Sec. 611. Promoting New Bank Formation
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The Federal banking agencies may issue rules that provide for a 2-year phase-in period for a qualifying community bank or its depository institution holding company to meet any Federal capital requirements that would otherwise be applicable to the qualifying community bank or its depository institution holding company, beginning on— the date on which the qualifying community bank became an insured depository institution; or in the case of its depository institution holding company, the date on which the qualifying community bank of the depository institution holding company became an insured depository institution.
During the 2-year period beginning on the date on which a qualifying community bank became an insured depository institution, the qualifying community bank or its depository institution holding company may request to deviate from a business plan that has been approved by the appropriate Federal banking agency by submitting a request to such agency pursuant to this section. The appropriate Federal banking agency shall, not later than the end of the 90-day period beginning on the receipt of a request under paragraph (1)— approve, conditionally approve, or deny such request; and notify the applicant of such decision and, if the agency denies the request— provide the applicant with the reason for such denial; and suggest changes to the request that, if adopted, would allow the agency to approve such request.
If the appropriate Federal banking agency fails to approve or deny a request within the 90-day period required under paragraph (2), such request shall be deemed to be approved. The Federal banking agencies shall, jointly, carry out a study on the impact of the pilot program carried out pursuant to subsections
(a)and
(b)of this section on the formation of de novo insured depository institutions, including such institutions which are rural depository institutions, community development financial institutions, and minority depository institutions, taking into account safety and soundness, promoting competition, and expanding access to affordable financial products and services to underserved communities. Not later than December 31, 2031, the Federal banking agencies shall, jointly, issue 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 all findings and determinations made in carrying out the study required under paragraph (1). The Federal banking agencies shall, jointly, carry out a study on— the principal causes for the low number of de novo insured depository institutions in the 10-year period ending on the date of enactment of this subsection; ways to promote more de novo insured depository institutions in areas currently underserved by insured depository institutions; and ways to ensure de novo depository institutions, including institutions which are rural depository institutions, community development financial institutions, and minority depository institutions, can utilize the Community Bank Leverage Ratio. Not later than the end of the 1-year period beginning on the date of enactment of this Act, the Federal banking agencies shall, jointly, issue 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 all findings and determinations made in carrying out the study required under paragraph (1). In this section: The term appropriate Federal banking agency has the meaning given the term in section 3 of the Federal Deposit Insurance Act ( 12 U.S.C. 1813 ). The term depository institution has the meaning given the term in section 3 of the Federal Deposit Insurance Act ( 12 U.S.C. 1813 ). The term depository institution holding company has the meaning given the term in section 3 of the Federal Deposit Insurance Act ( 12 U.S.C. 1813 ). The term Federal banking agency has the meaning given the term in section 3 of the Federal Deposit Insurance Act ( 12 U.S.C. 1813 ). 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 ). The term qualifying community bank means a depository institution that— including its holding company and all of its subsidiaries and affiliates, has total combined assets of less than $10,000,000,000; and became an insured depository institution between January 1, 2026, and December 31, 2028.
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Sec. 611
Promoting New Bank Formation
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