Small Bank Holding Company Relief Act
- Bill Number
- H.R. 2835
- Origin Chamber
- House
- Congress
- 119th Congress, Session 1
- Policy Area
- Finance and Financial Sector
- Status
- Introduced
- Latest Action
- 2025-07-15: Placed on the Union Calendar, Calendar No. 165.
- Last Updated
- 2026-05-02T19:06:20Z
AI-Generated Summary
Summary of H.R. 2835: Small Bank Holding Company Relief Act
Purpose
This legislation aims to provide relief to smaller bank holding companies and savings and loan holding companies by increasing the asset threshold that qualifies them for simplified regulatory treatment under Federal Reserve policies. It seeks to reduce regulatory burdens on these institutions, allowing them to operate more efficiently while maintaining financial stability.
Key Provisions
- Revision of Policy Statement: The Board of Governors of the Federal Reserve System (the Federal Reserve) must update Appendix C to Part 225 of Title 12 of the Code of Federal Regulations, known as the "Small Bank Holding Company and Savings and Loan Holding Company Policy Statement," within 180 days of the bill's enactment.
- Raised Asset Threshold: The consolidated assets threshold for qualifying as a "small" bank holding company or savings and loan holding company is increased to $25,000,000,000 (25 billion dollars). This threshold determines eligibility for less stringent regulatory requirements, such as simplified capital and dividend rules.
Significant Changes to Existing Law
- The current threshold under the policy statement is $3 billion (as established in prior regulations). This bill raises it substantially to $25 billion, expanding the number of institutions that can benefit from the policy's streamlined rules.
- No other major alterations to the underlying policy are specified; the change focuses solely on the asset limit to broaden its applicability without altering core regulatory standards.
Potential Impacts
- On Government Agencies: The Federal Reserve will need to implement the revision promptly, potentially reducing its supervisory workload for a larger group of smaller institutions by applying lighter oversight to those under the new threshold.
- On Citizens and Businesses: Smaller banks may face fewer regulatory hurdles, potentially leading to easier access to credit and loans for consumers and small businesses in rural or underserved areas, as these institutions can allocate more resources to lending rather than compliance.
- On International Relations: Minimal direct impact, as the bill addresses domestic banking regulations without affecting cross-border financial policies or foreign entities.
Main Stakeholders Affected
- Bank Holding Companies and Savings and Loan Holding Companies: Smaller institutions (now up to $25 billion in assets) will gain regulatory relief, easing operations and costs.
- Federal Reserve System: Responsible for enacting and enforcing the changes, which could streamline its regulatory processes.
- Consumers and Local Economies: Indirect beneficiaries through potentially improved banking services in communities served by these smaller banks.
- Larger Financial Institutions: May face indirect competition from relieved smaller banks but are unlikely to be directly affected.
Notable Legal, Constitutional, or Political Implications
- Legal Implications: The bill delegates implementation to the Federal Reserve, relying on its authority under existing banking laws (e.g., the Bank Holding Company Act). It could face challenges if perceived as weakening financial safeguards post-2008 crisis, though it maintains the policy's framework.
- Constitutional Implications: None significant; it aligns with Congress's enumerated powers to regulate interstate commerce and banking under Article I, Section 8.
- Political Implications: Sponsored by House members focused on financial services, it reflects bipartisan interest in deregulation for community banks amid economic recovery efforts. Passage could signal a push to support smaller financial players without broad systemic changes, potentially influencing future banking reform debates.
This summary was generated by AI and may contain inaccuracies. Refer to the official source document for the authoritative text.
Sponsor
Cosponsors (6)
Rep. Haridopolos, Mike [R-FL-8], Rep. Lucas, Frank D. [R-OK-3], Rep. Downing, Troy [R-MT-2], Rep. Barr, Andy [R-KY-6], Rep. De La Cruz, Monica [R-TX-15], Rep. Sessions, Pete [R-TX-17]
Recent Actions
- 2025-07-15: Placed on the Union Calendar, Calendar No. 165.
- 2025-07-15: Reported (Amended) by the Committee on Financial Services. H. Rept. 119-202.
- 2025-07-15: Reported (Amended) by the Committee on Financial Services. H. Rept. 119-202.
- 2025-06-10: Ordered to be Reported (Amended) by the Yeas and Nays: 30 - 20.
- 2025-06-10: Committee Consideration and Mark-up Session Held
- 2025-04-10: Referred to the House Committee on Financial Services.
- 2025-04-10: Introduced in House
- 2025-04-10: Introduced in House
Bill Versions
- Small Bank Holding Company Relief Act — issued 2025-04-10 — PDF (2 pages)
- Small Bank Holding Company Relief Act — issued 2025-07-15 — PDF (4 pages)