Bill Summary
The "Promoting Diversity and Inclusion in Banking Act of 2020" is a bill that aims to amend the Dodd-Frank Wall Street Reform and Consumer Protection Act. The amendment would require Federal banking regulators to include a diversity and inclusion component in the Uniform Financial Institutions Rating System. This means that when rating a bank or financial institution, regulators must consider factors such as the institution's policies for promoting diversity and inclusion in hiring, providing employee training on these issues, and having designated officers or committees responsible for diversity and inclusion matters. Minority depository institutions would be exempt from certain examination procedures related to this component and would receive the highest rating.
Possible Impacts
1. This legislation could potentially lead to increased diversity and inclusion in the banking industry, as it requires banks to have policies and training in place to encourage diversity in hiring practices.
2. The legislation may also require smaller banks to designate a Diversity and Inclusion Officer, which could create job opportunities for individuals with a focus on diversity and inclusion.
3. For minority depository institutions, this legislation may result in exemptions from certain examination procedures, which could save time and resources for those banks.
[Congressional Bills 116th Congress]
[From the U.S. Government Publishing Office]
[H.R. 8160 Introduced in House (IH)]
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116th CONGRESS
2d Session
H. R. 8160
To amend the Dodd-Frank Wall Street Reform and Consumer Protection Act
to require Federal banking regulators to include a diversity and
inclusion component in the Uniform Financial Institutions Rating
System, and for other purposes.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
September 4, 2020
Mr. Green of Texas (for himself and Ms. Waters) introduced the
following bill; which was referred to the Committee on Financial
Services
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A BILL
To amend the Dodd-Frank Wall Street Reform and Consumer Protection Act
to require Federal banking regulators to include a diversity and
inclusion component in the Uniform Financial Institutions Rating
System, and for other purposes.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Promoting Diversity and Inclusion in
Banking Act of 2020''.
SEC. 2. DIVERSITY AND INCLUSION RATINGS.
(a) In General.--The Dodd-Frank Wall Street Reform and Consumer
Protection Act (12 U.S.C. 5301 et seq.) is amended by inserting after
section 342 the following:
``SEC. 342A. DIVERSITY AND INCLUSION RATINGS.
``(a) In General.--The Board of Governors, the Comptroller of the
Currency, the Corporation, and the National Credit Union Administration
Board, in assigning a rating to a depository institution under the
Uniform Financial Institutions Rating System (or an equivalent rating
by any such agency under a comparable rating system) shall include a
diversity and inclusion component that examines--
``(1) whether the depository institution has policies in
place to encourage diversity and inclusion in the hiring
practices of the institution;
``(2) whether the depository institution provides training
to the employees of the institution on diversity and inclusion;
and
``(3)(A) with respect to a depository institution with
total consolidated assets of $1,000,000,000 or less, whether
such depository institution has designated an individual to
serve as a Diversity and Inclusion Officer who reports to the
Chief Executive Officer of the institution on all diversity and
inclusion matters; or
``(B) with respect to a depository institution with total
consolidated assets of more than $1,000,000,000, whether such
depository institution--
``(i) has designated an individual to serve as a
Diversity and Inclusion Officer; and
``(ii) has established a committee for diversity
and inclusion that holds meetings quarterly and that
includes in its membership the Diversity and Inclusion
Officer designated under clause (i) and the Chief
Executive Officer of the institution.
``(b) Application to Minority Depository Institutions.--In carrying
out subsection (a) with respect to a minority depository institution
(as defined under section 308(b) of the Financial Institutions Reform,
Recovery, and Enforcement Act of 1989), the Board of Governors, the
Comptroller of the Currency, the Corporation, and the National Credit
Union Administration Board shall--
``(1) assign such institution the highest rating with
respect to the diversity and inclusion component described
under subsection (a); and
``(2) exempt such institution from any examination
procedures related to the diversity and inclusion component
described under subsection (a).''.
(b) Clerical Amendment.--The table of contents for the Dodd-Frank
Wall Street Reform and Consumer Protection Act is amended by inserting
after the item relating to section 342 the following:
``Sec. 342A. Diversity and inclusion ratings.''.
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