H.R. 6955 — what changed

added Section 908 of the 21st Century ROAD to Housing Act is amended—

added “(2) Safety and soundness determination; extension of pilot program

added “(A) Determination—Not earlier than January 1, 2031, and not later than June 30, 2031, the Federal banking agencies may, jointly, determine that subsections (a) and (b) have had a significant adverse effect on the safety and soundness of qualifying community banks.

added “(B) Extension—Unless the Federal banking agencies make the determination described in subparagraph (A), the authorities under subsections (a) and (b) shall be permanent.

added “(C) Termination—If the Federal banking agencies make the determination described in subparagraph (A)—

added “(i) subsections (a) and (b) shall only apply to a qualifying community bank that became an insured depository institution before the date of such determination; and

added “(ii) the Federal banking agencies shall 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, and make such report available to the public, containing such determination and the reasons for such determination.”

removed “(V) Agricultural loans—Secured or unsecured loans for agricultural purposes.”

added Section 104(b) of the Riegle Community Development and Regulatory Improvement Act of 1994 (12 U.S.C. 4703(b)) is amended by adding to the end the following:

added “(5) Annual testimony—The Secretary of the Treasury (or a designee of the Secretary) shall, at the discretion of the Chair of the Committee on Financial Services of the House of Representatives and the Chair of the Committee on Banking, Housing, and Urban Affairs of the Senate, annually testify before such committees (or a subcommittee of such committees) regarding—

added “(A) the operations of the Fund during the previous year;

added “(B) steps the Secretary and the Fund are taking to support community development financial institutions through the financial agent mentor-protégé program; and

added “(C) steps the Secretary and the Fund are taking to coordinate with regulators to ensure certification and reporting requirements are appropriately streamlined for community development financial institutions.”

added “(2) Limitation on guarantee amount—The Secretary may not guarantee any amount under the Program equal to an amount less than $25,000,000, but the total of all such guarantees in any fiscal year may not exceed $1,000,000,000.”

added “177. Periodic adjustments to thresholds

added “(a) In general

added “(1) Adjustment—Not later than 1 year after the date of enactment of this section, and every 5 years thereafter, the Board of Governors shall increase each threshold described in subsection (b) by the ratio, if greater than 1, of the annual value of the economic indicator selected by the Board of Governors as appropriate for that threshold under paragraph (2)(B) for the calendar year preceding the year in which the adjustment is calculated under this section, to the published annual value of such economic indicator for the calendar year preceding April 1, 2026.

added “(2) Selection of economic indicators—Not later than 3 months after the date of enactment of this section, the Board of Governors shall—

added “(A) complete a study on the advantages and disadvantages of the use of either nominal United States gross domestic product (as published by the Department of Commerce) or the Consumer Price Index (as published by the Department of Labor) to adjust periodically the quantitative regulatory thresholds described in subsection (b);

added “(B) for each threshold described in subsection (b), select either nominal United States gross domestic product (as published by the Department of Commerce) or the Consumer Price Index (as published by the Department of Labor) as appropriate for adjusting such threshold;

added “(C) transmit 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—

added “(i) all findings and determinations made in carrying out the study required under subparagraph (A); and

added “(ii) all selections made under subparagraph (B).

added “(b) Covered thresholds—The thresholds described in this subsection are the following:

added “(1) Each bank holding company or savings and loan holding company total consolidated asset amount in the second subsection (s) (relating to assessments) of section 11 of the Federal Reserve Act.

added “(2) Each bank holding company total consolidated asset amount in—

added “(A) sections 116(a), 121(a), 163(b), 164, 165(a)(1), 165(h)(2), 165(j)(1) of this Act; and

added “(B) section 401(f) of the Economic Growth, Regulatory Relief, and Consumer Protection Act.

added “(3) Each financial company total consolidated asset amount in section 165(i)(2)(A) of this Act.

added “(c) Currency of information—The values used in the calculation under subsection (a) shall be, as of the date of the calculation, the values most recently published by the Department of Commerce or Department of Labor, as appropriate.

added “(d) Rounding

added “(1) If any amount equal to or greater than $100,000,000,000 determined under subsection (a) for any period is not a multiple of $50,000,000,000, the amount shall be rounded up to the nearest $50,000,000,000.

added “(2) If any amount less than $100,000,000,000 determined under subsection (a) for any period is not a multiple of $5,000,000,000, the amount shall be rounded up to the nearest $5,000,000,000.

added “(e) Publication—Not later than April 5 of any calendar year in which an adjustment is required to be calculated under subsection (a), the Board of Governors shall publish in the Federal Register the amounts as so calculated.

added “(f) Implementation period—Any increase in amounts determined under subsection (a) shall take effect on January 1 of the year immediately succeeding the calendar year in which the increase is required to be calculated under subsection (a).

added “178. Periodic adjustments to thresholds established by rule

added “(a) Agency review—Not later than June 30, 2026, and the 1st day of each subsequent 5-year period, the Board of Governors, the Comptroller of the Currency, and the Corporation shall, to the extent applicable, review—

added “(1) any regulation—

added “(A) implementing section 165 of this Act; or

added “(B) making specific cross-reference to any regulation of the Board of Governors implementing section 165 of this Act; and

added “(2) any asset threshold or other quantitative threshold in such regulations implementing section 165 of this Act, or in such regulations making specific cross-reference to any regulation of the Board of Governors implementing section 165 of this Act, the amount of which is not prescribed by statute.

added “(b) Modifications required—The Board of Governors, the Comptroller of the Currency, and the Corporation shall modify any such thresholds identified by each review conducted under subsection (a) by the ratio, if greater than 1, of the annual value of the economic indicator selected by the agency as appropriate for that threshold under paragraph (1) for the calendar year preceding the year in which the adjustment is calculated under this section, to the published annual value of such economic indicator for the calendar year preceding the effective date of such threshold, as each respective agency shall determine as appropriate for such regulations. In making such determination, the Board of Governors, the Comptroller of the Currency, and the Corporation shall—

added “(1) not later than 3 months after the date of enactment of this subsection, for each threshold identified by each review conducted under subsection (a), select either nominal United States gross domestic product (as published by the Department of Commerce) or the Consumer Price Index (as published by the Department of Labor) as appropriate for adjusting such threshold, and use the values of such selected economic indicator most recently published as of the date of commencement of the review to compute the ratio described in this subsection;

added “(2) seek to establish, to the extent feasible, uniform thresholds for use by each such agency, taking into account the entities regulated by each such agency and the purposes for which such threshold was established; and

added “(3) seek to adjust such thresholds, to the extent feasible, with rounding consistent with section 177(d) of this Act.

added “(c) Report—Upon conclusion of each review required under subsection (a), each of the Board of Governors, the Comptroller of the Currency, and the Corporation shall transmit 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 a description of any modification of any regulation such agency made pursuant to subsection (b).”

removed “177. Periodic adjustments to thresholds to account for increases in current-dollar United States gross domestic product

removed “(a) In general—By April 1, 2031, and the 1st day of each subsequent 5-year period, the Board of Governors shall increase the thresholds described in subsection (b) by the ratio, if greater than 1, of the annual value of current-dollar United States gross domestic product, published by the Department of Commerce, for the calendar year preceding the year in which the adjustment is calculated under this section, to the published annual value of such index for the calendar year preceding April 1, 2026.

removed “(b) Covered thresholds—The thresholds described in this subsection are the following:

removed “(1) Each bank holding company or savings and loan holding company total consolidated asset amount in the second subsection (s) (relating to assessments) of section 11 of the Federal Reserve Act.

removed “(2) Each bank holding company total consolidated asset amount in—

removed “(A) sections 116(a), 121(a), 163(b), 164, 165(a)(1), 165(h)(2), and 165(j)(1) of this Act; and

removed “(B) section 401(f) of the Economic Growth, Regulatory Relief, and Consumer Protection Act.

removed “(3) Each financial company total consolidated asset amount in section 165(i)(2)(A) of this Act.

removed “(c) Currency of information—The values used in the calculation under subsection (a) shall be, as of the date of the calculation, the values most recently published by the Department of Commerce.

removed “(d) Rounding

removed “(1) If any amount equal to or greater than $100,000,000,000 determined under subsection (a) for any period is not a multiple of $50,000,000,000, the amount shall be rounded up to the nearest $50,000,000,000.

removed “(2) If any amount less than $100,000,000,000 determined under subsection (a) for any period is not a multiple of $5,000,000,000, the amount shall be rounded up to the nearest $5,000,000,000.

removed “(e) Publication—Not later than April 5 of any calendar year in which an adjustment is required to be calculated under subsection (a), the Board of Governors shall publish in the Federal Register the amounts as so calculated.

