,,ib ,union ,calendar ,no4 #ece #aaith ,,congress #b;d ,session ,h4 ,r4 #fiee ,report ,no4 #aai-fag ,,in ,,the ,,house ,,of ,,representatives ,january #g1 #bjbf,mr4 ,hill of ,arkansas 7for himself1 ,mr4 ,barr1 ,mr4 ,huizenga1 ,mr4 ,lucas1 ,mr4 ,sessions1 ,mrs4 ,wagner1 ,mr4 ,williams of ,texas1 ,mr4 ,emmer1 ,mr4 ,loudermilk1 ,mr4 ,davidson1 ,mr4 ,rose1 ,mr4 ,steil1 ,mr4 ,timmons1 ,mr4 ,stutzman1 ,mr4 ,norman1 ,mr4 ,meuser1 ,mrs4 ,kim1 ,mr4 ,donalds1 ,mr4 ,garbarino1 ,mr4 ,fitzgerald1 ,mr4 ,flood1 ,mr4 ,lawler1 ,ms4 ,de ,la ,cruz1 ,mr4 ,ogles1 ,mr4 ,nunn of ,iowa1 ,mrs4 ,mc,clain1 ,ms4 ,salazar1 ,mr4 ,downing1 ,mr4 ,haridopolos1 and ,mr4 ,moore of ,north ,carolina7 introduced the following bill2 which was referred to the ,committee on ,financial ,services ,april #bj1 #bjbf;,additional sponsors3 ,mr4 ,kennedy of ,utah1 ,mr4 ,knott1 ,mr4 ,calvert1 and ,mrs4 ,fedorchak ,april #bj1 #bjbf,reported with an amendment1 committed to the ,committee of the ,whole ,house on the ,state of the ,union1 and ordered to be printed,strike out all after the enacting clause and insert the part printed in italic,for text of introduced bill1 see copy of bill as introduced on ,january #g1 #bjbf ,a ,,bill ,to make improvements to the ,federal banking laws1 and for other purposes4 #a4 ,short title2 table of contents 7a7 ,short title ,this ,act may be cited as the ,main ,street ,capital ,access ,act or the ,main ,street ,act4 7b7 ,table of contents ,the table of contents for this ,act is as follows3 ,sec4 #a4 ,short title2 table of contents4,title ,i--,new ,bank ,formation and ,local ,community ,access,sec4 #aja4 ,promoting ,new ,bank ,formation4,sec4 #ajb4 ,new ,bank ,application ,numbers ,knowledge4,sec4 #ajc4 ,rural ,depositories ,revitalization ,studies4,sec4 #ajd4 ,community ,investment and ,prosperity4,sec4 #aje4 ,,cdfi ,fund ,transparency4,sec4 #ajf4 ,,cdfi ,bond ,guarantee ,improvement4,title ,,ii--,tailoring ,bank ,regulation,sec4 #bja4 ,taking ,account of ,institutions with ,low ,operation ,risk4,sec4 #bjb4 ,small ,bank ,holding ,company ,relief4,sec4 #bjc4 ,community ,bank ,leverage ,improvement and ,flexibility for ,transparency4,sec4 #bjd4 ,tailoring and ,indexing ,enhanced ,regulations4,sec4 #bje4 ,community ,bank ,regulatory ,tailoring4,sec4 #bjf4 ,credit ,union ,board ,modernization4,title ,,iii--,fair and ,transparent ,bank ,supervision,sec4 #cja4 ,halting ,uncertain ,methods and ,practices in ,supervision4,sec4 #cjb4 ,fair ,audits and ,inspections for ,regulators' ,exams4,sec4 #cjc4 ,supervisory ,modifications for ,appropriate ,risk-based ,testing4,sec4 #cjd4 ,tailored ,regulatory ,updates for ,supervisory ,testing4,sec4 #cje4 ,financial ,integrity and ,regulation ,management4,title ,,iv--,regulatory ,accountability and ,transparency,sec4 #dja4 ,,fdic ,board ,accountability4,sec4 #djb4 ,stop ,agency ,fiat ,enforcement of ,guidance4,sec4 #djc4 ,regulatory ,efficiency1 ,verification1 ,itemization1 and ,enhanced ,workflow4,sec4 #djd4 ,american ,financial ,institution ,regulatory ,sovereignty and ,transparency4,title ,v--,strengthening ,local ,bank ,funding,sec4 #eja4 ,bringing the ,discount ,window into the #bast ,century4,sec4 #ejb4 ,keeping ,deposits ,local4,sec4 #ejc4 ,community ,bank ,deposit ,access4,title ,,vi--,promoting ,bank ,competition and ,merger ,clarity,sec4 #fja4 ,bank ,competition ,modernization4,sec4 #fjb4 ,merger ,agreement ,approvals ,clarity and ,predictability4,sec4 #fjc4 ,merger ,process ,review4,sec4 #fjd4 ,bank ,failure ,prevention4,title ,,vii--,strengthening ,transparency and ,involvement in ,bank ,resolutions,sec4 #gja4 ,least ,cost ,exception4,sec4 #gjb4 ,enhancing ,bank ,resolution ,participation4,sec4 #gjc4 ,failing ,bank ,acquisition ,fairness4,sec4 #gjd4 ,systemic ,risk ,authority ,transparency4,title ,,viii--,facilitating ,innovation and ,bank ,partnerships,sec4 #hja4 ,merchant ,banking ,modernization4,sec4 #hjb4 ,bank-,fintech ,partnership ,enhancement4 ,i ,new ,bank ,formation and ,local ,community ,access #aja4 ,promoting ,new ,bank ,formation 7a7 ,phase-,in of capital standards ,notwithstanding any other provision of law1 the ,federal banking agencies shall issue rules that provide for a #c-year phase-in period for a depository institution or depository institution holding company to meet any ,federal capital requirements that would otherwise be applicable to the depository institution or depository institution holding company1 beginning on-- 7#a7 the date on which the depository institution became an insured depository institution2 or 7#b7 in the case of a depository institution holding company1 the date on which the depository institution subsidiary of the depository institution holding company became an insured depository institution4 7b7 ,changes to business plans 7#a7 ,in general ,during the #c-year period beginning on the date on which a depository institution became an insured depository institution1 if1 as a condition of approval1 the appropriate ,federal banking agency imposes a requirement to obtain prior approval before deviating from a business plan1 the insured depository institution or its depository institution holding company may request to deviate materially from a business plan that has been approved by the appropriate ,federal banking agency by submitting a request to such agency pursuant to this section4 7#b7 ,review of changes ,the appropriate ,federal banking agency shall1 not later than the end of the #cj-;day period beginning on the receipt of a request under paragraph 7#a7-- 7,a7 approve1 conditionally approve1 or deny such request2 and 7,b7 notify the applicant of such decision and1 if the agency denies the request-- 7i7 provide the applicant with the reason for such denial2 and 7ii7 suggest changes to the request that1 if adopted1 would allow the agency to approve such request4 7#c7 ,result of failure to act ,if an appropriate ,federal banking agency fails to approve or deny a request within the #cj-;day period required under paragraph 7#b71 such request shall be deemed to be approved4 7c7 ,rural community depository institution leverage ratio 7#a7 ,in general ,during the #c-year period beginning on the date on which a rural depository institution became an insured depository institution1 the ,community ,bank ,leverage ,ratio for the rural community bank shall be the lesser of-- 7,a7 the ,community ,bank ,leverage ,ratio adopted by the ,federal banking agencies pursuant to section #bja7;b77#a7 of the ,economic ,growth1 ,regulatory ,relief1 and ,consumer ,protection ,act 7#ab ,u4,s4,c4 #ecga note72 or 7,b7 #g4e percent4 7#b7 ,phase-,in authority ,the ,federal banking agencies shall issue rules to phase-in the ,community ,bank ,leverage ,ratio described under paragraph 7#a7 with respect to a rural depository institution by setting lower ,community ,bank ,leverage ,ratio percentages during the first #b years of the #c-year period described under paragraph 7#a74 7#c7 ,definitions ,in this subsection3 7,a7 ,community ,bank ,leverage ,ratio ,the term ,community ,bank ,leverage ,ratio has the meaning given that term under section #bja7;a7 of the ,economic ,growth1 ,regulatory ,relief1 and ,consumer ,protection ,act 7#ab ,u4,s4,c4 #ecga note74 7,b7 ,rural area ,the term rural area means-- 7i7 a county that is neither in a metropolitan statistical area nor in a micropolitan statistical area that is adjacent to a metropolitan statistical area1 as those terms are defined by the ,office of ,management and ,budget and as they are applied under applicable ,urban ,influence ,codes1 established by the ,department of ,agriculture's ,economic ,research ,service2 or 7ii7 a census block that is not in an urban area1 as defined by the ,bureau of the ,census using the latest decennial census of the ,united ,states4 7,c7 ,rural depository institution ,the term rural depository institution means a depository institution-- 7i7 with total consolidated assets of less than #aj1jjj1jjj1jjj2 and 7ii7 located in a rural area4 7d7 ,agricultural loan authority for ,federal savings associations ,section #e7;c7 of the ,home ,owners' ,loan ,act 7#ab ,u4,s4,c4 #adfd7;c77 is amended-- 7#a7 in paragraph 7#a71 by adding at the end the following3 7,v7 ,agricultural loans ,secured or unsecured loans for agricultural purposes4 2 and 7#b7 in paragraph 7#b77;,a71 by striking business1 or agricultural and inserting or business4 7e7 ,study on de novo insured depository institutions 7#a7 ,study ,the ,federal banking agencies shall1 jointly1 carry out a study on-- 7,a7 the principal causes for the low number of de novo insured depository institutions in the #aj-year period ending on the date of enactment of this ,act2 and 7,b7 ways to promote more de novo insured depository institutions in areas currently underserved by insured depository institutions4 7#b7 ,report to ,congress ,not later than the end of the #a-year period beginning on the date of enactment of this ,act1 the ,federal banking agencies shall1 jointly1 issue a report to the ,committee on ,financial ,services of the ,house of ,representatives and the ,committee on ,banking1 ,housing1 and ,urban ,affairs of the ,senate containing all findings and determinations made in carrying out the study required under paragraph 7#a74 7f7 ,definitions ,in this section1 the terms appropriate ,federal banking agency1 depository institution1 depository institution holding company1 ,federal banking agency1 and insured depository institution have the meaning given those terms1 respectively1 under section #c of the ,federal ,deposit ,insurance ,act 7#ab ,u4,s4,c4 #ahac74 #ajb4 ,new ,bank ,application ,numbers ,knowledge 7a7 ,annual report on national bank and ,federal savings association charter applications ,the ,comptroller of the ,currency shall publish an annual report that includes the following1 or with respect to any equivalent procedure used by the ,office of the ,comptroller of the ,currency includes the following3 7#a7 ,the number of applications for a national bank or ,federal savings association charter received1 approved on a preliminary basis1 approved on a final basis1 denied1 withdrawn1 inactive1 expired1 mooted1 returned1 returned pending resubmission1 or otherwise dispositioned4 7#b7 ,the mean and median times for preliminary approval of such applications4 7#c7 ,the mean and median times for final approval of such applications4 7#d7 ,to the extent practicable1 common reasons leading to the denial1 withdrawal1 or expiration of preliminary approval of such applications4 7b7 ,annual report on ,federal credit union charter applications ,the ,national ,credit ,union ,administration shall publish an annual report that includes the following1 or with respect to any equivalent procedure used by the ,board includes the following3 7#a7 ,the number of ,federal credit union charter applications received1 approved on a final basis1 denied1 withdrawn1 inactive1 or returned pending resubmission4 7#b7 ,the mean and median times for final approval of such applications4 7#c7 ,to the extent practicable1 common reasons leading to application denial1 withdrawal1 inactivity1 or to applications being returned for resubmission4 7c7 ,annual report on depository institution holding company applications 7#a7 ,in general ,the ,board of ,governors of the ,federal ,reserve ,system shall publish an annual report that includes the following1 or with respect to any equivalent procedure used by the ,board of ,governors includes the following3 7,a7 ,the number of applications to become a top-tier depository institution holding company received1 approved on a preliminary basis1 approved on a final basis1 denied1 withdrawn1 inactive1 expired1 mooted1 returned1 returned pending resubmission1 or otherwise dispositioned4 7,b7 ,the mean and median times to approve such applications4 7,c7 ,to the extent practicable1 common reasons leading to denial or withdrawal of such applications4 7#b7 ,top-tier depository institution holding company defined ,in this subsection1 the term top-tier depository institution holding company means a depository institution holding company 7as defined in section #c of the ,federal ,deposit ,insurance ,act 7#ab ,u4,s4,c4 #ahac77 that is not controlled by any other depository institution holding company4 7d7 ,annual report on ,federal deposit insurance applications ,the ,federal ,deposit ,insurance ,corporation shall publish an annual report that includes the following1 or with respect to any equivalent procedure used by the ,corporation includes the following3 7#a7 ,the number of applications for deposit insurance received1 approved on a preliminary basis1 approved on a final basis1 denied1 withdrawn1 inactive1 expired1 mooted1 returned1 returned pending resubmission1 or otherwise dispositioned4 7#b7 ,the mean and median times to approve such applications4 7#c7 ,to the extent practicable1 common reasons leading to denial or withdrawal of such applications4 7e7 ,annual report on ,state depository institution and ,state credit union charter applications 7#a7 ,in general ,the ,board of ,governors of the ,federal ,reserve ,system1 the ,federal ,deposit ,insurance ,corporation1 and the ,national ,credit ,union ,administration ,board shall1 jointly1 and in consultation with ,state banking regulators and ,state credit union regulators1 publish an annual report that includes the following1 or with respect to any equivalent procedure used by such agencies includes the following3 7,a7 ,the number of applications for a ,state depository institution charter received1 approved on a preliminary basis1 approved on a final basis1 denied1 withdrawn1 inactive1 expired1 mooted1 returned1 returned pending resubmission1 or otherwise dispositioned4 7,b7 ,the mean and median times to approve such applications1 with times for each ,state shown separately4 7,c7 ,to the extent practicable1 common reasons leading to denial or withdrawal of such applications4 7#b7 ,definitions ,in this subsection3 7,a7 ,state ,the term ,state means any ,state of the ,united ,states1 the ,district of ,columbia1 and any territory of the ,united ,states4 7,b7 ,state depository institution ,the term ,state depository institution means-- 7i7 a ,state depository institution1 as defined in section #c of the ,federal ,deposit ,insurance ,act 7#ab ,u4,s4,c4 #ahac72 and 