Sponsors
The bill strengthens oversight of large standalone banks to reduce systemic risk and protect taxpayers, at the cost of higher compliance burdens and potential competitiveness/lending impacts for some banks and their customers.
Financial institutions that operate as large standalone banks will be subject to the same prudential standards as similarly sized bank holding companies, reducing systemic risk from large standalone banks.
Consumers and taxpayers will face a lower risk of bank failures and taxpayer-funded bailouts because large standalone banks will be subject to stricter oversight and capital standards.
Banks that currently operate without a holding company may face higher compliance costs and capital requirements, which could raise costs for customers or constrain lending.
Smaller standalone banks near the asset threshold could incur substantial regulatory burden if subject to enhanced supervision, reducing their competitiveness versus nonbank competitors.
Based on analysis of 2 sections of legislative text.
Extends the enhanced supervision and prudential standards that apply to large bank holding companies to similarly sized banks without a holding company.
Applies the same enhanced supervision and prudential rules now used for large bank holding companies to banks that do not have a bank holding company but have the same total consolidated assets. It amends existing law so these large, standalone banks are subject to the same safety, capital, liquidity, and supervisory requirements as similarly sized holding-company banks.
Introduced March 9, 2026 by Maxine Waters · Last progress March 9, 2026