removed “(f) Implementation period—Any increase in amounts determined under subsection (a) shall take effect on January 1 of the year immediately succeeding the calendar year in which the increase is required to be calculated under subsection (a).

removed “178. Adjustments to thresholds established by rule to account for increases in current-dollar United States gross domestic product

removed “(a) Agency review—Not later than June 30, 2026, and the 1st day of each subsequent 5-year period, the Board of Governors, the Comptroller of the Currency, and the Corporation shall, to the extent applicable, review—

removed “(1) any regulation—

removed “(A) implementing section 165 of this Act; or

removed “(B) making specific cross-reference to any regulation of the Board of Governors implementing section 165 of this Act; and

removed “(2) any asset threshold or other quantitative threshold in such regulations implementing section 165 of this Act, or in such regulations making specific cross-reference to any regulation of the Board of Governors implementing section 165 of this Act, the amount of which is not prescribed by statute.

removed “(b) Modifications required—The Board of Governors, the Comptroller of the Currency, and the Corporation shall modify any such thresholds identified by each review conducted under subsection (a) by the ratio, if greater than 1, of the annual value of current-dollar United States gross domestic product, published by the Department of Commerce, for the calendar year preceding the year in which the modification is calculated under this section, to the published annual value of such index for the calendar year preceding the effective date of such threshold, as each respective agency shall determine as appropriate for such regulations. In making such determination, the Board of Governors, the Comptroller of the Currency, and the Corporation shall—

removed “(1) use the values for current-dollar United States gross domestic product most recently published by the Department of Commerce as of the date of commencement of the review;

removed “(2) seek to establish, to the extent feasible, uniform thresholds for use by each such agency, taking into account the entities regulated by each such agency and the purposes for which such threshold was established; and

removed “(3) seek to adjust such thresholds, to the extent feasible, with rounding consistent with section 177(d) of this Act.

removed “(c) Report—Upon conclusion of each review required under subsection (a), each of the Board of Governors, the Comptroller of the Currency, and the Corporation shall transmit 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 a description of any modification of any regulation such agency made pursuant to subsection (b).”

“1012. Amendments to the CAMELS Rating System

“(a) In general—The Council shall make recommendations to amend the Uniform Financial Institutions Rating System, and the CAMELS components thereunder, to—

“(1) establish articulable, clear, and reviewable criteria for assessing each CAMELS component;

“(2) revise the factors affecting each CAMELS component to derive a composite rating that more accurately reflects the material financial condition and risk profile of the financial institutions being rated;

changed “(3) either—revise the management component of the CAMELS components to limit the assessment under such component to articulable, clear, and reviewable measures of an institution’s management in relation to its risk profile;

removed “(A) eliminate the management component of the CAMELS rating system; or

removed “(B) revise the management component of the CAMELS rating system to limit the assessment under such component to articulable, clear, and reviewable measures of the governance and controls used to manage an institution’s risk profile;

“(4) ensure that composite ratings consider the financial institution’s compliance with—

“(A) section 21 of the Federal Deposit Insurance Act (12 U.S.C. 1829b);

“(B) chapter 2 of title I of Public Law 91–508 (12 U.S.C. 1951 et seq.);

“(C) subchapter II of chapter 53 of title 31, United States Code; and

“(D) any other applicable requirements and implementing regulations relating to the prevention of money laundering and terrorist financing; and

“(5) ensure that composite ratings are determined based on a transparent methodology that is limited to the objective criteria established for each CAMELS component.

“(b) Rulemaking—Not later than 12 months after the Council makes the recommendations required under subsection (a), the Federal financial institutions regulatory agencies shall, jointly, issue rules to carry out the recommendations described under subsection (a).

“(c) Public comment period—In issuing the rules required under subsection (b), the Federal financial institutions regulatory agencies shall—

“(1) publish a notice of proposed rulemaking with respect to such rules; and

“(2) provide for a public comment period of not less than 90 days.

“(d) Rule of construction—Nothing in this section may be construed to limit the authority of the Federal financial institutions regulatory agencies to take supervisory, adjudicatory, or enforcement actions to ensure the safety and soundness of financial institutions.”

“1013. Timeliness of examinations and examination reports

“(a) Timeliness of examinations—A Federal financial institutions regulatory agency shall complete any examination of a financial institution, other than a financial institution subject to a continuous or resident examination program, within 270 days of commencing the examination, except that such period may be extended by the Federal financial institutions regulatory agency by providing written notice to the financial institution describing with particularity the reasons that a longer period is needed.

“(b) Final examination report—A Federal financial institutions regulatory agency shall provide a final examination report to a financial institution, other than a financial institution subject to a continuous or resident examination program, not later than 90 days after the later of—

“(1) the exit interview for an examination of the institution; or

“(2) the provision of additional material information by the institution relating to the examination.

“(c) Exit interview requirement—Within 30 days of completing an examination for a financial institution not subject to a continuous or resident examination program, a Federal financial institutions regulatory agency shall conduct an exit interview with the financial institution’s senior management or the board of directors, except that such period may be extended by the Federal financial institutions regulatory agency by providing written notice to the institution describing with particularity the reasons that a longer period is needed to complete the exit interview.

“(d) Examination materials—Upon the written request of a financial institution, the Federal financial institutions regulatory agency shall include with the final report an appendix listing all examination or other factual information relied upon by the agency in support of a material supervisory determination.”

“1014. Timeliness of required prudential private letter rulings

“(a) Authority and regulation

“(1) In general—Each Federal financial institutions regulatory agency shall establish procedures providing that a covered financial institution may, upon application by the covered financial institution and with respect to a covered action, obtain written advice regarding—

“(A) the agency’s non-objection to the financial institution conducting a particular activity;

“(B) the agency’s interpretation of a law or regulation as applied to a particular matter;

“(C) the agency’s interpretation of how generally accepted accounting principles or accounting objectives, standards, and requirements apply to a particular matter; or

“(D) the agency’s application of any supervisory guidance, statement of policy, or interpretive rule to a particular matter.

“(2) Covered action defined—In this subsection and with respect to a covered financial institution, the term “covered action” means—

“(A) any action in connection with a regulated activity that the covered financial institution is taking or is intending to take, including—

“(i) entering into a transaction;

“(ii) issuing a product or service; or

“(iii) changing the corporate structure of the covered financial institution; and

“(B) a Federal financial institutions regulatory agency’s objection to the covered financial institution commencing or otherwise conducting an activity (including an action described in subparagraph (A)).

“(b) Contents of request—The procedures established under subsection (a) shall provide that a request for written advice made under the procedures shall be in writing and contain—

“(1) the nature of the request;

“(2) applicable facts relating to the matter;

changed “(3) applicable law, regulation, regulations, or generally accepted accounting principles relating to the matter; and

“(4) a summary of the request.

“(c) Response to request—A Federal financial institutions regulatory agency receiving a request for written advice under subsection (a) shall, not later than 30 days after receiving the request—

changed “(1) provide the financial institution making the request with written notification that the agency received confirming receipt of the request and stating whether the request contains all of the information required under subsection (b); and

“(2) if the request does not contain all of the information required under subsection (b)—

“(A) provide the financial institution with an explanation of what information is missing; and

“(B) notify the financial institution that the financial institution may provide the missing information to the agency within 30 days.

changed “(d) Providing missing information—If a Federal financial institutions regulatory agency informs the financial institution under subsection (c) that the request for written advice does not contain all the information required under subsection (b), the financial institution may provide the missing information to the Federal financial institutions regulatory agency during the 30-day period beginning on within 30 days of the date the financial institution receives the explanation of the missing information under subsection (c).

“(e) Determination—A Federal financial institutions regulatory agency receiving a request for written advice under the procedures established under subsection (a) shall provide the financial institution with a written response (or, for purposes of paragraph (3), notify the financial institution that a determination cannot be made)—

“(1) if the initial request contains the information required under subsection (b), not later than the end of the 60-day period beginning on the date the Federal financial institutions regulatory agency notifies the financial institution of the receipt of the request under subsection (c);

“(2) if the initial request does not contain the information required under subsection (b), but the financial institution provides the missing information during the 30-day period described under subsection (d), not later than the end of the 60-day period beginning on the date such missing information is provided; or

“(3) if the initial request does not contain the information required under subsection (b), and the financial institution does not provide the missing information during the 30-day period described under subsection (d), not later than the end of the 60-day period beginning on the end of such 30-day period.

“(f) Limited binding effect—Written advice issued by a Federal financial institutions regulatory agency under the procedures established under this section—

“(1) shall be binding on the agency with respect to the financial institution requesting the written advice and the specific facts described in the request;

“(2) may be relied upon by the financial institution requesting the written advice in good faith; and

“(3) shall not be binding on the agency with respect to any other person or institution and shall not be treated as precedent.