7ii7 a ,state credit union1 as defined in section #aja of the ,federal ,credit ,union ,act 7#ab ,u4,s4,c4 #ageb74 #ajc4 ,rural ,depositories ,revitalization ,studies 7a7 ,study on rural depository institutions ,the ,federal banking agencies shall1 jointly1 carry out a study-- 7#a7 to identify methods to improve the growth1 capital adequacy1 and profitability of depository institutions in the ,united ,states that primarily serve rural areas2 and 7#b7 to identify ,federal statutes 7other than appropriations ,acts7 or regulations of the ,federal banking agencies that limit-- 7,a7 the methods identified under paragraph 7#a72 or 7,b7 the establishment of de novo depository institutions in rural areas4 7b7 ,report on rural depository institutions ,not later than #a year after the date of enactment of this ,act1 the ,federal banking agencies shall1 jointly1 issue a report to the ,committee on ,financial ,services of the ,house of ,representatives and the ,committee on ,banking1 ,housing1 and ,urban ,affairs of the ,senate containing all findings and determinations made in carrying out the study required under subsection 7a74 7c7 ,study on rural credit unions ,the ,national ,credit ,union ,administration shall carry out a study-- 7#a7 to identify methods to improve the growth1 capital adequacy1 and profitability of insured credit unions in the ,united ,states that primarily serve rural areas2 and 7#b7 to identify ,federal statutes 7other than appropriations ,acts7 or regulations of the ,national ,credit ,union ,administration that limit-- 7,a7 the methods identified under paragraph 7#a72 or 7,b7 the establishment of de novo insured credit unions in rural areas4 7d7 ,report on rural credit unions ,not later than #a year after the date of enactment of this ,act1 the ,national ,credit ,union ,administration shall issue a report to the ,committee on ,financial ,services of the ,house of ,representatives and the ,committee on ,banking1 ,housing1 and ,urban ,affairs of the ,senate containing all findings and determinations made in carrying out the study required under subsection 7c74 7e7 ,definitions ,in this section3 7#a7 ,depository institution ,the term depository institution has the meaning given that term in section #c of the ,federal ,deposit ,insurance ,act 7#ab ,u4,s4,c4 #ahac74 7#b7 ,federal banking agencies ,the term ,federal banking agencies means the ,board of ,governors of the ,federal ,reserve ,system1 the ,comptroller of the ,currency1 and the ,federal ,deposit ,insurance ,corporation4 7#c7 ,insured credit union ,the term insured credit union has the meaning given that term in section #aja of the ,federal ,credit ,union ,act 7#ab ,u4,s4,c4 #ageb74 7#d7 ,rural area ,the term rural area means-- 7,a7 a county that is neither in a metropolitan statistical area nor in a micropolitan statistical area that is adjacent to a metropolitan statistical area1 as those terms are defined by the ,office of ,management and ,budget and as they are applied under applicable ,urban ,influence ,codes1 established by the ,department of ,agriculture's ,economic ,research ,service2 or 7,b7 a census block that is not in an urban area1 as defined by the ,bureau of the ,census using the latest decennial census of the ,united ,states4 #ajd4 ,community ,investment and ,prosperity 7a7 ,revised ,statutes of the ,united ,states ,the paragraph designated as the ,eleventh of section #eacf of the ,revised ,statutes of the ,united ,states 7#ab ,u4,s4,c4 #bd7 is amended1 in the fifth sentence1 by striking #ae each place that term appears and inserting #bj4 7b7 ,federal ,reserve ,act ,the #bcrd paragraph of section #i of the ,federal ,reserve ,act 7#ab ,u4,s4,c4 #cch;a7 is amended1 in the fifth sentence1 by striking #ae each place that term appears and inserting #bj4 #aje4 ,,cdfi ,fund ,transparency ,section #ajd7;b7 of the ,riegle ,community ,development and ,regulatory ,improvement ,act of #aiid 7#ab ,u4,s4,c4 #dgjc7;b77 is amended by adding to the end the following3 7#e7 ,annual testimony ,the ,secretary of the ,treasury 7or a designee of the ,secretary7 shall1 at the discretion of the ,chair of the ,committee on ,financial ,services of the ,house of ,representatives and the ,chair of the ,committee on ,banking1 ,housing1 and ,urban ,affairs of the ,senate1 annually testify before such committees 7or a subcommittee of such committees7 regarding the operations of the ,fund during the previous year4 4 #ajf4 ,,cdfi ,bond ,guarantee ,improvement 7a7 ,sense of ,congress ,it is the sense of ,congress that the authority to guarantee bonds under section #aad;,a of the ,community ,development ,banking and ,financial ,institutions ,act of #aiid 7#ab ,u4,s4,c4 #dgac;a7 7commonly referred to as the ,,cdfi ,bond ,guarantee ,program7 provides community development financial institutions with a sustainable source of long-term capital and furthers the mission of the ,community ,development ,financial ,institutions ,fund 7established under section #ajd7;a7 of such ,act 7#ab ,u4,s4,c4 #dgjc7;a777 to increase economic opportunity and promote community development investments for underserved populations and distressed communities in the ,united ,states4 7b7 ,guarantees for bonds and notes issued for community or economic development purposes 7#a7 ,in general ,section #aad;,a of the ,community ,development ,banking and ,financial ,institutions ,act of #aiid 7#ab ,u4,s4,c4 #dgac;a7 is amended-- 7,a7 in subsection 7c77#b7-- 7i7 by striking 1 multiplied by an amount equal to the outstanding principal balance of issued notes or bonds2 and 7ii7 by inserting outstanding before principal amount2 7,b7 by amending subsection 7e77#b7 to read as follows3 7#b7 ,limitation on guarantee amount ,the ,secretary may not guarantee any amount under the ,program equal to an amount less than #be1jjj1jjj1 but the total of all such guarantees in any fiscal year may not exceed #a1jjj1jjj1jjj4 2 7,c7 in subsection 7g77#a71 by striking #aj basis points and inserting not fewer than #aj basis points and not more than #ae basis points2 and 7,d7 in subsection 7k71 by striking ,september #cj1 #bjad and inserting ,december #ca1 #bjbh4 7#b7 ,clerical amendment ,the table of contents in section #a7;b7 of the ,riegle ,community ,development and ,regulatory ,improvement ,act of #aiid 7,public ,law #ajc-cbe2 #ajh ,stat4 #bafj7 is amended by inserting after the item relating to section #aad the following3 ,sec4 #aad;,a4 ,guarantees for bonds and notes issued for community or economic development purposes4 4 7c7 ,report on the ,,cdfi ,bond ,guarantee ,program ,not later than #c years after the date of enactment of this ,act1 the ,secretary of the ,treasury shall issue a report to the ,committee on ,banking1 ,housing1 and ,urban ,affairs of the ,senate and the ,committee on ,financial ,services of the ,house of ,representatives on the effectiveness of the ,,cdfi bond guarantee program established under section #aad;,a of the ,community ,development ,banking and ,financial ,institutions ,act of #aiid 7#ab ,u4,s4,c4 #dgac;a74 ,,ii ,tailoring ,bank ,regulation #bja4 ,taking ,account of ,institutions with ,low ,operation ,risk 7a7 ,tailoring regulation to business model and risk 7#a7 ,definitions ,in this subsection-- 7,a7 the term ,federal financial institutions regulatory agency means the ,office of the ,comptroller of the ,currency1 the ,board of ,governors of the ,federal ,reserve ,system1 the ,federal ,deposit ,insurance ,corporation1 the ,national ,credit ,union ,administration1 and the ,bureau of ,consumer ,financial ,protection2 and 7,b7 the term regulatory action-- 7i7 means any proposed1 interim1 or final rule or regulation2 and 7ii7 does not include any action taken by a ,federal financial institutions regulatory agency that is solely applicable to an individual institution1 including an enforcement action1 adjudication1 or order4 7#b7 ,consideration and tailoring ,for any regulatory action occurring after the date of enactment of this ,act1 each ,federal financial institutions regulatory agency shall-- 7,a7 take into consideration the risk profile and business models of each type of institution or class of institutions subject to the regulatory action2 and 7,b7 tailor the regulatory action applicable to an institution1 or type of institution1 in a manner that limits the regulatory impact1 including cost1 human resource allocation1 and other burdens1 on the institution or type of institution as is appropriate for the risk profile and business model involved4 7#c7 ,factors to consider ,in carrying out the requirements of paragraph 7#b7 with respect to a regulatory action1 each ,federal financial institutions regulatory agency shall consider-- 7,a7 the aggregate effect of all applicable regulatory actions on the ability of institutions to flexibly serve customers of the institutions and local markets on and after the date of enactment of this ,act2 7,b7 the potential that efforts to implement the regulatory action and third-party service provider actions may work to undercut efforts to tailor the regulatory action1 as described in paragraph 7#b77;,b72 and 7,c7 the statutory provision authorizing the regulatory action1 the congressional intent with respect to the statutory provision1 and the underlying policy objectives of the regulatory action4 7#d7 ,notice of proposed and final rulemaking ,each ,federal financial institutions regulatory agency shall disclose and document in every notice of proposed rulemaking and in any final rulemaking for a regulatory action how the agency has applied paragraphs 7#b7 and 7#c74 7#e7 ,reports to ,congress 7,a7 ,agency reporting ,not later than #a year after the date of enactment of this ,act and annually thereafter1 each ,federal financial institutions regulatory agency shall submit to the ,committee on ,banking1 ,housing1 and ,urban ,affairs of the ,senate and the ,committee on ,financial ,services of the ,house of ,representatives a report on the specific actions taken to tailor the regulatory actions of the ,federal financial institutions regulatory agency pursuant to the requirements of this section4 7,b7 ,,gao reporting ,not later than #ah months after the date of enactment of this ,act1 the ,comptroller ,general of the ,united ,states shall submit to the ,committee on ,banking1 ,housing1 and ,urban ,affairs of the ,senate and the ,committee on ,financial ,services of the ,house of ,representatives a report evaluating the effects of this section on the factors described in paragraph 7#c74 7b7 ,short-form call reports for all banks eligible for the community bank leverage ratio ,the appropriate ,federal banking agencies1 as defined in section #c of the ,federal ,deposit ,insurance ,act 7#ab ,u4,s4,c4 #ahac71 shall promulgate regulations establishing a reduced reporting requirement for all banks eligible for the ,community ,bank ,leverage ,ratio1 as defined in section #bja7;a7 of the ,economic ,growth1 ,regulatory ,relief1 and ,consumer ,protection ,act 7#ab ,u4,s4,c4 #ecga note71 when making the first and third report of condition of a year as required by section #g7;a7 of the ,federal ,deposit ,insurance ,act 7#ab ,u4,s4,c4 #ahag7;a774 7c7 ,report to ,congress on modernization of supervision ,not later than #ah months after the date of enactment of this ,act1 the appropriate ,federal banking agencies1 as defined in section #c of the ,federal ,deposit ,insurance ,act 7#ab ,u4,s4,c4 #ahac71 in consultation with ,state bank supervisors1 shall submit to the ,committee on ,banking1 ,housing1 and ,urban ,affairs of the ,senate and the ,committee on ,financial ,services of the ,house of ,representatives a report on the modernization of bank supervision1 including the following factors3 7#a7 ,changing bank business models4 7#b7 ,examiner workforce and training4 7#c7 ,the structure of supervisory activities within banking agencies4 7#d7 ,improving bank-supervisor communication and collaboration4 7#e7 ,the use of supervisory technology4 7#f7 ,supervisory factors uniquely applicable to community banks4 7#g7 ,changes in statutes necessary to achieve more effective supervision4 #bjb4 ,small ,bank ,holding ,company ,relief ,not later than #ahj days after the date of the enactment of this ,act1 the ,board of ,governors of the ,federal ,reserve ,system shall revise appendix ,c to part #bbe of title #ab1 ,code of ,federal ,regulations 7commonly known as the ,small ,bank ,holding ,company and ,savings and ,loan ,holding ,company ,policy ,statement71 to raise the consolidated asset threshold under that appendix to #f1jjj1jjj1jjj for any bank holding company or savings and loan holding company4 #bjc4 ,community ,bank ,leverage ,improvement and ,flexibility for ,transparency 7a7 ,community ,bank ,leverage ,ratio 7#a7 ,in general ,section #bja of the ,economic ,growth1 ,regulatory ,relief1 and ,consumer ,protection ,act 7#ab ,u4,s4,c4 #ecga note7 is amended-- 7,a7 in subsection 7a77#c77;,a71 by striking #aj1jjj1jjj1jjj and inserting #ae1jjj1jjj1jjj2 and 7,b7 in subsection 7b77#a71 by striking not less than #h percent and not more than #aj percent and inserting not less than #f percent and not more than #i percent4 7#b7 ,rulemaking deadline ,not later than the end of the #ahj-;day period beginning on the date of enactment of this ,act1 and after reviewing the report issued pursuant to subsection 7b77#b71 the ,board of ,governors of the ,federal ,reserve ,system1 the ,comptroller of the ,currency1 and the ,federal ,deposit ,insurance ,corporation shall propose and1 not later than #a year after the date of the enactment of this ,act1 such agencies shall finalize rules to carry out the amendments made by paragraph 7#a7 and the recommended modifications contained in such report4 7b7 ,review of the ,community ,bank ,leverage ,ratio 7#a7 ,in general ,the ,board of ,governors of the ,federal ,reserve ,system1 the ,comptroller of the ,currency1 and the ,federal ,deposit ,insurance ,corporation shall commence a review of the ,community ,bank ,leverage ,ratio 7,,cblr7 developed under section #bja of the ,economic ,growth1 ,regulatory ,relief1 and ,consumer ,protection ,act 7#ab ,u4,s4,c4 #ecga note71 and rules issued thereunder1 which shall include a consideration of how to modify and calibrate the ,,cblr to encourage more qualifying community banks