119-hr3380

[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[H.R. 3380 Reported in House

    (RH) ]

<DOC>

 Union Calendar No. 104
119th CONGRESS
 1st Session
 H. R. 3380

 [Report No. 119-135]

 To require the Federal financial institutions regulatory agencies to 
 take risk profiles and business models of institutions into account 
 when taking regulatory actions, and for other purposes.

_______________________________________________________________________

 IN THE HOUSE OF REPRESENTATIVES

 May 14, 2025

Mr. Loudermilk introduced the following bill; which was referred to the 
 Committee on Financial Services

 June 4, 2025

 Additional sponsor: Mr. Downing

 June 4, 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 14, 
 2025]

_______________________________________________________________________

 A BILL

 To require the Federal financial institutions regulatory agencies to 
 take risk profiles and business models of institutions into account 
 when taking regulatory actions, 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 ``Taking Account of Institutions with 
Low Operation Risk Act of 2025'' or the ``TAILOR Act of 2025''.

SEC. 2. TAILORING REGULATION TO BUSINESS MODEL AND RISK.

    (a) 

=== Definitions. ===
-In this section--

    (1) the term ``Federal financial institutions regulatory 
 agency'' means the Office of the Comptroller of the Currency, 
 the Board of Governors of the Federal Reserve System, the 
 Federal Deposit Insurance Corporation, the National Credit 
 Union Administration, and the Bureau of Consumer Financial 
 Protection; and

    (2) the term ``regulatory action''--
        (A) means any proposed, interim, or final rule or 
 regulation; and
        (B) does not include any action taken by a Federal 
 financial institutions regulatory agency that is solely 
 applicable to an individual institution, including an 
 enforcement action or order.

    (b) Consideration and Tailoring.--For any regulatory action 
occurring after the date of enactment of this Act, each Federal 
financial institutions regulatory agency shall--

    (1) take into consideration the risk profile and business 
 models of each type of institution or class of institutions 
 subject to the regulatory action; and

    (2) tailor the regulatory action applicable to an 
 institution, or type of institution, in a manner that limits 
 the regulatory impact, including cost, human resource 
 allocation, and other burdens, on the institution or type of 
 institution as is appropriate for the risk profile and business 
 model involved.
            (c) Factors to Consider.--In carrying out the requirements of 
subsection

    (b) with respect to a regulatory action, each Federal 
financial institutions regulatory agency shall consider--

    (1) the aggregate effect of all applicable regulatory 
 actions on the ability of institutions to flexibly serve 
 customers of the institutions and local markets on and after 
 the date of enactment of this Act;

    (2) the potential that efforts to implement the regulatory 
 action and third-party service provider actions may work to 
 undercut efforts to tailor the regulatory action, as described 
 in subsection

    (b)

    (2) ; and

    (3) the statutory provision authorizing the regulatory 
 action, the congressional intent with respect to the statutory 
 provision, and the underlying policy objectives of the 
 regulatory action.
            (d) Notice of Proposed and Final Rulemaking.--Each Federal 
financial institutions regulatory agency shall disclose and document in 
every notice of proposed rulemaking and in any final rulemaking for a 
regulatory action how the agency has applied subsections

    (b) and
            (c) .

    (e) Reports to Congress.--Not later than 1 year after the date of 
enactment of this Act and annually thereafter, each Federal financial 
institutions regulatory agency shall submit to the Committee on 
Banking, Housing, and Urban Affairs of the Senate and the Committee on 
Financial Services of the House of Representatives a report on the 
specific actions taken to tailor the regulatory actions of the Federal 
financial institutions regulatory agency pursuant to the requirements 
of this section.

    (f) Limited Look-back Application.--

    (1) In general.--Each Federal financial institutions 
 regulatory agency shall--
        (A) conduct a review of all final regulations 
 issued pursuant to statutes enacted during the period 
 beginning on the date that is 15 years before the date 
 on which this Act is introduced in the House of 
 Representatives and ending on the date of enactment of 
 this Act; and
        (B) apply the requirements of this section to the 
 regulations described in subparagraph
        (A) .

    (2) Revision.--Any regulation revised under paragraph

    (1) shall be revised not later than 3 years after the date of 
 enactment of this Act.

SEC. 3. SHORT-FORM CALL REPORTS FOR ALL BANKS ELIGIBLE FOR THE 
 COMMUNITY BANK LEVERAGE RATIO.

 The appropriate Federal banking agencies, as defined in 

section 3 
of the Federal Deposit Insurance Act (12 U.S.C. 1813), shall promulgate 
regulations establishing a reduced reporting requirement for all banks 
eligible for the Community Bank Leverage Ratio, as defined in 

section 201

    (a) of the Economic Growth, Regulatory Relief, and Consumer 
Protection Act (12 U.S.C. 5371 note), when making the first and third 
report of condition of a year as required by 

section 7

    (a) of the 
Federal Deposit Insurance Act (12 U.S.C. 1817

    (a) ).

SEC. 4. REPORT TO CONGRESS ON MODERNIZATION OF SUPERVISION.

 Not later than 18 months after the date of enactment of this Act, 
the appropriate Federal banking agencies, as defined in 

section 3 of 
the Federal Deposit Insurance Act (12 U.S.C. 1813), in consultation 
with State bank supervisors, shall submit to the Committee on Banking, 
Housing, and Urban Affairs of the Senate and the Committee on Financial 
Services of the House of Representatives a report on the modernization 
of bank supervision, including the following factors:

    (1) Changing bank business models.

    (2) Examiner workforce and training.

    (3) The structure of supervisory activities within banking 
 agencies.

    (4) Improving bank-supervisor communication and 
 collaboration.

    (5) The use of supervisory technology.

    (6) Supervisory factors uniquely applicable to community 
 banks.

    (7) Changes in statutes necessary to achieve more effective 
 supervision.
 Union Calendar No. 104

119th CONGRESS

 1st Session

 H. R. 3380

 [Report No. 119-135]

_______________________________________________________________________

 A BILL

 To require the Federal financial institutions regulatory agencies to 
 take risk profiles and business models of institutions into account 
 when taking regulatory actions, and for other purposes.

_______________________________________________________________________

 June 4, 2025

 Reported with an amendment, committed to the Committee of the Whole 
 House on the State of the Union, and ordered to be printed