“(g) Confidentiality and privilege

“(1) Treatment of written advice—Written advice issued under this section, and any materials submitted in connection therewith, and the fact that a request for written advice was made shall be treated as confidential supervisory information and exempt from disclosure under section 552(b) of title 5, United States Code.

“(2) Publishing of anonymized or redacted summaries—A Federal financial institutions regulatory agency may publish anonymized or redacted summaries of rulings for informational purposes.

“(h) Modification or revocation—A Federal financial institutions regulatory agency may modify or revoke written advice issued under this section only if—

“(1) the requesting financial institution made a material misstatement or omission of fact;

“(2) there has been a change in controlling law; or

“(3) the ruling is inconsistent with a final rule or judicial decision issued after the date the written advice was issued.

“(i) Reasonable fees—Each Federal financial institutions regulatory agency may establish and collect a reasonable fee for the processing and issuance of any written advice issued under this section, and such fee—

“(1) shall be based on the estimated cost to the agency of reviewing, analyzing, and responding to the request;

“(2) may vary based on the complexity of the request or the size of the requesting institution; and

“(3) shall be prescribed by regulation.

“(j) Finality—Written advice issued under the procedures established under this section shall not be construed as a final agency action.”

“1015. Office of Independent Examination Review

“(a) Establishment—There is established in the Council an Office of Independent Examination Review (the “Office”).

“(b) Board of Independent Examination Review

“(1) In general—The head of the Office shall be the Board of Independent Examination Review, which shall be comprised of 3 members, appointed by the President, by and with the advice and consent of the Senate.

“(2) Qualifications—The President shall appoint 1 member of the Board from each of the following classes of individuals:

“(A) Individuals who have been employed by a Federal financial institutions regulatory agency.

“(B) Individuals who are not, and were not during the previous 5-year period, employed by a Federal financial institutions regulatory agency or a Federal reserve bank and who—

“(i) are a licensed attorney or a certified public accountant authorized to practice under the laws of a State, the District of Columbia, or a territory of the United States;

“(ii) have academic or private sector experience relating to financial services; or

“(iii) have relevant work-related experience in consumer affairs or compliance with consumer protection laws with respect to financial institutions.

“(C) Individuals with at least 10 years private sector financial services senior management-level experience.

“(3) Prohibition on certain individuals serving as a Board member—The President may not appoint an individual as a member of the Board if the individual—

“(A) is, or was during the previous 2-year period, employed by a Federal financial institutions regulatory agency or a Federal reserve bank; or

“(B) is, or was during the previous 2-year period, employed by a financial institution.

“(4) Consultation—In appointing members of the Board, the President shall consult with the Federal financial institutions regulatory agencies and financial institutions.

“(5) Term

“(A) In general—Each member of the Board shall serve for a term of 3 years. Upon the expiration of a member’s terms of office, the member shall continue to serve until the member’s successor has been confirmed by the Senate.

“(B) Term limitation—No individual may serve more than 2 full terms on the Board.

“(6) Political affiliation—Not more than 2 members of the Board shall be members of the same political party.

“(7) Quorum

“(A) In general—3 members of the Board shall constitute a quorum.

“(B) Initial quorum—During the 6-month period beginning on the date of enactment of this section, 1 member of the Board shall constitute a quorum until the Board has 3 members.

“(8) Rate of pay—The annual rate of basic pay for the members of the Board shall be the rate of basic pay for Level IV of the Executive Schedule under section 5315 of title 5, United States Code.

“(c) Staffing—The Board is authorized to hire staff to support the activities of the Office of Independent Examination Review, and set the salaries of such staff. One-fifth of the costs and expenses of the Office, including the salaries of its employees, shall be paid by each of the Federal financial institutions regulatory agencies. Annual assessments for such share shall be levied by the Council based upon its projected budget for the year, and additional assessments may be made during the year if necessary.

“(d) Duties—The Board shall—

“(1) receive and, at the discretion of the Board, investigate complaints from financial institutions, their representatives, or another entity acting on behalf of such institutions, concerning completed examinations, examination practices, or examination reports;

“(2) hold meetings, at least once every three months and in locations designed to encourage participation from all sections of the United States, with financial institutions, their representatives, or another entity acting on behalf of such institutions, to discuss examination procedures, examination practices, or examination policies;

“(3) review examination procedures of the Federal financial institutions regulatory agencies to ensure that the written examination policies of those agencies are being followed in practice and adhere to the standards for consistency;

changed “(4) conduct a continuing and regular program of examination quality assurance on a sample for all examination types conducted by the Federal financial institutions regulatory agencies;

“(5) carry out an independent review of any supervisory appeal initiated under section 1016; and

“(6) report annually to the Committee on Financial Services of the House of Representatives, the Committee on Banking, Housing, and Urban Affairs of the Senate, and the Council, on the reviews carried out pursuant to paragraphs (3) and (5), including compliance with the requirements set forth in section 1014 regarding timeliness of examination reports, and the Board’s recommendations for improvements in examination procedures, practices, and policies.

“(e) Confidentiality

“(1) In general—The Board and the Council shall keep confidential—

“(A) all meetings, discussions, and information provided by financial institutions and Federal financial institutions regulatory agencies that involve confidential supervisory information or privileged information;

“(B) all information and communications exchanged between a financial institution and the Office of Independent Examination Review; and

“(C) all information and communications exchanged between a Federal financial institutions regulatory agency and the Office of Independent Examination Review.

changed “(2) Submission of information does not constitute a waiver—Section 18(x) of the Federal Deposit Insurance Act (12 U.S.C. 1828(x)) and section 205(j) of the Federal Credit Union Act (12 U.S.C. 1785(j)) shall apply to the submission of information to the Board by a financial institution or a Federal financial institutions regulatory agency to the same extent as such section sections 18(x) applies and 205(j) apply to the submission of information described in that section 18(x).such sections 18(x) and 205(j).

“(3) Sharing of information without waiving privilege—The Board shall be considered a “covered agency” for purposes of section 11(t) of the Federal Deposit Insurance Act (12 U.S.C. 1821(t)).”

“(4) the term Board means the Board of Independent Examination Review established under section 1015(b);

“(5) the term material supervisory determination has the meaning given such term in section 309(c) of the Riegle Community Development and Regulatory Improvement Act of 1994;

“(6) the term insured depository institution has the meaning given that term in section 3 of the Federal Deposit Insurance Act; and

“(7) the term insured credit union has the meaning given that term in section 101 of the Federal Credit Union Act.”

“1016. Right to independent review of material supervisory determinations

changed “(a) In general—A financial institution shall have the right to obtain an independent review, as described in this section, of a material supervisory determination contained in a final report of examination.examination. A Federal financial institutions regulatory agency and the Board may not conduct concurrent reviews.

“(b) Notice

“(1) Timing—A financial institution seeking review of a material supervisory determination under this section shall file a written notice with the Board within 30 days after receiving the final report of examination that is the subject of such review.

“(2) Extension—The institution may file a written request with the Board for an extension of the 60-day time period described under paragraph (1), which shall state good cause for granting the extension. Such request shall be granted in the sole discretion of the Board.

“(3) Identification of determination—The written notice shall—

“(A) identify the material supervisory determination that is the subject of the requested independent examination review;

“(B) state the reasons why the institution believes that the material supervisory determination is incorrect or should otherwise be modified; and

“(C) include—

“(i) a clear and complete statement of all relevant facts and issues;

“(ii) all arguments that the institution wishes to present; and

“(iii) all relevant and material documents in the possession of the institution that the institution wishes to be considered.

changed “(4) Information made available to institution—An institution—A financial institution seeking a review of a material supervisory determination may, not later than 7 days after receiving the final examination report, request that the Federal financial institutions regulatory agency that made the material supervisory determination provide the financial institution with all examination and factual information relied upon by the Federal financial institutions regulatory agency in making the material supervisory determination. The Federal financial institutions regulatory agency shall provide that such information to the financial institution not later than 14 days after receiving the request.

“(5) Submission of record—After receiving a written notice of review from a financial institution under this subsection, the Board shall direct the Federal financial institutions regulatory agency that made the material supervisory determination under review to file with the Board the supervisory record of the examination resulting in the material supervisory determination under review.

“(c) Determination; right to hearing

“(1) In general—The Board shall—

“(A) determine the merits on the record, including whether the material supervisory determination being reviewed should be upheld, canceled, or modified; or

changed “(B) at the election of the financial institution, conduct a hearing, which shall take place not later than 60 days after the petition for review is received by the Board.Board, except that such 60-day period may be extended if both the financial institution and the Board agree to such extension.