to opt-in to the ,,cblr framework1 with an additional focus on-- 7,a7 those qualifying community banks with fewer assets2 and 7,b7 providing regulatory compliance burden relief so that the ,,cblr is simple to apply4 7#b7 ,report ,not later than the end of the #aej-;day period beginning on the date of enactment of this ,act1 the ,board of ,governors of the ,federal ,reserve ,system1 the ,comptroller of the ,currency1 and the ,federal ,deposit ,insurance ,corporation shall issue a report to the ,committee on ,financial ,services of the ,house of ,representatives and the ,committee on ,banking1 ,housing1 and ,urban ,affairs of the ,senate containing-- 7,a7 all findings and determinations made in carrying out the review under paragraph 7#a72 and 7,b7 specific recommendations on modifications1 if any1 to-- 7i7 the calculation of the numerator and denominator of the ,,cblr2 7ii7 the treatment of specific asset classes or exposures to better reflect the risk profiles of community banks2 7iii7 the definition of and qualifying criteria for a qualifying community bank2 7iv7 enhancements to the procedures for opting into or out of the ,,cblr framework1 including streamlined reporting and transition mechanisms2 7v7 the grace period to facilitate the transition to and from a modified ,,cblr regime2 and 7vi7 any statutory changes that may be needed to address such recommendations4 7#c7 ,qualifying community bank defined ,in this subsection1 the term qualifying community bank has the meaning given that term in section #bja7;a77#c77;,a7 of the ,economic ,growth1 ,regulatory ,relief1 and ,consumer ,protection ,act 7#ab ,u4,s4,c4 #ecga note74 #bjd4 ,tailoring and ,indexing ,enhanced ,regulations 7a7 ,threshold adjustments ,to account for historical increases in current-,dollar ,united ,states gross domestic product 7#a7 ,federal ,reserve ,act ,section #aa of the ,federal ,reserve ,act 7#ab ,u4,s4,c4 #bdh7 is amended-- 7,a7 by redesignating the second subsection 7s7 7relating to assessments7 as subsection 7t72 and 7,b7 in subsection 7t71 as so redesignated-- 7i7 in paragraph 7#b71 by striking #ajj1jjj1jjj1jjj each place that term appears and inserting #aej1jjj1jjj1jjj2 and 7ii7 in paragraph 7#c71 by striking between #ajj1jjj1jjj1jjj and #bej1jjj1jjj1jjj and inserting between #aej1jjj1jjj1jjj and #cgj1jjj1jjj1jjj4 7#b7 ,bank ,holding ,company ,act of #aief ,section #d7k77#f77;,b77ii7 of the ,bank ,holding ,company ,act of #aief 7#ab ,u4,s4,c4 #ahdc7k77#f77;,b77ii77 is amended by striking #aj1jjj1jjj1jjj and inserting #ae1jjj1jjj1jjj4 7#c7 ,financial ,stability ,act of #bjaj ,the ,financial ,stability ,act of #bjaj 7#ab ,u4,s4,c4 #ecaa et seq47 is amended-- 7,a7 in section #aaf7;a7 7#ab ,u4,s4,c4 #ecbf7;a771 by striking #bej1jjj1jjj1jjj and inserting #cgj1jjj1jjj1jjj2 7,b7 in section #aba7;a7 7#ab ,u4,s4,c4 #ecca7;a771 by striking #bej1jjj1jjj1jjj and inserting #cgj1jjj1jjj1jjj2 7,c7 in section #afc7;b7 7#ab ,u4,s4,c4 #ecfc7;b77-- 7i7 by striking #bej1jjj1jjj1jjj each place that term appears and inserting #cgj1jjj1jjj1jjj2 and 7ii7 by striking #aj1jjj1jjj1jjj and inserting #ae1jjj1jjj1jjj2 7,d7 in section #afd 7#ab ,u4,s4,c4 #ecfd71 by striking #bej1jjj1jjj1jjj and inserting #cgj1jjj1jjj1jjj2 and 7,e7 in section #afe 7#ab ,u4,s4,c4 #ecfe7-- 7i7 in subsection 7a7-- 7,i7 in paragraph 7#a71 by striking #bej1jjj1jjj1jjj and inserting #cgj1jjj1jjj1jjj2 and 7,,ii7 in paragraph 7#b77;,c71 by striking #ajj1jjj1jjj1jjj and inserting #aej1jjj1jjj1jjj2 7ii7 in subsection 7h77#b71 by striking #ej1jjj1jjj1jjj each place that term appears and inserting #ge1jjj1jjj1jjj2 7iii7 in subsection 7i77#b77;,a71 by striking #bej1jjj1jjj1jjj and inserting #cgj1jjj1jjj1jjj2 and 7iv7 in subsection 7j77#a71 by striking #bej1jjj1jjj1jjj and inserting #cgj1jjj1jjj1jjj4 7#d7 ,economic ,growth1 ,regulatory ,relief1 and ,consumer ,protection ,act ,section #dja7;f7 of the ,economic ,growth1 ,regulatory ,relief1 and ,consumer ,protection ,act 7#ab ,u4,s4,c4 #ecfe note7 is amended by striking #bej1jjj1jjj1jjj and inserting #cgj1jjj1jjj1jjj4 7b7 ,periodic adjustments to thresholds ,to account for future increases in current-,dollar ,united ,states gross domestic product 7#a7 ,in general ,the ,financial ,stability ,act of #bjaj 7#ab ,u4,s4,c4 #ecaa et seq47 is further amended by adding at the end the following3 #agg4 ,periodic adjustments to thresholds to account for increases in current-dollar ,united ,states gross domestic product 7a7 ,in general ,by ,april #a1 #bjca1 and the #ast day of each subsequent #e-year period1 the ,board of ,governors shall increase the thresholds described in subsection 7b7 by the ratio1 if greater than #a1 of the annual value of current-dollar ,united ,states gross domestic product1 published by the ,department of ,commerce1 for the calendar year preceding the year in which the adjustment is calculated under this section1 to the published annual value of such index for the calendar year preceding ,april #a1 #bjbf4 7b7 ,covered thresholds ,the thresholds described in this subsection are the following3 7#a7 ,each bank holding company or savings and loan holding company total consolidated asset amount in the second subsection 7s7 7relating to assessments7 of section #aa of the ,federal ,reserve ,act4 7#b7 ,each bank holding company total consolidated asset amount in-- 7,a7 sections #aaf7;a71 #aba7;a71 #afc7;b71 #afd1 #afe7;a77#a71 #afe7;h77#b71 and #afe7;j77#a7 of this ,act2 and 7,b7 section #dja7;f7 of the ,economic ,growth1 ,regulatory ,relief1 and ,consumer ,protection ,act4 7#c7 ,each financial company total consolidated asset amount in section #afe7;i77#b77;,a7 of this ,act4 7c7 ,currency of information ,the values used in the calculation under subsection 7a7 shall be1 as of the date of the calculation1 the values most recently published by the ,department of ,commerce4 7d7 ,rounding 7#a7 ,if any amount equal to or greater than #ajj1jjj1jjj1jjj determined under subsection 7a7 for any period is not a multiple of #ej1jjj1jjj1jjj1 the amount shall be rounded up to the nearest #ej1jjj1jjj1jjj4 7#b7 ,if any amount less than #ajj1jjj1jjj1jjj determined under subsection 7a7 for any period is not a multiple of #e1jjj1jjj1jjj1 the amount shall be rounded up to the nearest #e1jjj1jjj1jjj4 7e7 ,publication ,not later than ,april #e of any calendar year in which an adjustment is required to be calculated under subsection 7a71 the ,board of ,governors shall publish in the ,federal ,register the amounts as so calculated4 7f7 ,implementation period ,any increase in amounts determined under subsection 7a7 shall take effect on ,january #a of the year immediately succeeding the calendar year in which the increase is required to be calculated under subsection 7a74 #agh4 ,adjustments to thresholds established by rule to account for increases in current-dollar ,united ,states gross domestic product 7a7 ,agency review ,not later than ,june #cj1 #bjbf1 and the #ast day of each subsequent #e-year period1 the ,board of ,governors1 the ,comptroller of the ,currency1 and the ,corporation shall1 to the extent applicable1 review-- 7#a7 any regulation-- 7,a7 implementing section #afe of this ,act2 or 7,b7 making specific cross-reference to any regulation of the ,board of ,governors implementing section #afe of this ,act2 and 7#b7 any asset threshold or other quantitative threshold in such regulations implementing section #afe of this ,act1 or in such regulations making specific cross-reference to any regulation of the ,board of ,governors implementing section #afe of this ,act1 the amount of which is not prescribed by statute4 7b7 ,modifications required ,the ,board of ,governors1 the ,comptroller of the ,currency1 and the ,corporation shall modify any such thresholds identified by each review conducted under subsection 7a7 by the ratio1 if greater than #a1 of the annual value of current-dollar ,united ,states gross domestic product1 published by the ,department of ,commerce1 for the calendar year preceding the year in which the modification is calculated under this section1 to the published annual value of such index for the calendar year preceding the effective date of such threshold1 as each respective agency shall determine as appropriate for such regulations4 ,in making such determination1 the ,board of ,governors1 the ,comptroller of the ,currency1 and the ,corporation shall-- 7#a7 use the values for current-dollar ,united ,states gross domestic product most recently published by the ,department of ,commerce as of the date of commencement of the review2 7#b7 seek to establish1 to the extent feasible1 uniform thresholds for use by each such agency1 taking into account the entities regulated by each such agency and the purposes for which such threshold was established2 and 7#c7 seek to adjust such thresholds1 to the extent feasible1 with rounding consistent with section #agg7;d7 of this ,act4 7c7 ,report ,upon conclusion of each review required under subsection 7a71 each of the ,board of ,governors1 the ,comptroller of the ,currency1 and the ,corporation shall transmit a report to the ,committee on ,financial ,services of the ,house of ,representatives and the ,committee on ,banking1 ,housing1 and ,urban ,affairs of the ,senate containing a description of any modification of any regulation such agency made pursuant to subsection 7b74 4 7#b7 ,clerical amendment ,the table of contents in section #a7;b7 of the ,dodd-,frank ,wall ,street ,reform and ,consumer ,protection ,act is amended by inserting after the item relating to section #agf the following3 ,sec4 #agg4 ,periodic adjustments to thresholds to account for increases in current-dollar ,united ,states gross domestic product4,sec4 #agh4 ,adjustments to thresholds established by rule to account for increases in current-dollar ,united ,states gross domestic product4 4 #bje4 ,community ,bank ,regulatory ,tailoring 7a7 ,threshold adjustments to account for historical increases in current-dollar ,united ,states ,gross ,domestic ,product 7#a7 ,bank holding company act of #aief ,the ,bank ,holding ,company ,act of #aief 7#ab ,u4,s4,c4 #ahda et seq47 is amended-- 7,a7 in section #e7;c77#c77;,c77ii7 7#ab ,u4,s4,c4 #ahdd7;c77#c77;,c77ii771 by striking #a1jjj1jjj and inserting #c1jjj1jjj2 and 7,b7 in section #ac7;h77#a77;,b77i7 7#ab ,u4,s4,c4 #ahea7;h77#a77;,b77i771 by striking #aj1jjj1jjj1jjj and inserting #ae1jjj1jjj1jjj4 7#b7 ,community reinvestment act of #aigg ,section #hji7;a7 of the ,community ,reinvestment ,act of #aigg 7#ab ,u4,s4,c4 #bijh7;a77 is amended by striking #bej1jjj1jjj and inserting #hjj1jjj1jjj4 7#c7 ,depository institution management interlocks act ,the ,depository ,institution ,management ,interlocks ,act 7#ab ,u4,s4,c4 #cbja et seq47 is amended-- 7,a7 in section #bjb7d7 7#ab ,u4,s4,c4 #cbja7d771 by striking #ajj1jjj1jjj and inserting #fjj1jjj1jjj2 7,b7 in section #bjc7a7 7#ab ,u4,s4,c4 #cbjb7a771 by striking #ej1jjj1jjj and inserting #aaj1jjj1jjj2 and 7,c7 in section #bjd 7#ab ,u4,s4,c4 #cbjc7-- 7i7 by striking #b1ejj1jjj1jjj and inserting #aj1jjj1jjj1jjj2 and 7ii7 by striking #a1ejj1jjj1jjj and inserting #aj1jjj1jjj1jjj4 7#d7 ,dodd-,frank wall street reform and consumer protection act ,the ,dodd-,frank ,wall ,street ,reform and ,consumer ,protection ,act 7#ab ,u4,s4,c4 #ecja et seq47 is amended-- 7,a7 in section #baj 7#ab ,u4,s4,c4 #ecij7-- 7i7 in subsection 7o71 by striking #ej1jjj1jjj1jjj in each place it appears and inserting #aje1jjj1jjj1jjj2 and 7ii7 in subsection 7r71 by striking #a1jjj1jjj and inserting #e1jjj1jjj2 and 7,b7 in section #ief7;f7 7#ab ,u4,s4,c4 #efda7;f771 by striking #a1jjj1jjj1jjj and inserting #c1jjj1jjj1jjj4 7#e7 ,federal credit union act ,the ,federal ,credit ,union ,act 7#ab ,u4,s4,c4 #agea et seq47 is amended-- 7,a7 in section #bjb 7#ab ,u4,s4,c4 #aghb7-- 7i7 in subsection 7a77#f77;,c77iii7-- 7,i7 in the heading1 by striking ,de ,,minimus and inserting ,de ,,minimis2 and 7,,ii7 by striking #aj1jjj1jjj and inserting #cd1jjj1jjj2 7ii7 in subsection 7a77#f77;,d7-- 7,i7 by striking #ejj1jjj1jjj and inserting #b1jjj1jjj1jjj2 and 7,,ii7 by striking #aj1jjj1jjj and inserting #cd1jjj1jjj2 7iii7 in subsection 7b77#a77;,a71 by striking #ej1jjj1jjj each place that term appears and inserting #agj1jjj1jjj2 and 7iv7 in subsection 7c77#a77;,a77iii71 by striking #ej1jjj1jjj each place that term appears and inserting #agj1jjj1jjj2 and 7,b7 in section #baf 7#ab ,u4,s4,c4 #agij;d7-- 7i7 in subsection 7f77#b71 by striking #aj1jjj1jjj and inserting #cd1jjj1jjj2 7ii7 in subsection 7i77#d77;,b71 by striking #e1jjj1jjj and inserting #ag1jjj1jjj2 7iii7 in subsection 7j77#b77;,a71 by striking #be1jjj1jjj and inserting #ea1jjj1jjj2 and 7iv7 in subsection 7o77#d71 by striking #aj1jjj1jjj and inserting #cd1jjj1jjj4 7#f7 ,federal deposit insurance act ,the ,federal ,deposit ,insurance ,act 7#ab ,u4,s4,c4 #ahaa et seq47 is amended-- 7,a7 in section #g7;a77#ab7 7#ab ,u4,s4,c4 #ahag7;a77#ab771 by striking #e1jjj1jjj1jjj and inserting #h1jjj1jjj1jjj2 7,b7 in section #aa7p77#a77;,a77i7 7#ab ,u4,s4,c4 #ahba7p77#a77;,a77i771 by striking #a1jjj1jjj and inserting #e1jjj1jjj2 7,c7 in section #cf 7#ab ,u4,s4,c4 #ahcam7-- 7i7 in subsection 7i71 by striking #e1jjj1jjj1jjj each place that term appears and inserting #ba1jjj1jjj1jjj2 and 7ii7 in subsection 7j71 by striking #aej1jjj1jjj each place that term appears and inserting #hjj1jjj1jjj2 and 7,d7 in section #ch 7#ab ,u4,s4,c4 #ahcao7-- 7i7 in subsection 7b71 by striking #cjj1jjj1jjj and inserting #b1jjj1jjj1jjj2 and 7ii7 in subsection 7k7-- 7,i7 by striking #ej1jjj1jjj and inserting #aaj1jjj1jjj2 and 7,,ii7 by striking #ge1jjj1jjj and inserting #aej1jjj1jjj4 7#g7 ,federal home loan bank act ,section #b7aj7 of the ,federal ,home ,loan ,bank ,act 7#ab ,u4,s4,c4 #adbb7aj77 is amended by striking #a1jjj1jjj1jjj each place that term appears and inserting #c1jjj1jjj1jjj4 7#h7 ,federal reserve act ,the ,federal ,reserve ,act 7#ab ,u4,s4,c4 #bba et seq47 is amended-- 7,a7 in section #g7;a77#a7 7#ab ,u4,s4,c4 #bhi7 by striking #aj1jjj1jjj1jjj each place that term appears and inserting #ag1jjj1jjj1jjj2 and 7,b7 in section #bb7;h77#e77;,c7 7#ab ,u4,s4,c4 #cge;b7h77#e77;,c77 by striking #ajj1jjj1jjj and inserting #ejj1jjj1jjj4 7#i7 ,home mortgage disclosure act of #aige ,the ,home ,mortgage ,disclosure ,act of #aige 7#ab ,u4,s4,c4 #bhja et seq47 is amended-- 7,a7 in the second paragraph 7#c7 of section #cjd7;i7 7#ab ,u4,s4,c4 #bhjc7;i77#c72 relating to ,exemption from certain disclosure requirements71 by striking #cj1jjj1jjj and inserting #afj1jjj1jjj2 and 7,b7 in section #cji7;a7 7#ab ,u4,s4,c4 #bhjh7;a771 by striking #aj1jjj1jjj and inserting #ahj1jjj1jjj4 7#aj7 ,home owners' loan act ,section #e7u7 of the ,home ,owners' ,loan ,act 7#ab ,u4,s4,c4 #adfd7u77 is amended-- 7,a7 in paragraph 7#b77;,a77i71 by striking #ejj1jjj and inserting #c1jjj1jjj2 and 7,b7 in paragraph 7#b77;,a77ii71 by striking #cj1jjj1jjj and inserting #afj1jjj1jjj4 7#aa7 ,international lending supervision act of #aihc ,section #iji7;a77#a7 of the ,international ,lending ,supervision ,act of #aihc 7#ab ,u4,s4,c4 #cijh7;a77#a77 is amended by striking #bj1jjj1jjj and inserting #afj1jjj1jjj4 7#ab7 ,real estate settlement procedures act of #aigd ,section #c7a77;,b77iv7 of the ,real ,estate ,settlement ,procedures ,act of #aigd 7#ab ,u4,s4,c4 #bfjb7a77;,b77iv77 is amended by striking #a1jjj1jjj and inserting #ai1jjj1jjj4 7#ac7 ,revised statutes of the united states ,section #eacf;,a7a77#b77;,d77ii7 of the ,revised ,statutes of the ,united ,states 7#ab ,u4,s4,c4 #bd;a7a77#b77;,d77ii77 is amended by striking #ej1jjj1jjj1jjj and inserting #age1jjj1jjj1jjj4 7#ad7 ,truth in lending act ,section #abi;,c7b77#b77;,f77i7 of the ,truth in ,lending ,act 7#ae ,u4,s4,c4 #afci;c7b77#b77;,f77i77 is amended by striking #aj1jjj1jjj1jjj and inserting #ae1jjj1jjj1jjj4 7b7 ,threshold adjustments to account for historical increases in current-dollar ,united ,states ,gross ,domestic ,product 7#a7 ,in general ,by ,april #a1 #bjca1 and the #ast day of each subsequent #e-year period1 the ,board of ,governors of the ,federal ,reserve ,system shall prescribe the amount by which each dollar amount described in subsection 7a7 shall be increased by the ratio1 if greater than #a1 of the annual value of current-dollar ,united ,states gross domestic product1 published by the ,department of ,commerce1 for the calendar year preceding the year in which the adjustment is calculated under this subsection1 to the published annual value of current-dollar ,united ,states gross domestic product for the calendar year preceding ,april #a1 #bjbf4 7#b7 ,currency of information ,the values used in the calculation under paragraph 7#a7 shall be1 as of the date of the calculation1 the values most recently published by the ,department of ,commerce4 7#c7 ,rounding 7,a7 ,if any amount equal to or greater than #ajj1jjj1jjj1jjj determined under paragraph 7#a7 for any period is not a multiple of #ej1jjj1jjj1jjj1 the amount shall be rounded up to the nearest #ej1jjj1jjj1jjj4 7,b7 ,if any amount less than #ajj1jjj1jjj1jjj but equal to or greater than #aj1jjj1jjj1jjj determined under paragraph 7#a7 for any period is not a multiple of #e1jjj1jjj1jjj1 the amount shall be rounded up to the nearest #e1jjj1jjj1jjj4 7,c7 ,if any amount less than #aj1jjj1jjj1jjj but equal to or greater than #a1jjj1jjj1jjj determined under paragraph 7#a7 for any period is not a multiple of #ejj1jjj1jjj1 the amount shall be rounded up to the nearest #ejj1jjj1jjj4 7,d7 ,if any amount less than #a1jjj1jjj1jjj but equal to or greater than #ajj1jjj1jjj determined under paragraph 7#a7 for any period is not a multiple of #ej1jjj1jjj1 the amount shall be rounded up to the nearest #ej1jjj1jjj4 7,e7 ,if any amount less than #ajj1jjj1jjj but equal to or greater than #aj1jjj1jjj determined under paragraph 7#a7 for any period is not a multiple of #e1jjj1jjj1 the amount shall be rounded up to the nearest #e1jjj1jjj4 7,f7 ,if any amount less than #aj1jjj1jjj but equal to or greater than #a1jjj1jjj determined under paragraph 7#a7 for any period is not a multiple of #ejj1jjj1 the amount shall be rounded up to the nearest #ejj1jjj4 7,g7 ,if any amount less than #a1jjj1jjj but equal to or greater than #ajj1jjj determined under paragraph 7#a7 for any period is not a multiple of #ej1jjj1 the amount shall be rounded up to the nearest #ej1jjj4 7,h7 ,if any amount less than #ajj1jjj but equal to or greater than #aj1jjj determined under paragraph 7#a7 for any period is not a multiple of #e1jjj1 the amount shall be rounded up to the nearest #e1jjj4 7,i7 ,if any amount less than #aj1jjj but equal to or greater than #a1jjj determined under paragraph 7#a7 for any period is not a multiple of #ejj1 the amount shall be rounded up to the nearest #ejj4 7,j7 ,if any amount less than #a1jjj but equal to or greater than #ajj determined under paragraph 7#a7 for any period is not a multiple of #ej1 the amount shall be rounded up to the nearest #ej4 7,k7 ,if any amount less than #ajj but equal to or greater than #aj determined under paragraph 7#a7 for any period is not a multiple of #e1 the amount shall be rounded up to the nearest #e4 7,l7 ,if any amount less than #aj but equal to or greater than #a determined under paragraph 7#a7 for any period is not a multiple of #j4ej1 the amount shall be rounded up to the nearest #j4ej4 7#d7 ,publication ,not later than ,april #e of any calendar year in which an adjustment is required to be calculated under paragraph 7#a71 the ,board of ,governors of the ,federal ,reserve ,system shall publish in the ,federal ,register the dollar amounts as so calculated4 7#e7 ,implementation period ,the increase in the dollar amounts shall take effect on ,january #a of the year immediately succeeding any calendar year in which an adjustment is required to be calculated under paragraph 7#a74 #bjf4 ,credit ,union ,board ,modernization ,section #aac of the ,federal ,credit ,union ,act 7#ab ,u4,s4,c4 #agfa;b7 is amended-- 7#a7 by striking monthly each place such term appears2 7#b7 in the matter preceding paragraph 7#a71 by striking ,the board of directors and inserting the following3 7a7 ,in general ,the board of directors 2 7#c7 in subsection 7a7 7as so designated71 by striking shall meet at least once a month and2 and 7#d7 by adding at the end the following3 7b7 ,meetings ,the board of directors of a ,federal credit union shall meet as follows3 7#a7 ,with respect to a de novo ,federal credit union1 not less frequently than monthly during each of the first five years of the existence of such ,federal credit union4 7#b7 ,not less than six times annually1 with at least one meeting held during each fiscal quarter1 with respect to a ,federal credit union-- 7,a7 with composite rating of either #a or #b under the ,uniform ,financial ,institutions ,rating ,system 7or an equivalent rating under a comparable rating system72 and 7,b7 with a capability of management rating under such composite rating of either #a or #b4 7#c7 ,not less frequently than once a month1 with respect to a ,federal credit union-- 7,a7 with composite rating of either #c1 #d1 or #e under the ,uniform ,financial ,institutions ,rating ,system 7or an equivalent rating under a comparable rating system72 or 7,b7 with a capability of management rating under such composite rating of either #c1 #d1 or #e4 4 ,,iii ,fair and ,transparent ,bank ,supervision #cja4 ,halting ,uncertain ,methods and ,practices in ,supervision 7a7 ,findings ,congress finds that-- 7#a7 ,,camels ratings 7,capital adequacy1 ,asset quality1 ,management1 ,earnings1 ,liquidity1 and ,sensitivity to market risk7 are a critical tool for evaluating the safety and soundness of financial institutions1 and the basis for determining significant regulatory matters such as the evaluation for mergers and acquisitions and a bank's deposit insurance premiums2 7#b7 the ,,camels rating system relies heavily on examiner judgment1 which can lead to subjective and inconsistent ratings across similar institutions2 7#c7 establishing articulable1 clear1 and reviewable measures for each ,,camels component and their relative weighting in determining composite ratings will promote fairness1 consistency1 and accountability in supervisory assessments2 and 7#d7 examination and supervision1 as well as the ,,camels rating system1 should focus on a financial institution's material financial condition or solvency4 7b7 ,amendments to the ,,camels ,rating ,system 7#a7 ,in general ,the ,federal ,financial ,institutions ,examination ,council ,act of #aigh 7#ab ,u4,s4,c4 #ccja et seq47 is amended by adding at the end the following3 #ajab4 ,amendments to the ,,camels ,rating ,system 7a7 ,in general ,the ,council shall make recommendations to amend the ,uniform ,financial ,institutions ,rating ,system1 and the ,,camels components thereunder1 to-- 7#a7 establish articulable1 clear1 and reviewable criteria for assessing each ,,camels component2 7#b7 revise the factors affecting each ,,camels component to derive a composite rating that more accurately reflects the material financial condition and risk profile of the financial institutions being rated2 7#c7 either-- 7,a7 eliminate the management component of the ,,camels rating system2 or 7,b7 revise the management component of the ,,camels rating system to limit the assessment under such component to articulable1 clear1 and reviewable measures of the governance and controls used to manage an institution's risk profile2 7#d7 ensure that composite ratings consider the financial institution's compliance with-- 7,a7 section #ba of the ,federal ,deposit ,insurance ,act 7#ab ,u4,s4,c4 #ahbi;b72 7,b7 chapter #b of title ,i of ,public ,law #ia-ejh 7#ab ,u4,s4,c4 #aiea et seq472 7,c7 subchapter ,,ii of chapter #ec of title #ca1 ,united ,states ,code2 and 7,d7 any other applicable requirements and implementing regulations relating to the prevention of money laundering and terrorist financing2 and 7#e7 ensure that composite ratings are determined based on a transparent methodology that is limited to the objective criteria established for each ,,camels component4 7b7 ,rulemaking ,not later than #ab months after the ,council makes the recommendations required under subsection 7a71 the ,federal financial institutions regulatory agencies shall1 jointly1 issue rules to carry out the recommendations described under subsection 7a74 7c7 ,public comment period ,in issuing the rules required under subsection 7b71 the ,federal financial institutions regulatory agencies shall-- 7#a7 publish a notice of proposed rulemaking with respect to such rules2 and 7#b7 provide for a public comment period of not less than #ij days4 7d7 ,rule of construction ,nothing in this section may be construed to limit the authority of the ,federal financial institutions regulatory agencies to take supervisory1 adjudicatory1 or enforcement actions to ensure the safety and soundness of financial institutions4 4 7#b7 ,well managed definition ,section #b7o77#i77;,a7 of the ,bank ,holding ,company ,act of #aief 7#ab ,u4,s4,c4 #ahda7o77#i77;,a77 is amended-- 7,a7 by striking achievement of and all that follows through a ,,camel and inserting achievement of a ,,camel2 7,b7 by striking 2 and and inserting 2 or2 and 7,c7 by striking clause 7ii74 #cjb4 ,fair ,audits and ,inspections for ,regulators' ,exams 7a7 ,timeliness of examinations and examination reports ,the ,federal ,financial ,institutions ,examination ,council ,act of #aigh 7#ab ,u4,s4,c4 #ccja et seq471 as amended by section #cja7;b77#a71 is further amended by adding at the end the following3 #ajac4 ,timeliness of examinations and examination reports 7a7 ,timeliness of examinations ,a ,federal financial institutions regulatory agency shall complete any examination of a financial institution1 other than a financial institution subject to a continuous or resident examination program1 within #bgj days of commencing the examination1 except that such period may be extended by the ,federal financial institutions regulatory agency by providing written notice to the financial institution describing with particularity the reasons that a longer period is needed4 7b7 ,final examination report ,a ,federal financial institutions regulatory agency shall provide a final examination report to a financial institution1 other than a financial institution subject to a continuous or resident examination program1 not later than #ij days after the later of-- 7#a7 the exit interview for an examination of the institution2 or 7#b7 the provision of additional material information by the institution relating to the examination4 7c7 ,exit interview requirement ,within #cj days of completing an examination for a financial institution not subject to a continuous or resident examination program1 a ,federal financial institutions regulatory agency shall conduct an exit interview with the financial institution's senior management or the board of directors1 except that such period may be extended by the ,federal financial institutions regulatory agency by providing written notice to the institution describing with particularity the reasons that a longer period is needed to complete the exit interview4 7d7 ,examination materials ,upon the written request of a financial institution1 the ,federal financial institutions regulatory agency shall include with the final report an appendix listing all examination or other factual information relied upon by the agency in support of a material supervisory determination4 4 7b7 ,timeliness of required prudential private letter rulings ,the ,federal ,financial ,institutions ,examination ,council ,act of #aigh 7#ab ,u4,s4,c4 #ccja et seq471 as amended by subsection 7a71 is further amended by adding at the end the following3 #ajad4 ,timeliness of required prudential private letter rulings 7a7 ,authority and regulation 7#a7 ,in general ,each ,federal financial institutions regulatory agency shall establish procedures providing that a covered financial institution may1 upon application by the covered financial institution and with respect to a covered action1 obtain written advice regarding-- 7,a7 the agency's non-objection to the financial institution conducting a particular activity2 7,b7 the agency's interpretation of a law or regulation as applied to a particular matter2 7,c7 the agency's interpretation of how generally accepted accounting principles or accounting objectives1 standards1 and requirements apply to a particular matter2 or 7,d7 the agency's application of any supervisory guidance1 statement of policy1 or interpretive rule to a particular matter4 7#b7 ,covered action