Financial Institution Regulatory Tailoring Enhancement Act

This bill would raise the size cutoff for when banks and lenders face tougher federal rules. Many rules that now start at around $10 billion in assets would instead start at $50 billion. In practice, more mid‑sized banks would be treated like small community banks for supervision, trading limits, mortgage lending rules, and capital standards.

Key points

• Who is affected: Banks and credit unions under $50 billion in assets, and the agencies that oversee them; lenders that make home loans inside banks.
• What changes: The cutoff for direct supervision by the Consumer Financial Protection Bureau would move to $50 billion; fewer banks would be covered by parts of the Volcker Rule’s trading limits; more lenders would qualify for small‑creditor “qualified mortgage” flexibility; and more banks could use a simpler capital test instead of more complex rules.
• Why it matters: Mid‑sized institutions would face fewer strict rules, while the largest banks would still be covered by them at $50 billion and above.