“(2) Right to obtain testimony—A financial institution electing for a hearing under paragraph (1)(B) shall have the right the obtain testimony under oath from agency employees and obtain documents and other evidence at the hearing, or in advance of the hearing, according to procedures instituted by the Board consistent with those set forth under sections 556 and 557 of title 5, United States Code.

changed “(3) Basis of decision—The Board shall issue a written decision based upon the record of the examination, supplemented by the record established before the Board and at any hearing.

changed “(4) Standard of review—The Board’s review of a material supervisory determination being reviewed under this subsection shall be de novo, and the Board shall not defer to the opinions of examiners, the examiners or the Federal financial institutions regulatory agency, but shall independently determine the appropriateness of the material supervisory determination based upon the relevant statutes, regulations, other appropriate guidance, and the evidentiary record.

“(5) Policy matters—The Board shall conduct reviews under this section applying the policies, regulations, and interpretations of the Federal financial institutions regulatory agency that made the material supervisory determination under review in effect at the time the material supervisory determination was made.

“(d) Final decision—A decision by the Board on an independent review under this section shall—

“(1) be made not later than 60 days after the record has been closed; and

“(2) be deemed final and shall bind the agency whose supervisory determination was the subject of the review and the financial institution requesting the review.

“(e) Referral of violations—If the Board, in carrying out this section, determines that a financial institution has violated a law or regulation, the Board shall refer such determination to the applicable Federal financial institutions regulatory agency.

“(f) Annual report

“(1) In general—The Board shall report annually to the Committee on Financial Services of the House of Representatives, the Committee on Banking, Housing, and Urban Affairs of the Senate, and the Council on actions taken under this section, including the types of issues that the Board has reviewed and the results of those reviews, including information on each final determination with respect to a material supervisory determination.

“(2) Confidentiality—In reporting under paragraph (1), the Board shall redact information about individual financial institutions and any confidential supervisory information or privileged information shared by financial institutions, and shall anonymize any un-redacted information that could, in the aggregate, identify a financial institution.

“(g) Retaliation prohibited

“(1) In general—A Federal financial institutions regulatory agency may not—

“(A) retaliate against a financial institution, including service providers, or any institution-affiliated party, for exercising appellate rights under this section; or

“(B) delay or deny any agency action that would benefit a financial institution or any institution-affiliated party on the basis that an appeal under this section is pending under this section.

“(2) Retaliation—For purposes of this subsection, retaliation includes delaying consideration of, or withholding approval of, any request, notice, or application that otherwise would have been approved, but for the exercise of a financial institution’s rights under this section.

changed “(h) Rulemaking—The Board shall issue rules rules, consistent with subchapter II of chapter 5 of title 5, United States Code (commonly referred to as the “Administrative Procedure Act”), to establish procedures for hearings described under this section, including that—

“(1) a financial institution may appear at the hearing personally or through counsel;

“(2) a financial institution may provide an oral and written presentation at the hearing;

“(3) the Board may ask questions of any person participating in the hearing;

“(4) the hearing shall not be governed by the Federal Rules of Evidence; and

“(5) the Board shall have a verbatim transcript of the hearing prepared.

changed “(i) Safety and soundness exception—The appeal Rule of a material supervisory determination by a financial institution under construction—Nothing in this section shall not affect the authority of a Federal financial institutions regulatory agency during the pendency of such appeal to enforce the material supervisory determination or to take an action based on such material supervisory determination, if the Federal financial institutions regulatory agency determines that such enforcement or action is necessary to ensure the immediate safety and soundness of the financial institution.”may be construed—

added “(1) to affect the right of a Federal financial institutions regulatory agency to take enforcement or other supervisory actions related to a material supervisory determination under review under this section; or

added “(2) to prohibit the review under this section of a material supervisory determination with respect to which there is an ongoing enforcement or other supervisory action.”

“(D) ensure that appropriate safeguards exist for protecting any party from retaliation by any agency for exercising rights under this subsection.”

“(6) Retaliation—For purposes of this subsection, retaliation includes delaying consideration of, or withholding approval of, any request, notice, or application that otherwise would have been approved, but for the exercise of a financial institution’s rights under this section.”

“(iv) any issue specifically listed in an exam report as a matter requiring attention by the institution’s management or board of directors; and

“(v) any suspension or removal of an institution’s status as eligible for expedited processing of applications, requests, notices, or filings on the grounds of a supervisory or compliance concern, regardless of whether that concern has been cited as a basis for a material supervisory determination or matter requiring attention in an examination report, provided that the conduct at issue did not involve violation of any criminal law; and”

“(1) the term Federal financial institutions regulatory agencies—

“(A) means the Office of the Comptroller of the Currency, the Board of Governors of the Federal Reserve System, the Federal Deposit Insurance Corporation, and the National Credit Union Administration; and

“(B) includes the Bureau of Consumer Financial Protection for purposes of sections 1012 through 1015;”

“(11) Hearing—With respect to any notice properly issued and served upon a depository institution or institution-affiliated party under this subsection, such depository institution or institution-affiliated party shall be afforded a hearing before—

“(A) the appropriate Federal banking agency; or

“(B) if such institution or person submits a request within 20 days after the issuance of the notice, the appropriate United States district court, and that court shall have jurisdiction to adjudicate all claims and requested remedies stated in the notice of charges, including those authorized under this subsection.”

“(8) Hearing—With respect to any notice properly issued and served upon an institution-affiliated party under this subsection, such institution-affiliated party shall be afforded a hearing before—

“(A) the appropriate Federal banking agency; or

“(B) if such party submits a request for such hearing and forum within 20 days after the issuance of the notice, the appropriate United States district court, and that court shall have jurisdiction to adjudicate all claims and requested remedies stated in the notice, including those authorized under this subsection.”

“(4) Any hearing provided for in subsection (b)(11)(B), (e)(8)(B), or (i)(2)(H)(ii) shall be subject to the jurisdiction, powers, and equitable authority of the district court and be governed by the Federal Rules of Civil Procedure and the Federal Rules of Evidence.

“(5) Any final decision of a United States district court made pursuant to a respondent’s election under subsection (b)(11)(B), (e)(8)(B), or (i)(2)(H)(ii) shall be reviewable in the appropriate court of appeals in the same manner and to the same extent as any other civil action to which the United States is a party.”

“(ii) Finality of assessment—If, with respect to any assessment under clause (i), a hearing is not requested or an election is not made and timely noticed pursuant to subparagraph (H) within the period of time allowed under such subparagraph, the assessment shall constitute a final and unappealable order.”

“(H) Hearing—The insured depository institution or institution-affiliated party against whom any penalty is assessed under this paragraph shall be afforded a hearing before—

“(i) an agency, if such institution or person submits a request for such hearing within 20 days after the issuance of the notice of assessment; or

“(ii) the appropriate United States district court, if such institution or person submits a request for such hearing and forum within 20 days after the issuance of the notice of assessment.”

“(ii) Appropriateness of penalty not reviewable—In any civil action under clause (i), except a civil action tried in a United States district court pursuant to subsection (b)(11)(B), (e)(8)(B), or (i)(2)(H)(ii), the validity and appropriateness of the penalty shall not be subject to review.”

“(x) Savings clause—Nothing in subsection (b)(11)(B), (e)(8)(B), or (i)(2)(H)(ii) shall be construed to—

“(1) limit the authority of a Federal banking agency to initiate an administrative enforcement action; or

“(2) impair the validity of any consent order.”

added “(5) Hearing—With respect to any notice properly issued and served upon an insured credit union, credit union which has insured accounts, or an institution-affiliated party under this subsection, such insured credit union, credit union which has insured accounts, or institution-affiliated party shall be afforded a hearing before—

added “(A) the Administration; or

added “(B) if such insured credit union, credit union which has insured accounts, or institution-affiliated party submits a request within 20 days after the issuance of the notice, the appropriate United States district court, and that court shall have jurisdiction to adjudicate all claims and requested remedies stated in the notice of charges, including those authorized under this subsection.”

added “(8) Hearing—With respect to any notice properly issued and served upon an institution-affiliated party under this subsection, such institution-affiliated party shall be afforded a hearing before—

added “(A) the Administration; or

added “(B) if such institution-affiliated party submits a request within 20 days after the issuance of the notice, the appropriate United States district court, and that court shall have jurisdiction to adjudicate all claims and requested remedies stated in the notice of charges, including those authorized under this subsection.”

added “(4) Any hearing provided for in subsection (e)(5)(B), (g)(8)(B), (i)(3), or (k)(2)(H)(ii) shall be subject to the jurisdiction, powers, and equitable authority of the district court and be governed by the Federal Rules of Civil Procedure and the Federal Rules of Evidence.

