House BillHR 6554Congressional oversightAdvisory bodies
Community Bank Representation Act
INTRO DEC 10· LAST ACTION FEB 25
READING
5MIN
COSPONSORS
3
READER REACTIONS0 TOTAL
NO VOTES YET · BE THE FIRST
Reported, not passed
LEGISLATIVE PROGRESS
STEP 3 / 8
Introduced
In Committee
Reported
Passed House
Passed Senate
Conference
To President
Became Law
WHAT THE BILL DOES
AI-written
This bill matters because community banks are vital to local economies, providing essential services like small business loans, mortgages, and checking accounts to communities across the country. Often, regulations designed for very large, complex banks can be overly burdensome or inappropriate for smaller community banks. If this bill becomes law, it ensures that a dedicated voice at the highest level of banking regulation at the Federal Reserve is specifically advocating for and overseeing policies that affect these smaller institutions.
This could lead to more effective and proportional regulations for community banks, helping them to thrive and continue supporting their local communities. Without this bill, the specific focus and accountability for community bank supervision might remain less formalized, potentially leading to a "one-size-fits-all" regulatory approach that could disadvantage smaller banks.
KEY PROVISIONS
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PROVISION 01
Requires the Federal Reserve Chairman to select a Board member with community banking experience to focus on specific duties.
This formalizes and elevates the role of a community bank advocate within the Federal Reserve's leadership.
PROVISION 02
Expands the scope of banks this selected official will oversee to those with less than $17 billion in total assets, up from a previous implicit or explicit smaller threshold.
This means more community banks will benefit from the specialized focus and policy recommendations of this official.
PROVISION 03
Mandates that this community bank-focused Board member appear before Congress twice a year to report on their activities.
This increases transparency and accountability for the Federal Reserve's supervision and regulation of smaller banks.
PROVISION 04
Implements an annual adjustment of the $17 billion asset threshold based on changes in the nominal Gross Domestic Product (GDP).
This ensures the threshold remains relevant over time and reflects economic growth, preventing it from becoming outdated.
PROVISION 05
Requires the Governor leading the Federal Financial Institutions Examination Council (FFIEC) to consult with the community bank-focused Governor.
This integrates the community bank perspective into broader interagency banking examination standards and policies.
This bill matters because community banks are vital to local economies, providing essential services like small business loans, mortgages, and checking accounts to communities across the country. Often, regulations designed for very large, complex banks can be overly burdensome or inappropriate for smaller community banks. If this bill becomes law, it ensures that a dedicated voice at the highest level of banking regulation at the Federal Reserve is specifically advocating for and overseeing policies that affect these smaller institutions.
This could lead to more effective and proportional regulations for community banks, helping them to thrive and continue supporting their local communities. Without this bill, the specific focus and accountability for community bank supervision might remain less formalized, potentially leading to a "one-size-fits-all" regulatory approach that could disadvantage smaller banks.
KEY PROVISIONS
AI-extracted
high
Requires the Federal Reserve Chairman to select a Board member with community banking experience to focus on specific duties.
This formalizes and elevates the role of a community bank advocate within the Federal Reserve's leadership.
high
Expands the scope of banks this selected official will oversee to those with less than $17 billion in total assets, up from a previous implicit or explicit smaller threshold.
This means more community banks will benefit from the specialized focus and policy recommendations of this official.
med
Mandates that this community bank-focused Board member appear before Congress twice a year to report on their activities.
This increases transparency and accountability for the Federal Reserve's supervision and regulation of smaller banks.
med
Implements an annual adjustment of the $17 billion asset threshold based on changes in the nominal Gross Domestic Product (GDP).
This ensures the threshold remains relevant over time and reflects economic growth, preventing it from becoming outdated.
med
Requires the Governor leading the Federal Financial Institutions Examination Council (FFIEC) to consult with the community bank-focused Governor.
This integrates the community bank perspective into broader interagency banking examination standards and policies.
Semi-annual hearings before the Senate Banking Committee and House Financial Services Committee regarding community bank supervision and regulation efforts.
At the end of each year for which nominal GDP increases
Annual adjustment of the community bank asset threshold ($17 billion) based on nominal Gross Domestic Product (GDP) increases.
GLOSSARY
AI-written
Federal Reserve Act
The law that created the Federal Reserve System, which is the central bank of the United States.
Board of Governors of the Federal Reserve System
The main governing body of the Federal Reserve System, consisting of seven members appointed by the President and confirmed by the Senate, who oversee the country's monetary policy and banking supervision.
Community banks
Smaller, locally focused banks that typically serve a specific geographic area or community, as opposed to large national or international banks.
Vice Chairman for Supervision
A specific member of the Federal Reserve Board of Governors designated by the President to lead the Board's efforts in developing policy recommendations for financial supervision and regulation.
Federal Financial Institutions Examination Council (FFIEC)
An interagency body composed of U.S. financial regulatory agencies that works to promote uniform principles and standards for the examination of financial institutions.
Nominal Gross Domestic Product (GDP)
The total value of all goods and services produced in a country in a given period, measured at current market prices, without adjusting for inflation.
ACTION TIMELINE
7 EVENTS
FEB 25
Reported (Amended) by the Committee on Financial Services. H. Rept. 119-533.
COMMITTEE
FEB 25
Placed on the Union Calendar, Calendar No. 458.
CALENDARS
DEC 17, 25
Committee Consideration and Mark-up Session Held
COMMITTEE
DEC 17, 25
Ordered to be Reported (Amended) by the Yeas and Nays: 29 - 22.
The oversight and enforcement of rules for financial institutions to ensure they operate safely, fairly, and in compliance with laws, protecting consumers and the financial system.
