Bill Summary
The "Financial Institution Regulatory Tailoring Enhancement Act" is a legislative bill aimed at increasing the asset thresholds that determine when financial institutions are subject to certain regulatory requirements. Specifically, the bill raises the threshold from $10 billion to $50 billion in various sections of existing laws, including the Consumer Financial Protection Act, the Bank Holding Company Act, and the Truth in Lending Act.
By adjusting these thresholds, the bill seeks to reduce the regulatory burden on larger financial institutions, which may allow them greater flexibility in their operations. The changes would affect supervision by the Consumer Financial Protection Bureau, the Volcker Rule's restrictions on proprietary trading, the requirements for qualified mortgages, and capital requirements under the Economic Growth, Regulatory Relief, and Consumer Protection Act. Overall, the legislation is designed to tailor regulatory oversight to better align with the size and complexity of financial institutions.
Possible Impacts
The "Financial Institution Regulatory Tailoring Enhancement Act" proposes to increase the asset thresholds for certain regulatory requirements for financial institutions. Here are three examples of how this legislation could affect people:
1. **Increased Access to Financial Services**: With the asset threshold for regulatory requirements raised from $10 billion to $50 billion, smaller financial institutions, such as community banks and credit unions, may face fewer regulatory burdens and costs. This could lead to more competitive financial products and services for consumers, as these institutions may be able to offer better rates and lower fees. As a result, individuals and businesses may find it easier to access credit and banking services.
2. **Potential Risks to Consumer Protection**: Raising the asset thresholds may lead to less oversight of larger financial institutions, which could increase the risk of misconduct or financial instability. If these institutions are subjected to fewer regulations, it may result in less protection for consumers, especially in areas such as lending practices and mortgage requirements. This could potentially lead to a situation where consumers are not adequately safeguarded against predatory practices or poor financial products.
3. **Impact on Market Competition**: By exempting larger financial institutions from certain requirements, this legislation may inadvertently strengthen the market dominance of these institutions, as they may have greater leverage to engage in riskier business practices without the same level of regulatory scrutiny. This could reduce competition in the financial services market, making it harder for smaller institutions to compete and potentially leading to fewer choices for consumers. Over time, this could result in higher costs for consumers as competition diminishes.
[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[H.R. 3230 Reported in House (RH)]
<DOC>
Union Calendar No. 132
119th CONGRESS
1st Session
H. R. 3230
[Report No. 119-165]
To increase the asset thresholds at which financial institutions become
subject to certain requirements, and for other purposes.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
May 7, 2025
Mr. Barr (for himself and Mr. Meuser) introduced the following bill;
which was referred to the Committee on Financial Services
June 20, 2025
Additional sponsor: Mr. Sessions
June 20, 2025
Reported with an amendment, committed to the Committee of the Whole
House on the State of the Union, and ordered to be printed
[Strike out all after the enacting clause and insert the part printed
in italic]
[For text of introduced bill, see copy of bill as introduced on May 7,
2025]
_______________________________________________________________________
A BILL
To increase the asset thresholds at which financial institutions become
subject to certain requirements, 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 ``Financial Institution Regulatory
Tailoring Enhancement Act''.
SEC. 2. INCREASED ASSET THRESHOLDS.
(a) Bureau Supervision.--The Consumer Financial Protection Act of
2010 is amended--
(1) in section 1025(a) (12 U.S.C. 5515(a)), by striking
``$10,000,000,000'' each place it occurs and inserting
``$50,000,000,000''; and
(2) in section 1026(a) (12 U.S.C. 5516(a)), by striking
``$10,000,000,000'' each place it occurs and inserting
``$50,000,000,000''.
(b) Volker Rule Requirements.--Section 13(h)(1)(B)(i) of the Bank
Holding Company Act of 1956 (12 U.S.C. 1851(h)(1)(B)(i)) is amended by
striking ``$10,000,000,000'' and inserting ``$50,000,000,000''.
(c) Qualified Mortgage Requirements.--Section 129C(b)(2)(F)(i) of
the Truth in Lending Act (15 U.S.C. 1639c(b)(2)(F)(i)) is amended by
striking ``$10,000,000,000'' and inserting ``$50,000,000,000''.
(d) Leverage and Risk-based Capital Requirements.--Section
201(a)(3)(A) of the Economic Growth, Regulatory Relief, and Consumer
Protection Act (12 U.S.C. 5371 note) is amended by striking
``$10,000,000,000'' and inserting ``$50,000,000,000''.
Union Calendar No. 132
119th CONGRESS
1st Session
H. R. 3230
[Report No. 119-165]
_______________________________________________________________________
A BILL
To increase the asset thresholds at which financial institutions become
subject to certain requirements, and for other purposes.
_______________________________________________________________________
June 20, 2025
Reported with an amendment, committed to the Committee of the Whole
House on the State of the Union, and ordered to be printed