Sponsors (3)
The bill mandates a coordinated study to identify and recommend removing barriers to certain banking resolutions and bidder processes—potentially reducing FDIC costs and expanding competition—but it raises administrative costs and could increase safety risks or regulatory complexity depending on the changes adopted.
Taxpayers and depositors could face lower FDIC losses and stronger protection for the Deposit Insurance Fund if the agencies identify reforms (e.g., shelf charters or expanded bidder pools) that make resolutions cheaper or more effective.
Consumers, small businesses, and rural communities may get greater access to and diversity of financial products if the study shows that removing barriers expands competition and bidder diversity.
Congress, regulators, and banks will receive a coordinated, evidence-based assessment of risks from private equity ownership and of statutory/regulatory barriers, improving policy decisions and regulatory clarity.
Taxpayers will bear the compliance and administrative costs of preparing the required joint study and report (work for the OCC, FDIC, and Fed).
Depositors and taxpayers could face increased safety-and-soundness risks if the report leads to loosening charter or bidder rules that encourage riskier entry or more private-equity ownership of banks.
Community banks and smaller bidders (including local buyers) could face greater market complexity and legal uncertainty if the study prompts regulatory or statutory changes that favor larger or different types of entrants.
Based on analysis of 2 sections of legislative text.
Mandates a joint OCC–FDIC–Fed study of shelf charters and the FDIC modified bidder process, with findings and recommended legal/regulatory changes due to Congress within one year.
Requires the OCC, FDIC, and Federal Reserve to jointly study how “shelf charters,” the FDIC’s modified bidder qualification process, and related statutory authorities have been used since 2008 and whether they were considered or used in any 2023 FDIC receivership. The agencies must assess effects on financial stability, competition among bidders, consumer product availability, and private equity ownership risks/benefits, identify legal or regulatory barriers, and submit findings and recommendations to congressional banking committees within one year of enactment. The study must cover specified historical approvals and processes, examine impacts on the Deposit Insurance Fund and need for Treasury emergency determinations, and use defined meanings for “shelf charter” and “modified bidder qualification process.”
Official title: To require the Comptroller of the Currency and the Federal Deposit Insurance Corporation to carry out a study on shelf charters and modified bidder qualification processes, and for other purposes.
Introduced December 10, 2025 by Bill Huizenga · Last progress December 10, 2025