Sponsors (4)
The bill gives community banks clearer, tailored oversight and predictable coverage cutoffs with increased transparency, but does so by expanding the population that may receive lighter supervision and adding administrative costs, raising trade-offs between targeted relief and potential systemic or taxpayer risk.
Community banks (institutions under $17B in assets) will have a dedicated Federal Reserve Governor focused on their supervision and policy, improving tailored oversight and regulatory clarity for those banks and the small businesses they serve.
Banks and other stakeholders will have more predictable coverage cutoffs because statutory asset thresholds will be annually indexed for inflation, reducing surprise changes from nominal growth.
Semi‑annual congressional hearings on community-bank supervision will increase transparency and accountability of Federal Reserve oversight for community banks and the public.
Raising the community-bank asset threshold to $17B will reclassify more banks, potentially creating uneven regulatory treatment and gaps between midsize and larger banks that could shift supervisory burdens.
Indexing thresholds to nominal GDP or inflation could gradually expand the number of banks qualifying for lighter 'community bank' treatment, possibly increasing taxpayer exposure if lighter supervision raises systemic risk or leads to interventions.
Adding a dedicated Governor position and requiring semi‑annual testimonies will increase administrative workload and costs for the Federal Reserve and its staff.
Based on analysis of 2 sections of legislative text.
Creates a designated community bank Governor for banks under $17 billion, requires FFIEC consultation, semiannual congressional testimony, and indexes several statutory dollar thresholds to nominal GDP annually.
Introduced December 10, 2025 by Monica De La Cruz · Last progress December 10, 2025
Creates a designated community bank Governor on the Federal Reserve Board for banks with less than $17,000,000,000 in assets, requires that Governor be consulted by the Federal Financial Institutions Examination Council (FFIEC), and requires that Governor to testify twice yearly before the House and Senate banking committees about supervision of such banks. Also requires several existing dollar-based size thresholds in federal banking law to be adjusted annually when nominal U.S. GDP rises, using Bureau of Economic Analysis nominal GDP data and a specified percent-change formula.