Sponsors (3)
The bill reduces compliance burdens for smaller banks to free up lending and local services, at the cost of narrowing supervision and consumer protections and increasing systemic and taxpayer risk.
Community banks and credit unions with under $50 billion in assets will face fewer federal regulatory burdens, lowering their compliance costs.
Affected smaller banks could redirect savings from reduced compliance into more lending and local services, potentially increasing credit availability for local borrowers and small businesses.
A narrower regulatory perimeter increases systemic risk by reducing the number of firms subject to enhanced capital, leverage, and prudential requirements, which could raise the likelihood of a crisis and taxpayer exposure to bailouts.
Consumers could face higher risk because fewer banks would be subject to CFPB supervision and Volcker Rule coverage, reducing oversight of risky activities by institutions formerly covered.
Borrowers and mortgage consumers at institutions that fall below the new threshold may lose protections tied to the qualified mortgage/ability-to-repay standards, increasing their vulnerability to unsafe lending practices.
Based on analysis of 2 sections of legislative text.
Raises multiple statutory asset‑size thresholds in federal banking and consumer‑finance laws to $50 billion, narrowing which institutions are covered by those rules.
Introduced May 7, 2025 by Garland H. Barr · Last progress May 7, 2025
Raises several federal asset‑size thresholds used in banking and consumer‑finance laws to $50 billion. That change narrows which banks, savings associations, and credit unions fall under certain regulatory rules—affecting CFPB supervision, the Volcker Rule reference, qualified mortgage/ability‑to‑repay treatment, and a capital requirements cross‑reference. The change is a set of technical statutory edits that alter who is covered by existing rules; it does not create new programs, funding, or deadlines in the text provided.