added “(5) Any final decision of a United States district court made pursuant to a respondent’s election under subsection (e)(5)(B), (g)(8)(B), (i)(3), or (k)(2)(H)(ii) shall be reviewable in the appropriate court of appeals in the same manner and to the same extent as any other civil action to which the United States is a party.”

added “(ii) Finality of assessment—If, with respect to any assessment under clause (i), a hearing is not requested or an election is not made and timely noticed pursuant to subparagraph (H) within the period of time allowed under such subparagraph, the assessment shall constitute a final and unappealable order.”

added “(H) Hearing—The insured credit union or institution-affiliated party against whom any penalty is assessed under this paragraph shall be afforded a hearing before—

added “(i) the Administration, if such insured credit union or institution-affiliated party submits a request for such hearing within 20 days after the issuance of the notice of assessment; or

added “(ii) the appropriate United States district court, if such insured credit union or institution-affiliated party submits a request for such hearing and forum within 20 days after the issuance of the notice of assessment.”

added “(ii) Appropriateness of penalty not reviewable—In any civil action under clause (i), except a civil action tried in a United States district court pursuant to subsection (e)(5)(B), (g)(8)(B), or (k)(2)(H)(ii), the validity and appropriateness of the penalty shall not be subject to review.”

added “(x) Savings clause—Nothing in subsection (e)(5)(B), (g)(8)(B), or (k)(2)(H)(ii) shall be construed to—

added “(1) limit the authority of the Administration to initiate an administrative enforcement action; or

added “(2) impair the validity of any consent order.”

“(11) Examination relief for certain well managed and well capitalized insured depository institutions

changed “(A) In general—The general—Notwithstanding paragraphs (1) and (2), the following shall apply to a well managed and well capitalized insured depository institution with $6,000,000,000 or less in consolidated assets:

“(i) Alternating limited-scope examinations—After an insured depository institution receives a full-scope, on-site examination from the appropriate Federal banking agency, the next examination of the insured depository institution by the appropriate Federal banking agency shall be a limited-scope examination, as determined by the appropriate Federal banking agency.

“(ii) Combined examinations—If an insured depository institution is otherwise subject to separate safety and soundness examinations, consumer compliance examinations, and information technology and cybersecurity examinations, the appropriate Federal banking agency shall, upon request of the insured depository institution, combine two or three such examinations, as specified by the insured depository institution, and carry them out at the same time.

“(B) Exception—Subparagraph (A) shall not apply to an insured depository institution if—

“(i) the insured depository institution is currently subject to a formal enforcement proceeding or order by the Corporation or the appropriate Federal banking agency; or

“(ii) a person acquired control of the insured depository institution since the most recent full-scope, on-site examination of the insured depository institution from the appropriate Federal banking agency.

“(C) Rulemaking—Not later than 12 months after the date of enactment of this paragraph, the Federal banking agencies shall issue rules to carry out subparagraph (A), including, with respect to an insured depository institution described under subparagraph (A), to—

“(i) establish procedures for the limited-scope examinations described in subparagraph (A)(i);

“(ii) establish procedures for reviewing insured depository institutions described under subparagraph (A), that—

“(I) experience material changes in financial condition or operational risk profile between scheduled examinations; or

“(II) have failed to comply with Federal or State banking laws and regulations; and

“(iii) balance the goals of streamlining the examination cycle for individual insured depository institutions and reducing unnecessary regulatory burdens while maintaining sufficient oversight to ensure the continued safety and soundness of the insured depository institutions and compliance with all applicable laws and regulations.

changed “(D) Rule of construction—Nothing in this paragraph may be construed to limit the authority of a Federal banking agency to conduct off-site monitoring, targeted reviews, or additional full-scope, on-site examinations of an insured depository institution if the Federal banking agency determines such monitoring, reviews, or examinations are necessary appropriate to ensure safety and soundness or compliance with applicable laws.

“(E) Definitions—In this paragraph:

“(i) Consumer compliance examination—The term consumer compliance examination means an examination to assess compliance with the requirements of Federal consumer financial law (as such term is defined in section 1002 of the Consumer Financial Protection Act of 2010).

“(ii) Well capitalized—The term well capitalized has the meaning given that term in section 38(b).

“(iii) Well managed—With respect to an insured depository institution, the term well managed means that, when the institution was most recently examined by the appropriate Federal banking agency, the institution was found to be well managed, and the institution’s composite condition was found to be satisfactory or outstanding.”

“(h) Examination relief for certain well managed and well capitalized insured credit unions

changed “(1) In general—The general—Notwithstanding any other provision of this section, the following shall apply to a well managed and well capitalized insured credit union with $6,000,000,000 or less in consolidated assets:

“(A) Alternating limited-scope examinations—After an insured credit union receives a full-scope, on-site examination from the National Credit Union Administration, the next examination of the insured credit union by the National Credit Union Administration shall be a limited-scope examination, as determined by the National Credit Union Administration.

“(B) Combined examinations—If an insured credit union is otherwise subject to separate safety and soundness examinations, consumer compliance examinations, and information technology and cybersecurity examinations, the National Credit Union Administration shall, upon request of the insured credit union, combine two or three such examinations, as specified by the insured credit union, and carry them out at the same time.

“(2) Exception—Paragraph (1) shall not apply to an insured credit union if the insured credit union is currently subject to a formal enforcement proceeding or order by the National Credit Union Administration.

“(3) Rulemaking—Not later than 12 months after the date of enactment of this subsection, the National Credit Union Administration shall issue rules to carry out paragraph (1), including, with respect to an insured credit union described under paragraph (1), to—

“(A) establish procedures for the limited-scope examinations described in paragraph (1)(A);

“(B) establish procedures for reviewing insured credit unions that—

“(i) experience material changes in financial condition or operational risk profile between scheduled examinations; or

“(ii) have failed to comply with Federal or State banking laws and regulations; and

“(C) balance the goals of streamlining the examination cycle for individual insured credit unions and reducing unnecessary regulatory burdens while maintaining sufficient oversight to ensure the continued safety and soundness of the insured credit unions and compliance with all applicable laws and regulations.

changed “(4) Rule of construction—Nothing in this subsection may be construed to limit the authority of the National Credit Union Administration to conduct off-site monitoring, targeted reviews, or additional full-scope, on-site examinations of an insured credit union if the National Credit Union Administration determines such monitoring, reviews, or examinations are necessary appropriate to ensure safety and soundness or compliance with applicable laws.

“(5) Definitions—In this paragraph:

“(A) Consumer compliance examination—The term consumer compliance examination means an examination to assess compliance with the requirements of Federal consumer financial law (as such term is defined in section 1002 of the Consumer Financial Protection Act of 2010).

“(B) Well capitalized—The term well capitalized has the meaning given that term in section 216(c).

“(C) Well managed—With respect to an insured credit union, the term well managed means that, when the credit union was most recently examined by the National Credit Union Administration, the credit union was found to be well managed, and the credit union’s composite condition was found to be satisfactory or outstanding.”

“(12) Examination practices—With respect to on-site examination of an insured depository institution with less than $6,000,000,000 in total assets, the appropriate Federal banking agency shall—

“(A) ensure the examination is led by, to the maximum extent practicable, an examiner with significant experience as an examiner;

“(B) make every effort, to the maximum extent practicable, to minimize the number of examiners utilized and the amount of time spent at the institution to carry out the examination;

“(C) make every effort, to the maximum extent practicable, to schedule the examination at a time that is convenient for the institution; and

“(D) to the maximum extent practicable, give the institution advance notice of issues expected to be covered in the examination.

“(13) Report—In its annual report to Congress, each Federal banking agency shall include—

“(A) information on how the agency is complying with paragraphs (11) and (12); and

“(B) aggregate data summarizing the agency’s examination practices with respect to insured depository institutions with less than $6,000,000,000 in total assets, including—

“(i) the average experience of examiners, including the average number of years of examiner experience of those who lead on-site examinations;

“(ii) the average number of examiners utilized; and

“(iii) the average amount of time the agency spends visiting such institutions for on-site examinations.”

“(i) Examination practices—With respect to on-site examination of an insured credit union with less than $6,000,000,000 in total assets, the National Credit Union Administration shall—

“(1) ensure the examination is led by, to the maximum extent practicable, an examiner with significant experience as an examiner;

“(2) make every effort, to the maximum extent practicable, to minimize the number of examiners utilized and the amount of time spent at the credit union to carry out the examination;

“(3) make every effort, to the maximum extent practicable, to schedule the examination at a time that is convenient for the credit union; and

“(4) to the maximum extent practicable, give the credit union advance notice of issues expected to be covered in the examination.