defined ,in this subsection and with respect to a covered financial institution1 the term covered action means-- 7,a7 any action in connection with a regulated activity that the covered financial institution is taking or is intending to take1 including-- 7i7 entering into a transaction2 7ii7 issuing a product or service2 or 7iii7 changing the corporate structure of the covered financial institution2 and 7,b7 a ,federal financial institutions regulatory agency's objection to the covered financial institution commencing or otherwise conducting an activity 7including an action described in subparagraph 7,a774 7b7 ,contents of request ,the procedures established under subsection 7a7 shall provide that a request for written advice made under the procedures shall be in writing and contain-- 7#a7 the nature of the request2 7#b7 applicable facts relating to the matter2 7#c7 applicable law1 regulation1 or generally accepted accounting principles relating to the matter2 and 7#d7 a summary of the request4 7c7 ,response to request ,a ,federal financial institutions regulatory agency receiving a request for written advice under subsection 7a7 shall1 not later than #cj days after receiving the request-- 7#a7 provide the financial institution making the request with written notification that the agency received the request and stating whether the request contains all of the information required under subsection 7b72 and 7#b7 if the request does not contain all of the information required under subsection 7b7-- 7,a7 provide the financial institution with an explanation of what information is missing2 and 7,b7 notify the financial institution that the financial institution may provide the missing information to the agency within #cj days4 7d7 ,providing missing information ,if a ,federal financial institutions regulatory agency informs the financial institution under subsection 7c7 that the request for written advice does not contain all the information required under subsection 7b71 the financial institution may provide the missing information to the ,federal financial institutions regulatory agency during the #cj-;day period beginning on the date the financial institution receives the explanation of the missing information under subsection 7c74 7e7 ,determination ,a ,federal financial institutions regulatory agency receiving a request for written advice under the procedures established under subsection 7a7 shall provide the financial institution with a written response 7or1 for purposes of paragraph 7#c71 notify the financial institution that a determination cannot be made7-- 7#a7 if the initial request contains the information required under subsection 7b71 not later than the end of the #fj-;day period beginning on the date the ,federal financial institutions regulatory agency notifies the financial institution of the receipt of the request under subsection 7c72 7#b7 if the initial request does not contain the information required under subsection 7b71 but the financial institution provides the missing information during the #cj-;day period described under subsection 7d71 not later than the end of the #fj-;day period beginning on the date such missing information is provided2 or 7#c7 if the initial request does not contain the information required under subsection 7b71 and the financial institution does not provide the missing information during the #cj-;day period described under subsection 7d71 not later than the end of the #fj-;day period beginning on the end of such #cj-;day period4 7f7 ,limited binding effect ,written advice issued by a ,federal financial institutions regulatory agency under the procedures established under this section-- 7#a7 shall be binding on the agency with respect to the financial institution requesting the written advice and the specific facts described in the request2 7#b7 may be relied upon by the financial institution requesting the written advice in good faith2 and 7#c7 shall not be binding on the agency with respect to any other person or institution and shall not be treated as precedent4 7g7 ,confidentiality and privilege 7#a7 ,treatment of written advice ,written advice issued under this section1 and any materials submitted in connection therewith1 and the fact that a request for written advice was made shall be treated as confidential supervisory information and exempt from disclosure under section #eeb7;b7 of title #e1 ,united ,states ,code4 7#b7 ,publishing of anonymized or redacted summaries ,a ,federal financial institutions regulatory agency may publish anonymized or redacted summaries of rulings for informational purposes4 7h7 ,modification or revocation ,a ,federal financial institutions regulatory agency may modify or revoke written advice issued under this section only if-- 7#a7 the requesting financial institution made a material misstatement or omission of fact2 7#b7 there has been a change in controlling law2 or 7#c7 the ruling is inconsistent with a final rule or judicial decision issued after the date the written advice was issued4 7i7 ,reasonable fees ,each ,federal financial institutions regulatory agency may establish and collect a reasonable fee for the processing and issuance of any written advice issued under this section1 and such fee-- 7#a7 shall be based on the estimated cost to the agency of reviewing1 analyzing1 and responding to the request2 7#b7 may vary based on the complexity of the request or the size of the requesting institution2 and 7#c7 shall be prescribed by regulation4 7j7 ,finality ,written advice issued under the procedures established under this section shall not be construed as a final agency action4 4 7c7 ,office of ,independent ,examination ,review 7#a7 ,in general ,the ,federal ,financial ,institutions ,examination ,council ,act of #aigh 7#ab ,u4,s4,c4 #ccja et seq471 as amended by subsection 7b71 is further amended by adding at the end the following3 #ajae4 ,office of ,independent ,examination ,review 7a7 ,establishment ,there is established in the ,council an ,office of ,independent ,examination ,review 7the ,office74 7b7 ,board of ,independent ,examination ,review 7#a7 ,in general ,the head of the ,office shall be the ,board of ,independent ,examination ,review1 which shall be comprised of #c members1 appointed by the ,president1 by and with the advice and consent of the ,senate4 7#b7 ,qualifications ,the ,president shall appoint #a member of the ,board from each of the following classes of individuals3 7,a7 ,individuals who have been employed by a ,federal financial institutions regulatory agency4 7,b7 ,individuals who are not1 and were not during the previous #e-year period1 employed by a ,federal financial institutions regulatory agency or a ,federal reserve bank and who-- 7i7 are a licensed attorney or a certified public accountant authorized to practice under the laws of a ,state1 the ,district of ,columbia1 or a territory of the ,united ,states2 7ii7 have academic or private sector experience relating to financial services2 or 7iii7 have relevant work-related experience in consumer affairs or compliance with consumer protection laws with respect to financial institutions4 7,c7 ,individuals with at least #aj years private sector financial services senior management-level experience4 7#c7 ,prohibition on certain individuals serving as a ,board member ,the ,president may not appoint an individual as a member of the ,board if the individual-- 7,a7 is1 or was during the previous #b-year period1 employed by a ,federal financial institutions regulatory agency or a ,federal reserve bank2 or 7,b7 is1 or was during the previous #b-year period1 employed by a financial institution4 7#d7 ,consultation ,in appointing members of the ,board1 the ,president shall consult with the ,federal financial institutions regulatory agencies and financial institutions4 7#e7 ,term 7,a7 ,in general ,each member of the ,board shall serve for a term of #c years4 ,upon the expiration of a member's terms of office1 the member shall continue to serve until the member's successor has been confirmed by the ,senate4 7,b7 ,term limitation ,no individual may serve more than #b full terms on the ,board4 7#f7 ,political affiliation ,not more than #b members of the ,board shall be members of the same political party4 7#g7 ,quorum 7,a7 ,in general #c members of the ,board shall constitute a quorum4 7,b7 ,initial quorum ,during the #f-month period beginning on the date of enactment of this section1 #a member of the ,board shall constitute a quorum until the ,board has #c members4 7#h7 ,rate of pay ,the annual rate of basic pay for the members of the ,board shall be the rate of basic pay for ,level ,,iv of the ,executive ,schedule under section #ecae of title #e1 ,united ,states ,code4 7c7 ,staffing ,the ,board is authorized to hire staff to support the activities of the ,office of ,independent ,examination ,review1 and set the salaries of such staff4 ,one-fifth of the costs and expenses of the ,office1 including the salaries of its employees1 shall be paid by each of the ,federal financial institutions regulatory agencies4 ,annual assessments for such share shall be levied by the ,council based upon its projected budget for the year1 and additional assessments may be made during the year if necessary4 7d7 ,duties ,the ,board shall-- 7#a7 receive and1 at the discretion of the ,board1 investigate complaints from financial institutions1 their representatives1 or another entity acting on behalf of such institutions1 concerning completed examinations1 examination practices1 or examination reports2 7#b7 hold meetings1 at least once every three months and in locations designed to encourage participation from all sections of the ,united ,states1 with financial institutions1 their representatives1 or another entity acting on behalf of such institutions1 to discuss examination procedures1 examination practices1 or examination policies2 7#c7 review examination procedures of the ,federal financial institutions regulatory agencies to ensure that the written examination policies of those agencies are being followed in practice and adhere to the standards for consistency2 7#d7 conduct a continuing and regular program of examination quality assurance for all examination types conducted by the ,federal financial institutions regulatory agencies2 7#e7 carry out an independent review of any supervisory appeal initiated under section #ajaf2 and 7#f7 report annually to the ,committee on ,financial ,services of the ,house of ,representatives1 the ,committee on ,banking1 ,housing1 and ,urban ,affairs of the ,senate1 and the ,council1 on the reviews carried out pursuant to paragraphs 7#c7 and 7#e71 including compliance with the requirements set forth in section #ajad regarding timeliness of examination reports1 and the ,board's recommendations for improvements in examination procedures1 practices1 and policies4 7e7 ,confidentiality 7#a7 ,in general ,the ,board and the ,council shall keep confidential-- 7,a7 all meetings1 discussions1 and information provided by financial institutions and ,federal financial institutions regulatory agencies that involve confidential supervisory information or privileged information2 7,b7 all information and communications exchanged between a financial institution and the ,office of ,independent ,examination ,review2 and 7,c7 all information and communications exchanged between a ,federal financial institutions regulatory agency and the ,office of ,independent ,examination ,review4 7#b7 ,submission of information does not constitute a waiver ,section #ah7x7 of the ,federal ,deposit ,insurance ,act 7#ab ,u4,s4,c4 #ahbh7x77 shall apply to the submission of information to the ,board by a financial institution or a ,federal financial institutions regulatory agency to the same extent as such section #ah7x7 applies to the submission of information described in that section #ah7x74 7#c7 ,sharing of information without waiving privilege ,the ,board shall be considered a covered agency for purposes of section #aa7t7 of the ,federal ,deposit ,insurance ,act 7#ab ,u4,s4,c4 #ahba7t774 4 7#b7 ,definitions ,section #ajjc of the ,federal ,financial ,institutions ,examination ,council ,act of #aigh 7#ab ,u4,s4,c4 #ccjb7 is amended-- 7,a7 in paragraph 7#b71 by striking and at the end2 and 7,b7 by adding at the end the following3 7#d7 the term ,board means the ,board of ,independent ,examination ,review established under section #ajae7;b72 7#e7 the term material supervisory determination has the meaning given such term in section #cji7;c7 of the ,riegle ,community ,development and ,regulatory ,improvement ,act of #aiid2 7#f7 the term insured depository institution has the meaning given that term in section #c of the ,federal ,deposit ,insurance ,act2 and 7#g7 the term insured credit union has the meaning given that term in section #aja of the ,federal ,credit ,union ,act4 4 7d7 ,right to independent review of material supervisory determinations ,the ,federal ,financial ,institutions ,examination ,council ,act of #aigh 7#ab ,u4,s4,c4 #ccja et seq471 as amended by subsection 7c71 is further amended by adding at the end the following3 #ajaf4 ,right to independent review of material supervisory determinations 7a7 ,in general ,a financial institution shall have the right to obtain an independent review1 as described in this section1 of a material supervisory determination contained in a final report of examination4 7b7 ,notice 7#a7 ,timing ,a financial institution seeking review of a material supervisory determination under this section shall file a written notice with the ,board within #cj days after receiving the final report of examination that is the subject of such review4 7#b7 ,extension ,the institution may file a written request with the ,board for an extension of the #fj-;day time period described under paragraph 7#a71 which shall state good cause for granting the extension4 ,such request shall be granted in the sole discretion of the ,board4 7#c7 ,identification of determination ,the written notice shall-- 7,a7 identify the material supervisory determination that is the subject of the requested independent examination review2 7,b7 state the reasons why the institution believes that the material supervisory determination is incorrect or