bill
NumberHR 478
Congress119th
StatusReported
IntroducedJan 16, 2025
Last actionMay 6, 2025
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REPORTED· 119TH CONGRESS · FINANCIAL SERVICES COMMITTEE · INTRODUCED JAN 16, 2025
House BillHR 478Credit and credit marketsRural conditions and development
Promoting New Bank Formation Act
INTRODUCED JAN 16, 2025· LAST ACTION MAY 6, 2025
PASSAGE CHANCES
—%
READING
5 min
COSPONSORS
24
COMPLEXITY
Moderate
