Sponsor
Maxine Waters
Representative · D-CA
The bill strengthens prudential oversight of large standalone banks to reduce systemic risk and protect consumers and taxpayers, at the cost of higher compliance burdens and competitive pressures on some banks that could raise costs or constrain lending.
Large standalone banks (those without a bank holding company) will be subject to the same prudential standards as similarly sized bank holding companies, reducing systemic risk from large standalone banks.
Consumers and taxpayers face lower risk of bank failures and taxpayer-funded bailouts because stricter oversight of large standalone banks should reduce the likelihood of distress and costly rescues.
Banks that currently operate without a holding company will face higher compliance costs and capital requirements, which could increase costs for customers or constrain lending.
Smaller standalone banks near the asset threshold risk increased regulatory burden and reduced competitiveness versus nonbank competitors due to enhanced supervision.
Based on analysis of 2 sections of legislative text.
Makes Section 165 enhanced prudential supervision apply to banks without bank holding companies based on total consolidated assets.
Representative · D-CA
Changes federal bank supervision so that large banks that operate without a bank holding company are subject to the same enhanced prudential standards and heightened supervision that apply to similarly sized bank holding companies. It does this by adding a provision to federal law making the Section 165 enhanced supervision rules apply to banks that lack a bank holding company based on total consolidated assets. The bill is short and narrowly focused: it creates parity in supervisory coverage between large standalone banks and large banking organizations organized with holding companies. It does not create new funding, deadlines, or other programmatic changes beyond expanding the scope of existing prudential rules.
Official title: To amend the Financial Stability Act of 2010 to apply the enhanced supervision and prudential standards applicable under such Act with respect to bank holding companies to large banks that do not have a bank holding company, and for other purposes.
Introduced March 9, 2026 by Maxine Waters · Last progress March 9, 2026