Bill Summary
The "Enhancing Bank Resolution Participation Act" is a piece of legislation designed to direct the Comptroller of the Currency, the Federal Deposit Insurance Corporation (FDIC), and the Federal Reserve to conduct a comprehensive study regarding two key financial concepts: shelf charters and modified bidder qualification processes.
The act mandates an examination of the historical use of shelf charters, which are essentially pre-approved banking charters that can be activated under certain conditions, and the FDIC's modified process for qualifying bidders in the acquisition of assets from failed banks. The study will assess how these mechanisms were utilized, particularly in relation to any bank receiverships in 2023, and evaluate their potential benefits, such as increasing competition, safeguarding the Deposit Insurance Fund, and enhancing financial stability.
Furthermore, the institutions involved are required to report their findings within one year of the act's enactment, including any identified regulatory barriers and recommendations for legislative changes to improve the effectiveness of these processes in future bank resolutions. Overall, the act seeks to enhance the participation and efficiency of the resolution process for failed banks, thereby contributing to a more robust financial system.
Possible Impacts
The "Enhancing Bank Resolution Participation Act" could affect people in several ways, particularly in relation to banking and financial services. Here are three examples:
1. **Increased Access to Banking Services**: The study on shelf charters and modified bidder qualification processes aims to explore ways to expand the pool of participants in acquiring assets from failed banks. If successful, this could lead to more institutions entering the market, which can enhance competition and result in better financial products and services for consumers. Increased competition might lead to lower fees, better interest rates, and improved customer service.
2. **Enhanced Financial Stability**: By analyzing how shelf charters and modified bidder qualification processes could strengthen financial stability, the legislation may lead to measures that reduce the risk of bank failures in the future. If banks are better capitalized and more diverse, consumers may feel more secure in their deposits, knowing that their funds are less likely to be at risk during economic downturns. This could also reduce the likelihood of consumers needing to rely on government bailouts during financial crises.
3. **Impact on Deposit Insurance Fund**: The study’s focus on whether increased use of shelf charters could protect the Deposit Insurance Fund has direct implications for taxpayers and consumers. If the Fund is better protected, this may reduce the need for government intervention and financial bailouts, ultimately leading to a more stable banking environment. This can result in lower costs for taxpayers, as they might not have to cover losses incurred by failing banks, and it can also enhance consumer confidence in the banking system overall.
[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[H.R. 6555 Reported in House (RH)]
<DOC>
Union Calendar No. 459
119th CONGRESS
2d Session
H. R. 6555
[Report No. 119-534]
To require the Comptroller of the Currency and the Federal Deposit
Insurance Corporation to carry out a study on shelf charters and
modified bidder qualification processes, and for other purposes.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
December 10, 2025
Mr. Huizenga introduced the following bill; which was referred to the
Committee on Financial Services
February 25, 2026
Additional sponsors: Mr. Gottheimer and Mr. Lawler
February 25, 2026
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
December 10, 2025]
_______________________________________________________________________
A BILL
To require the Comptroller of the Currency and the Federal Deposit
Insurance Corporation to carry out a study on shelf charters and
modified bidder qualification processes, 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 ``Enhancing Bank Resolution
Participation Act''.
SEC. 2. STUDY ON SHELF CHARTERS AND MODIFIED BIDDER QUALIFICATION
PROCESSES.
(a) Study.--The Comptroller of the Currency, the Federal Deposit
Insurance Corporation, and the Board of the Governors of the Federal
Reserve System shall, jointly, carry out a study of--
(1) the use by the Comptroller of the Currency of shelf
charters, including all conditional or preliminary shelf
charter approvals granted between January 1, 2008, and the date
of enactment of this Act;
(2) the use by the Federal Deposit Insurance Corporation of
the modified bidder qualification process;
(3) the application of the Bank Holding Company Act of 1956
(12 U.S.C. 1841 et seq.) and section 10 of the Home Owners'
Loan Act (12 U.S.C. 1467a) to shelf charter proposals;
(4) whether shelf charters and modified bidder
qualification processes were considered or used in connection
with the receivership of any insured depository institution for
which the Federal Deposit Insurance Corporation was appointed
receiver in 2023;
(5) with respect to such receiverships, the extent to which
greater use of shelf charters and modified bidder qualification
processes could have--
(A) expanded the pool of participants in the
acquisition of the assets or liabilities of such failed
insured depository institutions;
(B) resulted in greater competition and diversity
in market outcomes;
(C) protected the Deposit Insurance Fund; or
(D) strengthened financial stability and reduced
the need for any emergency determination by the
Secretary of the Treasury under section 13(c)(4)(G) of
the Federal Deposit Insurance Act (12 U.S.C.
1823(c)(4)(G)) with respect to any such receivership;
(6) the impact of the use of shelf charters and modified
bidder qualification processes since January 1, 2008, including
on financial stability, the safety and soundness of affected
insured depository institutions, and the availability of
financial products and services provided to consumers by such
institutions; and
(7) any benefits and risks of private equity ownership of
banks through the use of shelf charters and modified bidder
qualification processes.
(b) Report.--Not later than 1 year after the date of enactment of
this Act, the Comptroller of the Currency, the Federal Deposit
Insurance Corporation, and the Board of the Governors of the Federal
Reserve System shall, jointly, submit a report to the Committee on
Financial Services of the House of Representatives and the Committee on
Banking, Housing, and Urban Affairs of the Senate containing--
(1) all findings and determinations made in carrying out
the study required under subsection (a); and
(2) an identification of statutory or regulatory barriers
to the use and effectiveness of shelf charters and modified
bidder qualification processes in the resolution of failed
insured depository institutions, including recommendations for
legislative and regulatory changes.
(c) Definitions.--In this section:
(1) Insured depository institution.--The term ``insured
depository institution'' has the meaning given the term in
section 3 of the Federal Deposit Insurance Act (12 U.S.C.
1813).
(2) Modified bidder qualification process.--The term
``modified bidder qualification process'' has the meaning given
such term in the press release of the Federal Deposit Insurance
Corporation titled ``FDIC Expands Bidder List for Troubled
Institutions Plan Allows Those Without a Bank Charter to
Participate in the Process'' published November 26, 2008.
(3) Shelf charter.--The term ``shelf charter'' has the
meaning given such term in the report issued by the Comptroller
of the Currency titled ``Activities Permissible for National
Banks and Federal Savings Associations, Cumulative'' published
October 2017.
Union Calendar No. 459
119th CONGRESS
2d Session
H. R. 6555
[Report No. 119-534]
_______________________________________________________________________
A BILL
To require the Comptroller of the Currency and the Federal Deposit
Insurance Corporation to carry out a study on shelf charters and
modified bidder qualification processes, and for other purposes.
_______________________________________________________________________
February 25, 2026
Reported with an amendment, committed to the Committee of the Whole
House on the State of the Union, and ordered to be printed