Merchant Banking Modernization Act

This bill would change the Bank Holding Company Act so that bank holding companies can generally keep their merchant banking investments for up to 15 years. Today, these investments often face tighter time limits. The change aims to let banks hold and grow investments in businesses for a longer period before they must sell them .

• Who is affected: bank holding companies and the businesses they invest in through merchant banking.
• What changes: a general permission to hold these investments up to 15 years, giving more time for long-term growth and exits.
• Why it matters: longer timelines can reduce pressure to sell too soon and may support steadier business growth and jobs in local communities .