should otherwise be modified2 and 7,c7 include-- 7i7 a clear and complete statement of all relevant facts and issues2 7ii7 all arguments that the institution wishes to present2 and 7iii7 all relevant and material documents in the possession of the institution that the institution wishes to be considered4 7#d7 ,information made available to institution ,an institution seeking a review of a material supervisory determination may1 not later than #g days after receiving the final examination report1 request that the ,federal financial institutions regulatory agency that made the material supervisory determination provide the institution with all examination and factual information relied upon by the agency in making the material supervisory determination4 ,the agency shall provide that information to the institution not later than #ad days after receiving the request4 7#e7 ,submission of record ,after receiving a written notice of review from a financial institution under this subsection1 the ,board shall direct the ,federal financial institutions regulatory agency that made the material supervisory determination under review to file with the ,board the supervisory record of the examination resulting in the material supervisory determination under review4 7c7 ,determination2 right to hearing 7#a7 ,in general ,the ,board shall-- 7,a7 determine the merits on the record1 including whether the material supervisory determination being reviewed should be upheld1 canceled1 or modified2 or 7,b7 at the election of the financial institution1 conduct a hearing1 which shall take place not later than #fj days after the petition for review is received by the ,board4 7#b7 ,right to obtain testimony ,a financial institution electing for a hearing under paragraph 7#a77;,b7 shall have the right the obtain testimony under oath from agency employees and obtain documents and other evidence at the hearing1 or in advance of the hearing1 according to procedures instituted by the ,board consistent with those set forth under sections #eef and #eeg of title #e1 ,united ,states ,code4 7#c7 ,basis of decision ,the ,board shall issue a written decision based upon the record of the examination1 supplemented by the record established at any hearing4 7#d7 ,standard of review ,the ,board's review of a material supervisory determination being reviewed under this subsection shall be de novo1 and the ,board shall not defer to the opinions of examiners1 but shall independently determine the appropriateness of the material supervisory determination based upon the relevant statutes1 regulations1 other appropriate guidance1 and the evidentiary record4 7#e7 ,policy matters ,the ,board shall conduct reviews under this section applying the policies1 regulations1 and interpretations of the ,federal financial institutions regulatory agency that made the material supervisory determination under review in effect at the time the material supervisory determination was made4 7d7 ,final decision ,a decision by the ,board on an independent review under this section shall-- 7#a7 be made not later than #fj days after the record has been closed2 and 7#b7 be deemed final and shall bind the agency whose supervisory determination was the subject of the review and the financial institution requesting the review4 7e7 ,referral of violations ,if the ,board1 in carrying out this section1 determines that a financial institution has violated a law or regulation1 the ,board shall refer such determination to the applicable ,federal financial institutions regulatory agency4 7f7 ,annual report 7#a7 ,in general ,the ,board shall report annually to the ,committee on ,financial ,services of the ,house of ,representatives1 the ,committee on ,banking1 ,housing1 and ,urban ,affairs of the ,senate1 and the ,council on actions taken under this section1 including the types of issues that the ,board has reviewed and the results of those reviews1 including information on each final determination with respect to a material supervisory determination4 7#b7 ,confidentiality ,in reporting under paragraph 7#a71 the ,board shall redact information about individual financial institutions and any confidential supervisory information or privileged information shared by financial institutions1 and shall anonymize any un-redacted information that could1 in the aggregate1 identify a financial institution4 7g7 ,retaliation prohibited 7#a7 ,in general ,a ,federal financial institutions regulatory agency may not-- 7,a7 retaliate against a financial institution1 including service providers1 or any institution-affiliated party1 for exercising appellate rights under this section2 or 7,b7 delay or deny any agency action that would benefit a financial institution or any institution-affiliated party on the basis that an appeal under this section is pending under this section4 7#b7 ,retaliation ,for purposes of this subsection1 retaliation includes delaying consideration of1 or withholding approval of1 any request1 notice1 or application that otherwise would have been approved1 but for the exercise of a financial institution's rights under this section4 7h7 ,rulemaking ,the ,board shall issue rules to establish procedures for hearings described under this section1 including that-- 7#a7 a financial institution may appear at the hearing personally or through counsel2 7#b7 a financial institution may provide an oral and written presentation at the hearing2 7#c7 the ,board may ask questions of any person participating in the hearing2 7#d7 the hearing shall not be governed by the ,federal ,rules of ,evidence2 and 7#e7 the ,board shall have a verbatim transcript of the hearing prepared4 7i7 ,safety and soundness exception ,the appeal of a material supervisory determination by a financial institution under this section shall not affect the authority of a ,federal financial institutions regulatory agency during the pendency of such appeal to enforce the material supervisory determination or to take an action based on such material supervisory determination1 if the ,federal financial institutions regulatory agency determines that such enforcement or action is necessary to ensure the immediate safety and soundness of the financial institution4 4 7e7 ,additional amendments 7#a7 ,regulatory appeals process1 ombudsman1 and alternative dispute resolution 7,a7 ,in general ,section #cji of the ,riegle ,community ,development and ,regulatory ,improvement ,act of #aiid 7#ab ,u4,s4,c4 #dhjf7 is amended-- 7i7 in the heading1 by striking ,,regulatory ,,appeals ,,process1 ,,ombudsman1 and inserting ,,ombudsman 7and by conforming the item relating to such section in the table of contents accordingly72 7ii7 by striking subsections 7a71 7b71 and 7c72 7iii7 by redesignating subsections 7d71 7e71 7f71 and 7g7 as subsections 7a71 7b71 7c71 and 7d71 respectively2 7iv7 in subsection 7b71 as so redesignated-- 7,i7 in paragraph 7#b7-- 7aa7 in subparagraph 7,b71 by striking and at the end2 7bb7 in subparagraph 7,c71 by striking the period and inserting 2 and2 and 7cc7 by adding at the end the following3 7,d7 ensure that appropriate safeguards exist for protecting any party from retaliation by any agency for exercising rights under this subsection4 2 and 7,,ii7 by adding at the end the following3 7#f7 ,retaliation ,for purposes of this subsection1 retaliation includes delaying consideration of1 or withholding approval of1 any request1 notice1 or application that otherwise would have been approved1 but for the exercise of a financial institution's rights under this section4 2 and 7v7 in paragraph 7#a77;,a7 of subsection 7c71 as so redesignated-- 7,i7 in clause 7ii71 by striking 2 and and inserting a semicolon2 7,,ii7 in clause 7iii71 by striking 2 and and inserting a semicolon2 and 7,,iii7 by adding at the end the following3 7iv7 any issue specifically listed in an exam report as a matter requiring attention by the institution's management or board of directors2 and 7v7 any suspension or removal of an institution's status as eligible for expedited processing of applications1 requests1 notices1 or filings on the grounds of a supervisory or compliance concern1 regardless of whether that concern has been cited as a basis for a material supervisory determination or matter requiring attention in an examination report1 provided that the conduct at issue did not involve violation of any criminal law2 and 4 7,b7 ,effect ,nothing in this subsection affects the authority of a ,federal banking agency 7as defined in section #c of the ,federal ,deposit ,insurance ,act 7#ab ,u4,s4,c4 #ahac77 or the ,national ,credit ,union ,administration ,board to take enforcement or other supervisory action4 7#b7 ,federal ,credit ,union ,act ,section #bje7;j7 of the ,federal ,credit ,union ,act 7#ab ,u4,s4,c4 #aghe7;j77 is amended by inserting the ,bureau of ,consumer ,financial ,protection1 before the ,administration each place that term appears4 7#c7 ,federal ,financial ,institutions ,examination ,council ,act ,the ,federal ,financial ,institutions ,examination ,council ,act of #aigh 7#ab ,u4,s4,c4 #ccja et seq47 is amended-- 7,a7 in section #ajjc 7#ab ,u4,s4,c4 #ccjb7-- 7i7 by striking paragraph 7#a7 and inserting the following3 7#a7 the term ,federal financial institutions regulatory agencies-- 7,a7 means the ,office of the ,comptroller of the ,currency1 the ,board of ,governors of the ,federal ,reserve ,system1 the ,federal ,deposit ,insurance ,corporation1 and the ,national ,credit ,union ,administration2 and 7,b7 includes the ,bureau of ,consumer ,financial ,protection for purposes of sections #ajab through #ajae2 2 and 7ii7 in paragraph 7#c71 by striking the semicolon at the end and inserting 1 except that for purposes of sections #ajac through #ajaf1 the term financial institution does not include a credit union that is not an insured credit union22 7,b7 in section #ajjd7;a77#d7 7#ab ,u4,s4,c4 #ccjc71 by striking ,consumer ,financial ,protection ,bureau and inserting ,bureau of ,consumer ,financial ,protection2 and 7,c7 in section #ajje 7#ab ,u4,s4,c4 #ccjd7-- 7i7 by striking ,one-fifth and inserting ,one-fourth2 and 7ii7 by inserting described under section #ajjc7a77;,a7 after agencies4 7f7 ,election of forum for review of supervisory enforcement ,section #h of the ,federal ,deposit ,insurance ,act 7#ab ,u4,s4,c4 #ahah7 is amended-- 7#a7 in subsection 7b71 by adding at the end the following3 7#aa7 ,hearing ,with respect to any notice properly issued and served upon a depository institution or institution-affiliated party under this subsection1 such depository institution or institution-affiliated party shall be afforded a hearing before-- 7,a7 the appropriate ,federal banking agency2 or 7,b7 if such institution or person submits a request within #bj days after the issuance of the notice1 the appropriate ,united ,states district court1 and that court shall have jurisdiction to adjudicate all claims and requested remedies stated in the notice of charges1 including those authorized under this subsection4 2 7#b7 in subsection 7e71 by adding at the end the following3 7#h7 ,hearing ,with respect to any notice properly issued and served upon an institution-affiliated party under this subsection1 such institution-affiliated party shall be afforded a hearing before-- 7,a7 the appropriate ,federal banking agency2 or 7,b7 if such party submits a request for such hearing and forum within #bj days after the issuance of the notice1 the appropriate ,united ,states district court1 and that court shall have jurisdiction to adjudicate all claims and requested remedies stated in the notice1 including those authorized under this subsection4 2 7#c7 in subsection 7h7-- 7,a7 in paragraph 7#a71 by striking 7other than the hearing provided for in subsection 7g77#c7 of this section7 and inserting 7other than the hearing provided for in subsection 7b77#aa77;,b71 7e77#h77;,b71 7g77#c71 or 7i77#b77;,h77ii772 and 7,b7 by adding at the end the following3 7#d7 ,any hearing provided for in subsection 7b77#aa77;,b71 7e77#h77;,b71 or 7i77#b77;,h77ii7 shall be subject to the jurisdiction1 powers1 and equitable authority of the district court and be governed by the ,federal ,rules of ,civil ,procedure and the ,federal ,rules of ,evidence4 7#e7 ,any final decision of a ,united ,states district court made pursuant to a respondent's election under subsection 7b77#aa77;,b71 7e77#h77;,b71 or 7i77#b77;,h77ii7 shall be reviewable in the appropriate court of appeals in the same manner and to the same extent as any other civil action to which the ,united ,states is a party4 2 7#d7 in subsection 7i77#b7-- 7,a7 by amending subparagraph 7,e77ii7 to read as follows3 7ii7 ,finality of assessment ,if1 with respect to any assessment under clause 7i71 a hearing is not requested or an election is not made and timely noticed pursuant to subparagraph 7,h7 within the period of time allowed under such subparagraph1 the assessment shall constitute a final and unappealable order4 2 7,b7 by amending subparagraph 7,h7 to read as follows3 7,h7 ,hearing ,the insured depository institution or institution-affiliated party against whom any penalty is assessed under this paragraph shall be afforded a hearing before-- 7i7 an agency1 if such institution or person submits a request for such hearing within #bj days after the issuance of the notice of assessment2 or 7ii7 the appropriate ,united ,states district court1 if such institution or person submits a request for such hearing and forum within #bj days after the issuance of the notice of assessment4 2 and 7,c7 by amending subparagraph 7,i77ii7 to read as follows3 7ii7 ,appropriateness of penalty not reviewable ,in any civil action under clause 7i71 except a civil action tried in a ,united ,states district court pursuant to subsection 7b77#aa77;,b71 7e77#h77;,b71 or 7i77#b77;,h77ii71 the validity and appropriateness of the penalty shall not be subject to review4 2 and 7#e7 by adding at the end the following3 7x7 ,savings clause ,nothing in subsection 7b77#aa77;,b71 7e77#h77;,b71 or 7i77#b77;,h77ii7 shall be construed to-- 7#a7 limit the authority of a ,federal banking agency to initiate an administrative enforcement action2 or 7#b7 impair the validity of any consent order4 4 #cjc4 ,supervisory ,modifications for ,appropriate ,risk-based ,testing 