“(j) Report—In its annual report to Congress, the National Credit Union Administration shall include—

“(1) information on how the Administration is complying with subsections (h) and (i); and

“(2) aggregate data summarizing the Administration’s examination practices with respect to insured credit unions with less than $6,000,000,000 in total assets, including—

“(A) the average experience of examiners, including the average number of years of examiner experience of those who lead on-site examinations;

“(B) the average number of examiners utilized; and

“(C) the average amount of time the Administration spends visiting such credit unions for on-site examinations.”

removed Section 10(d) of the Federal Deposit Insurance Act (12 U.S.C. 1820(d)) is amended—

Section 2222 of the Economic Growth and Regulatory Paperwork Reduction Act of 1996 (12 U.S.C. 3311) is amended—

“(1) Solicitation of public comment—In conducting”

“(2) Internal review of cumulative impact—Each Federal financial institutions regulatory agency shall conduct an internal review of the cumulative impact of regulations issued by the Federal financial institutions regulatory agency that—

“(A) assesses the effects of such regulations on consumers’ access to financial products and services;

“(B) assesses the effects of such regulations on the availability of financial products and services to financial and nonfinancial firms;

“(C) assesses the impact of such regulations on credit availability and financial market liquidity in United States financial markets;

changed “(D) assesses assess the balance of benefits and costs effects of such regulations with respect to the safety and soundness of the United States financial system and overall economic activity in the United States;on consumer protection;

changed “(E) assesses the balance of benefits and costs of such regulations with respect to the extent practicable, quantifies safety and soundness of the direct United States financial system and indirect overall economic costs imposed by such regulations; andactivity in the United States;

changed “(F) includes recommendations to streamline or eliminate duplicative, outdated, the extent practicable, quantifies the direct and unnecessarily burdensome regulations.”indirect economic costs imposed by such regulations; and

added “(G) includes recommendations to streamline or eliminate duplicative, outdated, and unnecessarily burdensome regulations.”

“(2) a summary of the findings and determinations of each Federal financial institutions regulatory agency of the internal review conducted by the Federal financial institutions regulatory agency under subsection (b)(2); and”

“(f) Federal financial institutions regulatory agency defined—The term Federal financial institutions regulatory agency has the meaning given that term in section 1003 of the Federal Financial Institutions Examination Council Act of 1978 (12 U.S.C. 3302).”

Section 10 of the Federal Reserve Act (12 U.S.C. 241 et seq.) is amended by inserting after paragraph (10) the following:

“(11) Review of discount window operations

“(A) In general—Not later than 60 days after the date of enactment of this paragraph, the Board of Governors shall commence a review of the discount window lending programs of the Federal reserve banks (the “discount window”), and shall complete such review not later than 240 days after the date of enactment of this paragraph.

“(B) Contents—The review required by subparagraph (A) shall include a consideration of—

“(i) the effectiveness of the discount window in providing liquidity to financial institutions, including in times of financial stress;

“(ii) whether the technology infrastructure, including means of communications, are sufficient to support the timely provision of liquidity, including in times of financial stress;

“(iii) the effectiveness of cybersecurity measures implemented with respect to discount window operations;

“(iv) the effectiveness of communications between Federal reserve banks, financial institutions, the Board of Governors, the Federal Deposit Insurance Corporation, the Comptroller of the Currency, and the Secretary of the Treasury regarding discount window operations;

“(v) the effectiveness of the Board of Governors in providing oversight of the discount window and in ensuring consistent access to the discount window across the Federal Reserve System;

“(vi) how the discount window interacts with other providers of liquidity, including the Federal Home Loan Banks, during both normal operations and times of financial distress;

“(vii) the effectiveness of existing discount window operating hours and whether such hours should be expanded, taking into account the interaction between discount window operating hours and the operating hours of payment systems of the Federal reserve banks, such as the Fedwire Funds Service and FedNow Service;

“(viii) the impact of mobile banking and instant communications technology on depositor behavior and liquidity risk posed to financial institutions, including how the discount window can—

“(I) help financial institutions better respond to rapid liquidity shortfalls; and

“(II) prevent broader financial instability; and

“(ix) the effectiveness of the discount window in light of the stigma associated with its usage, ways to reduce such stigma, and ways to improve access, operational efficiency, transparency, and timeliness of the process for financial institutions seeking advances, including on the pricing and other terms of such advances.

“(C) Remediation plan—After the Board of Governors completes the review required by subparagraph (A), the Board of Governors, in consultation with the Federal reserve banks, shall—

“(i) identify deficiencies with the discount window and areas for enhancing discount window effectiveness; and

“(ii) develop a written plan to remediate the identified deficiencies and implement the identified enhancements, which shall include—

“(I) an identification of actions that will be taken to enhance discount window effectiveness and remediate identified deficiencies;

“(II) timelines and milestones for implementing the plan and measures to demonstrate how the implemented improvements will be maintained on an ongoing basis; and

“(III) measures of managing and controlling any deficiencies and current operations until the plan is implemented in full.

“(D) Report to Congress on review and plan

“(i) In general—Not later than 365 days after the date of enactment of this paragraph, the Board of Governors shall 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—

“(I) the findings of the review required by subparagraph (A); and

“(II) the remediation plan required by subparagraph (C).

“(ii) Consultation—Before submitting the report required by clause (i), the Board of Governors shall—

changed “(I) provide a copy of the proposed report to the Comptroller of the Currency, the Federal Deposit Insurance Corporation, the National Credit Union Administration, and the Secretary of the Treasury; and

changed “(II) provide the Comptroller of the Currency, the Federal Deposit Insurance Corporation, the National Credit Union Administration, and the Secretary of the Treasury with an opportunity to provide feedback on the report.

“(iii) Testimony—The Chairman of the Board of Governors shall, at the semi-annual hearing required under section 2B, testify with respect to the contents of the report required under this subparagraph.

“(E) Annual reports to Congress

“(i) Reports by the Board—The Board of Governors shall submit an annual 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 a review of the effectiveness of discount window operations and a progress report on the actions taken to implement the identified enhancements described in subparagraph (C).

“(ii) Reports by the Inspector General—The Inspector General of the Board of Governors of the Federal Reserve System and the Bureau of Consumer Financial Protection shall submit an annual 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 a report on the progress of the Board of Governors in implementing the remediation plan required by subparagraph (C).

“(F) Confidential report information—Any report required under this paragraph may contain a confidential annex containing information that, if made public, could—

“(i) impact monetary policy, financial stability, or cybersecurity; or

“(ii) significantly endanger the safety and soundness of any financial institution.

“(G) Repeal—This paragraph shall be repealed on the date on which the Board of Governors notifies the Congress and publishes on a public website of the Board of Governors that the remediation plan required under subparagraph (C) has been fully implemented.”

removed “(1) In general—The sum of the following amounts of reciprocal deposits of an agent institution shall not be considered to be funds obtained, directly or indirectly, by or through a deposit broker:

removed “(A) An amount equal to 50 percent of the portion of the total liabilities of the agent institution that is less than or equal to $1,000,000,000.

removed “(B) An amount equal to 40 percent of the portion, if any, of the total liabilities of the agent institution that is greater than $1,000,000,000, but less than or equal to $10,000,000,000.

removed “(C) An amount equal to 30 percent of the portion, if any, of the total liabilities of the agent institution that is greater than $10,000,000,000, but less than or equal to $250,000,000,000.”

