Bank Failure Prevention Act of 2025

Summary

Changes the Federal Reserve’s timing and rules for when applications from bank holding companies and savings associations are treated as a "complete record." The Fed must tell applicants within 30 days whether the filing is complete (with one 30-day extension for complex cases), and must decide applications within 90 days of initial submission (with a possible applicant-requested 30-day extension). If the Fed misses the 90-day decision deadline, the application is deemed granted. The Fed may only rely on information submitted by the applicant when deciding completeness and must promptly notify applicants if their responses are materially deficient.

• Creates a 30-day deadline for the Fed to notify applicants whether an application record is complete, with one 30-day extension allowed for complex cases.
• An applicant’s response to a deficiency notice is treated as making the record complete unless the Fed finds the response materially deficient and notifies the applicant within 30 days.
• Limits the Fed to considering only information submitted by the applicant when determining whether a record is complete; third-party information cannot be used to deny completeness.
• Requires the Fed to issue a final decision on applications within 90 days of initial submission.
• If the Fed does not decide within 90 days, the application is deemed granted; the 90-day deadline can only be extended up to 30 days at the applicant’s request.
• Applies these procedural requirements to both bank holding company filings and comparable savings-association filings.
• Does not change funding or create new spending programs—this is an administrative and procedural change.
• Raises the pace and predictability of application processing, increasing applicant leverage but reducing regulator time for review before approval.