7a7 ,examination relief for certain well managed and well capitalized financial institutions 7#a7 ,insured depository institutions ,section #aj7;d7 of the ,federal ,deposit ,insurance ,act 7#ab ,u4,s4,c4 #ahbj7;d77 is amended by adding at the end the following3 7#aa7 ,examination relief for certain well managed and well capitalized insured depository institutions 7,a7 ,in general ,the following shall apply to a well managed and well capitalized insured depository institution with #f1jjj1jjj1jjj or less in consolidated assets3 7i7 ,alternating limited-scope examinations ,after an insured depository institution receives a full-scope1 on-site examination from the appropriate ,federal banking agency1 the next examination of the insured depository institution by the appropriate ,federal banking agency shall be a limited-scope examination1 as determined by the appropriate ,federal banking agency4 7ii7 ,combined examinations ,if an insured depository institution is otherwise subject to separate safety and soundness examinations1 consumer compliance examinations1 and information technology and cybersecurity examinations1 the appropriate ,federal banking agency shall1 upon request of the insured depository institution1 combine two or three such examinations1 as specified by the insured depository institution1 and carry them out at the same time4 7,b7 ,exception ,subparagraph 7,a7 shall not apply to an insured depository institution if-- 7i7 the insured depository institution is currently subject to a formal enforcement proceeding or order by the ,corporation or the appropriate ,federal banking agency2 or 7ii7 a person acquired control of the insured depository institution since the most recent full-scope1 on-site examination of the insured depository institution from the appropriate ,federal banking agency4 7,c7 ,rulemaking ,not later than #ab months after the date of enactment of this paragraph1 the ,federal banking agencies shall issue rules to carry out subparagraph 7,a71 including1 with respect to an insured depository institution described under subparagraph 7,a71 to-- 7i7 establish procedures for the limited-scope examinations described in subparagraph 7,a77i72 7ii7 establish procedures for reviewing insured depository institutions described under subparagraph 7,a71 that-- 7,i7 experience material changes in financial condition or operational risk profile between scheduled examinations2 or 7,,ii7 have failed to comply with ,federal or ,state banking laws and regulations2 and 7iii7 balance the goals of streamlining the examination cycle for individual insured depository institutions and reducing unnecessary regulatory burdens while maintaining sufficient oversight to ensure the continued safety and soundness of the insured depository institutions and compliance with all applicable laws and regulations4 7,d7 ,rule of construction ,nothing in this paragraph may be construed to limit the authority of a ,federal banking agency to conduct off-site monitoring1 targeted reviews1 or additional full-scope1 on-site examinations of an insured depository institution if the ,federal banking agency determines such monitoring1 reviews1 or examinations are necessary to ensure safety and soundness or compliance with applicable laws4 7,e7 ,definitions ,in this paragraph3 7i7 ,consumer compliance examination ,the term consumer compliance examination means an examination to assess compliance with the requirements of ,federal consumer financial law 7as such term is defined in section #ajjb of the ,consumer ,financial ,protection ,act of #bjaj74 7ii7 ,well capitalized ,the term well capitalized has the meaning given that term in section #ch7;b74 7iii7 ,well managed ,with respect to an insured depository institution1 the term well managed means that1 when the institution was most recently examined by the appropriate ,federal banking agency1 the institution was found to be well managed1 and the institution's composite condition was found to be satisfactory or outstanding4 4 7#b7 ,insured credit unions ,section #bjd of the ,federal ,credit ,union ,act 7#ab ,u4,s4,c4 #aghd7 is amended by adding at the end the following3 7h7 ,examination relief for certain well managed and well capitalized insured credit unions 7#a7 ,in general ,the following shall apply to a well managed and well capitalized insured credit union with #f1jjj1jjj1jjj or less in consolidated assets3 7,a7 ,alternating limited-scope examinations ,after an insured credit union receives a full-scope1 on-site examination from the ,national ,credit ,union ,administration1 the next examination of the insured credit union by the ,national ,credit ,union ,administration shall be a limited-scope examination1 as determined by the ,national ,credit ,union ,administration4 7,b7 ,combined examinations ,if an insured credit union is otherwise subject to separate safety and soundness examinations1 consumer compliance examinations1 and information technology and cybersecurity examinations1 the ,national ,credit ,union ,administration shall1 upon request of the insured credit union1 combine two or three such examinations1 as specified by the insured credit union1 and carry them out at the same time4 7#b7 ,exception ,paragraph 7#a7 shall not apply to an insured credit union if the insured credit union is currently subject to a formal enforcement proceeding or order by the ,national ,credit ,union ,administration4 7#c7 ,rulemaking ,not later than #ab months after the date of enactment of this subsection1 the ,national ,credit ,union ,administration shall issue rules to carry out paragraph 7#a71 including1 with respect to an insured credit union described under paragraph 7#a71 to-- 7,a7 establish procedures for the limited-scope examinations described in paragraph 7#a77;,a72 7,b7 establish procedures for reviewing insured credit unions that-- 7i7 experience material changes in financial condition or operational risk profile between scheduled examinations2 or 7ii7 have failed to comply with ,federal or ,state banking laws and regulations2 and 7,c7 balance the goals of streamlining the examination cycle for individual insured credit unions and reducing unnecessary regulatory burdens while maintaining sufficient oversight to ensure the continued safety and soundness of the insured credit unions and compliance with all applicable laws and regulations4 7#d7 ,rule of construction ,nothing in this subsection may be construed to limit the authority of the ,national ,credit ,union ,administration to conduct off-site monitoring1 targeted reviews1 or additional full-scope1 on-site examinations of an insured credit union if the ,national ,credit ,union ,administration determines such monitoring1 reviews1 or examinations are necessary to ensure safety and soundness or compliance with applicable laws4 7#e7 ,definitions ,in this paragraph3 7,a7 ,consumer compliance examination ,the term consumer compliance examination means an examination to assess compliance with the requirements of ,federal consumer financial law 7as such term is defined in section #ajjb of the ,consumer ,financial ,protection ,act of #bjaj74 7,b7 ,well capitalized ,the term well capitalized has the meaning given that term in section #baf7;c74 7,c7 ,well managed ,with respect to an insured credit union1 the term well managed means that1 when the credit union was most recently examined by the ,national ,credit ,union ,administration1 the credit union was found to be well managed1 and the credit union's composite condition was found to be satisfactory or outstanding4 4 7b7 ,examination practices 7#a7 ,insured depository institutions ,section #aj7;d7 of the ,federal ,deposit ,insurance ,act 7#ab ,u4,s4,c4 #ahbj7;d771 as amended by subsection 7a77#a71 is further amended by adding at the end the following3 7#ab7 ,examination practices ,with respect to on-site examination of an insured depository institution with less than #f1jjj1jjj1jjj in total assets1 the appropriate ,federal banking agency shall-- 7,a7 ensure the examination is led by1 to the maximum extent practicable1 an examiner with significant experience as an examiner2 7,b7 make every effort1 to the maximum extent practicable1 to minimize the number of examiners utilized and the amount of time spent at the institution to carry out the examination2 7,c7 make every effort1 to the maximum extent practicable1 to schedule the examination at a time that is convenient for the institution2 and 7,d7 to the maximum extent practicable1 give the institution advance notice of issues expected to be covered in the examination4 7#ac7 ,report ,in its annual report to ,congress1 each ,federal banking agency shall include-- 7,a7 information on how the agency is complying with paragraphs 7#aa7 and 7#ab72 and 7,b7 aggregate data summarizing the agency's examination practices with respect to insured depository institutions with less than #f1jjj1jjj1jjj in total assets1 including-- 7i7 the average experience of examiners1 including the average number of years of examiner experience of those who lead on-site examinations2 7ii7 the average number of examiners utilized2 and 7iii7 the average amount of time the agency spends visiting such institutions for on-site examinations4 4 7#b7 ,insured credit unions ,section #bjd of the ,federal ,credit ,union ,act 7#ab ,u4,s4,c4 #aghd71 as amended by subsection 7a77#b71 is further amended by adding at the end the following3 7i7 ,examination practices ,with respect to on-site examination of an insured credit union with less than #f1jjj1jjj1jjj in total assets1 the ,national ,credit ,union ,administration shall-- 7#a7 ensure the examination is led by1 to the maximum extent practicable1 an examiner with significant experience as an examiner2 7#b7 make every effort1 to the maximum extent practicable1 to minimize the number of examiners utilized and the amount of time spent at the credit union to carry out the examination2 7#c7 make every effort1 to the maximum extent practicable1 to schedule the examination at a time that is convenient for the credit union2 and 7#d7 to the maximum extent practicable1 give the credit union advance notice of issues expected to be covered in the examination4 7j7 ,report ,in its annual report to ,congress1 the ,national ,credit ,union ,administration shall include-- 7#a7 information on how the ,administration is complying with subsections 7h7 and 7i72 and 7#b7 aggregate data summarizing the ,administration's examination practices with respect to insured credit unions with less than #f1jjj1jjj1jjj in total assets1 including-- 7,a7 the average experience of examiners1 including the average number of years of examiner experience of those who lead on-site examinations2 7,b7 the average number of examiners utilized2 and 7,c7 the average amount of time the ,administration spends visiting such credit unions for on-site examinations4 4 #cjd4 ,tailored ,regulatory ,updates for ,supervisory ,testing ,section #aj7;d7 of the ,federal ,deposit ,insurance ,act 7#ab ,u4,s4,c4 #ahbj7;d77 is amended-- 7#a7 in paragraph 7#d77;,a71 by striking #c1jjj1jjj1jjj and inserting #f1jjj1jjj1jjj2 and 7#b7 in paragraph 7#aj71 by striking #c1jjj1jjj1jjj and inserting #f1jjj1jjj1jjj4 #cje4 ,financial ,integrity and ,regulation ,management 7a7 ,findings ,congress finds that-- 7#a7 the primary objective of financial regulation and supervision by the ,federal banking agencies is to promote safety and soundness of depository institutions2 7#b7 all federally legal businesses and law-abiding citizens regardless of political ideology should have equal opportunity to obtain financial services and should not face unlawful discrimination in obtaining such services2 7#c7 financial service providers are private entities entitled to provide services to whichever customers they so choose1 provided that those decisions do not violate the law2 7#d7 financial service providers should strive to ensure that all business decisions are based on factors free from unlawful prejudice or political influence2 7#e7 the use of reputational risk in supervisory frameworks encourages ,federal banking agencies to regulate depository institutions based on the subjective view of negative publicity and provides cover for the agencies to implement their own political agenda unrelated to the safety and soundness of a depository institution2 7#f7 ,federal banking agencies have in fact used reputational risk to limit access of federally legal businesses and law-abiding citizens to financial services in #bjah when the ,federal ,deposit ,insurance ,corporation acknowledged that the agency used reputational risk reviews to limit access to financial services by certain industries1 commonly known as ,operation ,choke ,point2 and 7#g7 reputational risk does not appear in any statute and is an unnecessary and improper use of supervisory authority that does not contribute to the safety and soundness of the financial system4 7b7 ,definitions ,in this section3 7#a7 ,depository institution ,the term depository institution-- 7,a7 has the meaning given the term in section #c of the ,federal ,deposit ,insurance ,act 7#ab ,u4,s4,c4 #ahac72 7,b7 includes a depository institution holding company1 as such term is defined in section #c of the ,federal ,deposit ,insurance ,act 7#ab ,u4,s4,c4 #ahac72 and 7,c7 includes an insured credit union1 as such term is defined in section #aja of the ,federal ,credit ,union ,act 7#ab ,u4,s4,c4 #ageb74 7#b7 ,federal banking agency ,the term ,federal banking agency-- 7,a7 has the meaning given the term in section #c of the ,federal ,deposit ,insurance ,act 7#ab ,u4,s4,c4 #ahac72 and 7,b7 includes-- 7i7 the ,national ,credit ,union ,administration2 and 7ii7 the ,bureau of ,consumer ,financial ,protection4 7#c7 ,foreign terrorist organization ,the term foreign terrorist organization means a foreign organization that is designated by the ,secretary of ,state in accordance with section #bai of the ,immigration and ,nationality ,act 7#h ,u4,s4,c4 #aahi74 7#d7 ,reputational risk ,the term reputational risk means the potential that negative publicity or negative public opinion regarding a depository institution's business practices1 whether true or not1 will cause a decline in confidence in the institution or a decline in the customer base1 costly litigation1 