“(I) when most recently examined under section 10(d) was assigned a CAMELS rating of 1, 2, or 3 under the Uniform Financial Institutions Rating System (or an equivalent rating under a comparable rating system); and”

“(ii) has not yet been examined under section 10(d) and the deposits of which first became insured under this Act during the current calendar year or during the immediately preceding calendar year;”

“(3) Reservation of authority—If an insured depository institution ceases to be an agent institution because it no longer satisfies any of the criteria in paragraph (2)(A), the Corporation may, on a case-by-case basis and upon application, provide a waiver to permit the institution to continue to consider some or all of the deposits previously subject to the exception under paragraph (1) as continuing to be subject to the exception under paragraph (1), for a specific or indefinite period of time, if the Corporation determines that failure to grant such a waiver would negatively impact the safety and soundness of the insured depository institution.”

changed “(iii) the proposed merger transaction would result in an entity with less than $10,000,000,000 in assets.”assets and would not result in there being only one insured depository institution with a physical presence in any relevant metropolitan statistical area.”

changed “(16) For merger transactions resulting in institutions with less than $10,000,000,000 in assetsassets and that would not result in there being only one insured depository institution with a physical presence in any relevant metropolitan statistical area—Notwithstanding paragraph (5), if a proposed merger transaction would result in an institution with less than $10,000,000,000 in assets and would not result in there being only one insured depository institution with a physical presence in any relevant metropolitan statistical area, then the responsible agency shall not consider whether such merger transaction would—

changed “(A) In general—Notwithstanding paragraph (5), if result in a proposed merger transaction monopoly, or would result be in an institution with less than $10,000,000,000 furtherance of any combination or conspiracy to monopolize or to attempt to monopolize the business of banking in assets, then any part of the responsible agency shall not consider whether such merger transaction would—United States; and

changed “(i) result in a monopoly, or would be “(B) have the effect in furtherance of any combination or conspiracy to monopolize or to attempt to monopolize section of the business country of banking substantially lessening competition, tending to create a monopoly, or in any part of the United States; andother manner restraining trade.”

removed “(ii) have the effect in any section of the country of substantially lessening competition, tending to create a monopoly, or in any other manner restraining trade.

removed “(B) Threshold adjustment

removed “(i) In general—At the end of each year for which the nominal gross domestic product of the United States increases (a “covered year”), the Corporation shall adjust the dollar figures described in subparagraph (A) and paragraph (4)(C)(iii) by a percentage equal to the percentage increase (if any) between—

removed “(I) the nominal gross domestic product of the United States for the year, during the preceding 5 years, with respect to which the nominal gross domestic product of the United States was the highest; and

removed “(II) the nominal gross domestic product of the United States for the covered year.

removed “(ii) Determination of GDP—In this paragraph, the Corporation shall use nominal gross domestic product statistics determined by the Bureau of Economic Analysis.”

changed “(8) For proposed transactions resulting in companies with less than $10,000,000,000 in assetsassets and that would not result in there being only one insured depository institution with a physical presence in any relevant metropolitan statistical area—Notwithstanding paragraph (1), if a proposed acquisition, merger, or consolidation under this section would result in a company with less than $10,000,000,000 in assets and would not result in there being only one insured depository institution with a physical presence in any relevant metropolitan statistical area, then the Board shall not consider whether such acquisition, merger, or consolidation would—

changed “(A) In general—Notwithstanding paragraph (1), if result in a proposed acquisition, merger, monopoly, or consolidation under this section would result be in a company with less than $10,000,000,000 furtherance of any combination or conspiracy to monopolize or to attempt to monopolize the business of banking in assets, then any part of the Board shall not consider whether such acquisition, merger, or consolidation would—United States; and

changed “(i) result in a monopoly, or would be “(B) have the effect in furtherance of any combination or conspiracy to monopolize or to attempt to monopolize section of the business country of banking substantially lessening competition, tending to create a monopoly, or in any part of the United States; andother manner restraining trade.”

removed “(ii) have the effect in any section of the country of substantially lessening competition, tending to create a monopoly, or in any other manner restraining trade.

removed “(B) Threshold adjustment

removed “(i) In general—At the end of each year for which the nominal gross domestic product of the United States increases (a “covered year”), the Board shall adjust the dollar figure described in subparagraph (A) by a percentage equal to the percentage increase (if any) between—

removed “(I) the nominal gross domestic product of the United States for the year, during the preceding 5 years, with respect to which the nominal gross domestic product of the United States was the highest; and

removed “(II) the nominal gross domestic product of the United States for the covered year.

removed “(ii) Determination of GDP—In this paragraph, the Board shall use nominal gross domestic product statistics determined by the Bureau of Economic Analysis.”

changed “(10) For proposed transactions resulting in companies with less than $10,000,000,000 in assetsassets and that would not result in there being only one insured depository institution with a physical presence in any relevant metropolitan statistical area—Notwithstanding subparagraphs (A) and (B) of paragraph (2), if a proposed transaction under this section would result in a company with less than $10,000,000,000 in assets and would not result in there being only one insured depository institution with a physical presence in any relevant metropolitan statistical area, then the Board shall not consider whether the transaction would—

changed “(A) In general—Notwithstanding subparagraphs (A) and (B) of paragraph (2), if a proposed transaction under this section would result in a company with less than $10,000,000,000 monopoly, or would be in assets, then furtherance of any combination or conspiracy to monopolize or to attempt to monopolize the Board shall not consider whether savings and loan business in any part of the transaction would—United States; and

changed “(i) result in a monopoly, or would be “(B) have the effect in furtherance of any combination or conspiracy section of the country of substantially lessening competition, tending to monopolize create a monopoly, or to attempt to monopolize the savings and loan business in any part of the United States; andother manner restraining trade.”

removed “(ii) have the effect in any section of the country of substantially lessening competition, tending to create a monopoly, or in any other manner restraining trade.

removed “(B) Threshold adjustment

removed “(i) In general—At the end of each year for which the nominal gross domestic product of the United States increases (a “covered year”), the Board shall adjust the dollar figure described in subparagraph (A) by a percentage equal to the percentage increase (if any) between—

removed “(I) the nominal gross domestic product of the United States for the year, during the preceding 5 years, with respect to which the nominal gross domestic product of the United States was the highest; and

removed “(II) the nominal gross domestic product of the United States for the covered year.

removed “(ii) Determination of GDP—In this paragraph, the Board shall use nominal gross domestic product statistics determined by the Bureau of Economic Analysis.”

“(A) In general—Upon receiving”

“(B) Complete record on an application

“(i) Notice to applicant—Not later than 30 days after the date on which the Board receives an application for approval under this section, the Board shall transmit to the applicant a letter that either—

“(I) confirms the record on the application is complete; or

“(II) details all additional information that is required for the record on that application to be complete.

changed “(ii) Extension of notice—Notwithstanding clause (i), the Board may, if an application is complex, extend the 30-day period described under clause (i) for an additional 30 period not to exceed 60 days.

“(iii) Receipt of response; deeming of complete record—Upon receipt of a response from an applicant to a notice requesting additional information described under clause (i)(II), the record on the application shall be deemed complete unless the Board—

“(I) determines that the applicant’s response was materially deficient; and

“(II) not later than 30 days after the date on which the Board received the response, provides the applicant a detailed notice describing the deficiencies.

“(iv) Treatment of third-party information—In determining whether the record on an application is complete, the Board may take into account only information provided by the applicant, and may not base the determination of completeness on any information (including reports, views, or recommendations) provided by third parties.

“(C) Deadline for determination

“(i) In general—Notwithstanding subparagraphs (A) and (B), the Board shall grant or deny an application submitted under this section not later than 120 days after the date on which the application was initially submitted to the Board, regardless of whether the record on such initial application was complete.

“(ii) Failure to make a determination—If the Board does not grant or deny an application within the time period described under clause (i), such application shall be deemed to have been granted.

“(iii) Tolling of period—The Board may at any time extend the deadline described under clause (i) at the request of the applicant, but may not extend the deadline more than 30 days past the deadline described under clause (i).”

“(7) Complete record on an application

“(A) Notice to applicant—Not later than 30 days after the date on which the Board receives an application for approval under this subsection, the Board shall transmit to the applicant a letter that either—

“(i) confirms the record on the application is complete; or

“(ii) details all additional information that is required for the record on that application to be complete.

changed “(B) Extension of notice—Notwithstanding subparagraph (A), the Board may, if an application is complex, extend the 30-day period described under subparagraph (A) for an additional 30 a period not to exceed 60 days.

“(C) Receipt of response; deeming of complete record—Upon receipt of a response from an applicant to a notice requesting additional information described under subparagraph (A)(ii), the record on the application shall be deemed complete unless the Board—

“(i) determines that the applicant’s response was materially deficient; and

“(ii) not later than 30 days after the date on which the Board received the response, provides the applicant a detailed notice describing the deficiencies.

“(D) Treatment of third-party information—In determining whether the record on an application is complete, the Board may take into account only information provided by the applicant, and may not base the determination of completeness on any information (including reports, views, or recommendations) provided by third parties.

“(8) Deadline for determination

“(A) In general—Notwithstanding any other provision of this subsection, the Board shall grant or deny an application submitted under this subsection not later than 120 days after the date on which the application was initially submitted to the Board, regardless of whether the record on such initial application was complete.

“(B) Failure to make a determination—If the Board does not grant or deny an application within the time period described under subparagraph (A), such application shall be deemed to have been granted.

“(C) Tolling of period—The Board may at any time extend the deadline described under subparagraph (A) at the request of the applicant, but may not extend the deadline more than 30 days past the deadline described under subparagraph (A).”

