119-s427

[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[S. 427 Introduced in Senate

    (IS) ]

<DOC>

119th CONGRESS
 1st Session
 S. 427

 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 SENATE OF THE UNITED STATES

 February 5, 2025

 Mr. Rounds (for himself, Mr. Tillis, Mr. Hagerty, Ms. Lummis, Mr. 
 Cramer, and Mr. Daines) introduced the following bill; which was read 
 twice and referred to the Committee on Banking, Housing, and Urban 
 Affairs

_______________________________________________________________________

 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) , each Federal financial institutions regulatory agency 
shall consider--

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

    (2) the potential impact that efforts to implement the 
 regulatory action and third-party service provider actions may 
 work to undercut efforts to tailor the regulatory action 
 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.--

    (1) Individual agency reports.--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 regulations issued in 
 final form pursuant to statutes enacted during the 
 period beginning on the date that is 7 years before the 
 date on which this Act is introduced in the Senate 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.
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