“(14) Complete record on an application

“(A) Notice to applicant—Not later than 30 days after the date on which the responsible agency receives a merger application for approval under this subsection, the responsible agency shall transmit to the applicant a letter that either—

“(i) confirms the record on the application is complete; or

“(ii) details all additional information that is required for the record on that application to be complete.

changed “(B) Extension of notice—Notwithstanding subparagraph (A), the responsible agency may, if an application is unusually complex, extend the 30-day period described under subparagraph (A) for an additional 30 a period not to exceed 60 days.

“(C) Receipt of response; deeming of complete record—Upon receipt of a response from an applicant to a notice requesting additional information described under subparagraph (A)(ii), the record on the application shall be deemed complete unless the responsible agency—

“(i) determines that the applicant’s response was materially deficient; and

“(ii) not later than 30 days after the date on which the responsible agency received the response, provides the applicant a detailed notice describing the deficiencies.

“(D) Treatment of third-party information—In determining whether the record on an application is complete, the responsible agency may take into account only information provided by the applicant, and may not base the determination of completeness on any information (including reports, views, or recommendations) provided by third parties.

“(15) Deadline for determination

“(A) In general—Notwithstanding any other provision of this subsection, the responsible agency shall grant or deny a merger application submitted under this subsection not later than 120 days after the date on which the application was initially submitted to the responsible agency, regardless of whether the record on such initial application was complete.

“(B) Failure to make a determination—If the responsible agency does not grant or deny an application within the time period described under subparagraph (A), such application shall be deemed to have been granted.

“(C) Tolling of period—The responsible agency may at any time extend the deadline described under subparagraph (A) at the request of the applicant, but may not extend the deadline more than 30 days past the deadline described under subparagraph (A).”

“(B) Subparagraph (A) shall not apply to an interstate merger transaction if—

“(i) such interstate merger transaction involves 1 or more insured depository institutions in default or in danger of default and the responsible agency determines, based on clear and convincing evidence, that consummation of the proposed interstate merger transaction is necessary to prevent significant economic disruption or significant adverse effects on financial stability, and the Corporation has not received any qualified bid from a company that is not subject to the prohibition in subparagraph (A); or

“(ii) the Corporation provides assistance under section 13 to facilitate such interstate merger transaction and the responsible agency determines, based on clear and convincing evidence, that consummation of the proposed interstate merger transaction is necessary to prevent significant economic disruption or significant adverse effects on financial stability, and the Corporation has not received any qualified bid from a company that is not subject to the prohibition in subparagraph (A).”

“(iii) the term “qualified bid” means an application, proposed application, or bid from a company where—

“(I) if applicable, the company, any affiliate insured depository institution, and any affiliate depository institution holding company are well capitalized and well managed, as of the date of the application, proposed application, or bid; and

“(II) upon consummation of the transaction, the resulting insured depository institution is well capitalized;

“(iv) the term “well capitalized”—

“(I) with respect to an insured depository institution, has the meaning given such term in section 38(b) (12 U.S.C. 1831o(b));

“(II) with respect to a bank holding company, has the meaning given such term in section 2(o)(1)(B) of the Bank Holding Company Act of 1956 (12 U.S.C. 1841(o)(1)(B));

“(III) with respect to a savings and loan holding company, has the meaning given such term in section 238.2 of title 12, Code of Federal Regulations; and

“(IV) with respect to a company that is not an insured depository institution, bank holding company, or savings and loan holding company, means maintaining equity capital that the Corporation determines is commensurate with the capital maintained by an insured depository institution that is well capitalized; and

“(v) the term “well managed” has the meaning given such term in section 2(o)(9) of the Bank Holding Company Act of 1956 (12 U.S.C. 1841(o)(9)).”

“(e) Exception for Banks in Default or in Danger of Default

“(1) General exception—The responsible agency may, without regard to paragraph (1), (3), (4), or (5) of subsection (b) or paragraph (2), (4), or (5) of subsection (a), approve an application under subsection (a)(1) for approval of a merger transaction if—

“(A) the merger transaction involves 1 or more banks in default or in danger of default; or

“(B) the Corporation provides assistance under section 13(c) to facilitate such merger transaction.

“(2) Concentration limit exception—The responsible agency may, without regard to subsection (b)(2), approve an application under subsection (a)(1) for approval of a merger transaction if—

“(A) the merger transaction involves 1 or more banks in default or in danger of default and the responsible agency determines, based on clear and convincing evidence, that consummation of the proposed interstate merger transaction is necessary to prevent significant economic disruption or significant adverse effects on financial stability, and the Corporation has not received any qualified bid from another institution that is not subject to the prohibition in subsection (b)(2); or

“(B) the Corporation provides assistance under section 13(c) to facilitate such merger transaction and the responsible agency determines, based on clear and convincing evidence, that consummation of the proposed interstate merger transaction is necessary to prevent significant economic disruption or significant adverse effects on financial stability, and the Corporation has not received any qualified bid from another institution that is not subject to the prohibition in subsection (b)(2).

“(3) Qualified bid defined—In this subsection, the term “qualified bid” has the meaning given that term in section 18(c)(13)(C).”

“(5) Exception for banks in default or in danger of default

“(A) General exception—The Board may, without regard to subparagraph (B) or (D) of paragraph (1) or paragraph (3), approve an application pursuant to paragraph (1)(A) if—

“(i) the application is for an acquisition of 1 or more banks in default or in danger of default; or

“(ii) the application is for an acquisition with respect to which assistance is provided under section 13(c) of the Federal Deposit Insurance Act.

“(B) Concentration limit exception—The Board may, without regard to paragraph (2), approve an application pursuant to paragraph (1)(A) if—

“(i) the application is for the acquisition of 1 or more banks in default or in danger of default and the Board determines, based on clear and convincing evidence, that consummation of the proposed acquisition is necessary to prevent significant economic disruption or significant adverse effects on financial stability, and the Corporation has not received any qualified bid from another institution that is not subject to the prohibition in paragraph (2); or

“(ii) the application is for an acquisition with respect to which assistance is provided under section 13(c) of the Federal Deposit Insurance Act and the Board determines, based on clear and convincing evidence, that consummation of the proposed acquisition is necessary to prevent significant economic disruption or significant adverse effects on financial stability, and the Corporation has not received any qualified bid from another institution that is not subject to the prohibition in paragraph (2).

“(C) Qualified bid defined—In this paragraph, the term “qualified bid” has the meaning given that term in section 18(c)(13)(C) of the Federal Deposit Insurance Act.”

“(B) Exception—Subparagraph (A) shall not apply to an acquisition if—

“(i) such acquisition involves an insured depository institution in default or in danger of default and the Board determines, based on clear and convincing evidence, that consummation of the proposed acquisition is necessary to prevent significant economic disruption or significant adverse effects on financial stability, and the Corporation has not received any qualified bid (as defined in section 18(c)(13)(C) of the Federal Deposit Insurance Act) from another institution that is not subject to the prohibition in paragraph (2); or

“(ii) the Federal Deposit Insurance Corporation provides assistance under section 13 of the Federal Deposit Insurance Act to facilitate such acquisition and the Board determines, based on clear and convincing evidence, that consummation of the proposed acquisition is necessary to prevent significant economic disruption or significant adverse effects on financial stability, and the Corporation has not received any qualified bid (as defined in section 18(c)(13)(C) of the Federal Deposit Insurance Act) from another institution that is not subject to the prohibition in paragraph (2).”

“(1) In general—With the”

“(2) Limitation—The Board may provide written consent for an acquisition described in paragraph (1)(A) or in paragraph (1)(B) only if the Board determines, based on clear and convincing evidence, that consummation of the proposed acquisition is necessary to prevent significant economic disruption or significant adverse effects on financial stability, and the Corporation has not received any qualified bid (as defined in section 18(c)(13)(C) of the Federal Deposit Insurance Act) from another institution that is not subject to the prohibition in subsection (b).”

changed “(J) Limitation on considering bad faith bids—In making a determination under this paragraph of whether an exercise of authority is the least costly to the Deposit Insurance Fund, the Corporation may not consider any application, proposed application, or bid from a company, if such application, proposed application, or bid that would result in violation of—

changed “(i) section 18(c)(13) or 44(b)(2); 44(b)(2), or

changed “(ii) section 3(d)(2), 4(i)(8), or 14 of the Bank Holding Company Act of 1956.”1956,”

removed Section 4(k)(7)(A) of the Bank Holding Company Act of 1956 (12 U.S.C. 1843(k)(7)(A)) is amended by inserting “Under such regulations, the period of time generally permitted for holding merchant banking investments shall not be less than 15 years. For any merchant banking investment held on the date of enactment of the Merchant Banking Modernization Act, the holding period of time permitted shall not be less than 15 years from the initial date of the investment.” after the period at the end.