or revenue reductions or otherwise adversely impact the depository institution4 ,the previous sentence does not apply to negative publicity or negative public opinion regarding an institution's business practices where such practices involve unlawful transactions in connection with state sponsors of terrorism or foreign terrorist organizations4 7#e7 ,state sponsors of terrorism ,the term state sponsors of terrorism means a country1 the government of which has been determined by the ,secretary of ,state to have repeatedly provided support for acts of international terrorism1 for purposes of-- 7,a7 section #aged7;c77#a77;,a77i7 of the ,export ,control ,reform ,act of #bjah 7#ej ,u4,s4,c4 #dhac7;c77#a77;,a77i772 7,b7 section #fbj;,a of the ,foreign ,assistance ,act of #aifa 7#bb ,u4,s4,c4 #bcga72 7,c7 section #dj7;d7 of the ,arms ,export ,control ,act 7#bb ,u4,s4,c4 #bghj7;d772 or 7,d7 any other provision of law4 7c7 ,removal of reputational risk as a consideration in the supervision of depository institutions ,each ,federal banking agency shall remove from any guidance1 rule1 examination manual1 or similar document established by the agency any reference to reputational risk1 or any term substantially similar1 regarding the supervision of depository institutions such that reputational risk1 or any term substantially similar1 is no longer taken into consideration by the ,federal banking agency when examining and supervising a depository institution4 7d7 ,prohibition ,no ,federal banking agency may engage in any activity concerning or related to the regulation1 supervision1 or examination of the reputational risk1 or any term substantially similar1 or the management thereof1 of a depository institution1 including-- 7#a7 establishing any rule1 regulation1 requirement1 standard1 or supervisory expectation concerning or related to the reputational risk1 or any term substantially similar1 or the management thereof1 of a depository institution whether binding or not2 7#b7 conducting any examination1 assessment1 data collection1 or other supervisory exercise concerning or related to reputational risk1 or any term substantially similar1 or the management thereof1 of a depository institution2 7#c7 issuing any examination finding1 supervisory criticism1 or other supervisory or examination communication concerning or related to reputational risk1 or any term substantially similar1 or the management thereof1 of a depository institution2 7#d7 making any supervisory ratings decision or determination that is based1 in whole or in part1 on any matter concerning or related to reputational risk1 or any term substantially similar1 or the management thereof1 of a depository institution2 and 7#e7 taking any formal or informal enforcement action that is based1 in whole or in part1 on any matter concerning or related to reputational risk1 or any term substantially similar1 or the management thereof1 of a depository institution4 7e7 ,reports ,not later than #ahj days after the date of enactment of this ,act1 each ,federal banking agency shall submit to the ,committee on ,banking1 ,housing1 and ,urban ,affairs of the ,senate and the ,committee on ,financial ,services of the ,house of ,representatives a report that-- 7#a7 confirms implementation of this section2 and 7#b7 describes any changes made to internal policies as a result of this section4 ,,iv ,regulatory ,accountability and ,transparency #dja4 ,,fdic ,board ,accountability ,section #b of the ,federal ,deposit ,insurance ,act 7#ab ,u4,s4,c4 #ahab7 is amended-- 7#a7 by striking ,consumer ,financial ,protection ,bureau each place such term appears and inserting ,bureau of ,consumer ,financial ,protection2 7#b7 by amending subsection 7a77#a77;,c7 to read as follows3 7,c7 #c of whom shall be appointed by the ,president1 by and with the advice and consent of the ,senate1 from among individuals who are citizens of the ,united ,states1 #a of whom shall have ,state bank supervisory experience1 and separately #a of whom shall have demonstrated primary experience working in or supervising depository institutions having less than #ag1jjj1jjj1jjj in total assets4 2 and 7#c7 in subsection 7c7-- 7,a7 in paragraph 7#a71 by adding at the end the following3 ,no individual may be appointed as a member for more than two terms42 and 7,b7 by adding at the end the following3 7#d7 ,maximum length of service ,notwithstanding any other provision of this ,act1 no person shall serve as a member for more than twelve years in total4 4 #djb4 ,stop ,agency ,fiat ,enforcement of ,guidance 7a7 ,in general ,the head of each financial agency shall include a guidance clarity statement as described in subsection 7b7 on any guidance issued by that financial agency on and after the date of the enactment of this ,act4 7b7 ,guidance clarity statement ,a guidance clarity statement required under subsection 7a7 shall be displayed prominently on the first page of the document and shall include the following3 ,this guidance does not have the force and effect of law and therefore does not establish any rights or obligations for any person and is not binding on the agency or the public4 ,if this guidance suggests how regulated entities may comply with applicable statutes or regulations1 noncompliance with this guidance does not conclusively establish a violation of applicable law44 7c7 ,definitions ,in this section3 7#a7 ,financial agency ,the term financial agency means the following3 7,a7 ,the ,bureau of ,consumer ,financial ,protection4 7,b7 ,the ,department of ,housing and ,urban ,development4 7,c7 ,the ,department of the ,treasury4 7,d7 ,the ,federal ,deposit ,insurance ,corporation4 7,e7 ,the ,federal ,housing ,finance ,agency4 7,f7 ,the ,board of ,governors of the ,federal ,reserve ,system4 7,g7 ,the ,national ,credit ,union ,administration4 7,h7 ,the ,office of the ,comptroller of the ,currency4 7,i7 ,the ,securities and ,exchange ,commission4 7#b7 ,guidance ,the term guidance means a financial agency statement of general applicability1 intended to have a future effect on the behavior of regulated parties1 that sets forth a policy on a statutory1 regulatory1 or technical issue1 or an interpretation of a statute or regulation1 but does not include-- 7,a7 a rule promulgated pursuant to notice and comment under section #eec of title #e1 ,united ,states ,code2 7,b7 a rule exempt from rulemaking requirements under section #eec7;a7 of title #e1 ,united ,states ,code2 7,c7 a rule of financial agency organization1 procedure1 or practice under section #eec7;b77,a7 of title #e1 ,united ,states ,code2 7,d7 a decision of a financial agency adjudication under section #eed of title #e1 ,united ,states ,code1 or any similar statutory provision2 7,e7 internal guidance directed to the issuing financial agency or other agency that is not intended to have a substantial future effect on the behavior of regulated parties2 or 7,f7 internal executive branch legal advice or legal opinions addressed to executive branch officials4 #djc4 ,regulatory ,efficiency1 ,verification1 ,itemization1 and ,enhanced ,workflow ,section #bbbb of the ,economic ,growth and ,regulatory ,paperwork ,reduction ,act of #aiif 7#ab ,u4,s4,c4 #ccaa7 is amended-- 7#a7 by striking appropriate ,federal banking agency each place such term appears and inserting ,federal financial institutions regulatory agency2 7#b7 by striking appropriate ,federal banking agencies and inserting ,federal financial institutions regulatory agencies2 7#c7 in subsection 7a7-- 7,a7 by striking represented on the ,council2 and 7,b7 by striking once every #aj years and inserting once every #h years2 7#d7 in subsection 7b7-- 7,a7 by redesignating paragraphs 7#a7 and 7#b7 as subparagraphs 7,a7 and 7,b71 respectively 7and adjusting the margins accordingly72 7,b7 by striking ,in conducting and inserting the following3 7#a7 ,solicitation of public comment ,in conducting 2 and 7,c7 by adding at the end the following3 7#b7 ,internal review of cumulative impact ,each ,federal financial institutions regulatory agency shall conduct an internal review of the cumulative impact of regulations issued by the ,federal financial institutions regulatory agency that-- 7,a7 assesses the effects of such regulations on consumers' access to financial products and services2 7,b7 assesses the effects of such regulations on the availability of financial products and services to financial and nonfinancial firms2 7,c7 assesses the impact of such regulations on credit availability and financial market liquidity in ,united ,states financial markets2 7,d7 assesses the balance of benefits and costs of such regulations with respect to the safety and soundness of the ,united ,states financial system and overall economic activity in the ,united ,states2 7,e7 to the extent practicable1 quantifies the direct and indirect economic costs imposed by such regulations2 and 7,f7 includes recommendations to streamline or eliminate duplicative1 outdated1 and unnecessarily burdensome regulations4 2 7#e7 in subsection 7c7-- 7,a7 by striking subsection 7b77#b7 and inserting subsection 7b77#a77;,b71 and the internal review under subsection 7b77#b712 and 7,b7 by striking once every #aj years and inserting once every #h years2 7#f7 in subsection 7e7-- 7,a7 in paragraph 7#a71 by striking and at the end2 7,b7 by redesignating paragraph 7#b7 as paragraph 7#c72 7,c7 by inserting after paragraph 7#a7 the following3 7#b7 a summary of the findings and determinations of each ,federal financial institutions regulatory agency of the internal review conducted by the ,federal financial institutions regulatory agency under subsection 7b77#b72 and 2 and 7,d7 in paragraph 7#c71 as so redesignated1 by striking the regulatory burdens associated with such issues by regulation and inserting the regulatory burdens associated with the issues identified by public comments received by the ,council and the ,federal financial institutions regulatory agencies1 as well as the regulatory burdens identified by each ,federal financial institutions regulatory agency through the internal reviews conducted under subsection 7b77#b71 by regulation2 and 7#g7 by adding at the end the following3 7f7 ,federal financial institutions regulatory agency defined ,the term ,federal financial institutions regulatory agency has the meaning given that term in section #ajjc of the ,federal ,financial ,institutions ,examination ,council ,act of #aigh 7#ab ,u4,s4,c4 #ccjb74 4 #djd4 ,american ,financial ,institution ,regulatory ,sovereignty and ,transparency 7a7 ,annual reporting on interactions between ,federal banking supervisory agencies and global financial regulatory or supervisory forums 7#a7 ,board of ,governors of the ,federal ,reserve ,system ,the seventh undesignated paragraph of section #aj of the ,federal ,reserve ,act 7#ab ,u4,s4,c4 #bdg7 is amended-- 7,a7 by striking ,the ,board and inserting the following3 7#g7 ,annual report 7,a7 ,in general ,the ,board 2 7,b7 by striking the second sentence2 and 7,c7 by adding at the end the following3 7,b7 ,interactions with global financial regulatory or supervisory forums ,the report required under subparagraph 7,a7 shall include a description of the ,board's interactions with global financial regulatory or supervisory forums1 including-- 7i7 a description of the financial regulatory or supervisory standard-setting issues under discussion at the global financial regulatory or supervisory forums during the period covered by the report2 7ii7 a description of the rationale1 objectives1 and potential effects that rules proposed1 rules under consideration1 final rules adopted1 guidance proposed1 guidance under consideration1 final guidance adopted1 or any other similar actions discussed at the global financial regulatory or supervisory forums could have1 including an economic impact analysis on whether the expected costs would be at least offset by the expected benefits related to economic1 national security1 financial stability1 or other national interests2 7iii7 a description of the positions taken by representatives of the ,board at the global financial regulatory or supervisory forums during the period covered by the report2 and 7iv7 a description of the efforts by the ,board to increase transparency at global financial regulatory or supervisory forums during the period covered by the report4 7,c7 ,global financial regulatory or supervisory forum defined 7i7 ,in general ,in this paragraph1 the term global financial regulatory or supervisory forum means any association or union of nations through or by which two or more foreign authorities engage in some aspect of their conduct of international affairs regarding financial supervision and regulation1 including-- 7,i7 the ,bank for ,international ,settlements2 7,,ii7 the ,basel ,committee on ,banking ,supervision2 7,,iii7 the ,financial ,stability ,board2 7,,iv7 the ,international ,association of ,insurance ,supervisors2 and 7,v7 the ,network of ,central ,banks and ,supervisors for ,greening the ,financial ,system4 7ii7 ,exception ,the term global financial regulatory or supervisory forum does not include-- 7,i7 international financial institutions1 as defined in section #agja7;c77#b7 of the ,international ,financial ,institutions ,act 7#bb ,u4,s4,c4 #bfbr7c77#b772 or 7,,ii7 any international organization with respect to which the ,board participates pursuant to a treaty to which the ,united ,states is a party4 4 7#b7 ,office of the ,comptroller of the ,currency 7,a7 ,in general ,the second section #ccc of the ,revised ,statutes of the ,united ,states 7#ab ,u4,s4,c4 #ad2 relating to an annual report7 is amended to read as follows3 #ccc4 ,report of ,comptroller 7a7 ,in general ,the ,comptroller of the ,currency shall make an annual report to ,congress4 7b7 ,interactions with global financial regulatory or supervisory forums ,the report required under subsection 7a7 shall include a description of the ,comptroller's interactions with global financial regulatory or supervisory forums1 including-- 7#a7 a description of the financial regulatory or supervisory standard-setting issues under discussion at the global financial regulatory or supervisory forums during the period covered by the report2 7#b7 a description of the rationale1 objectives1 and potential effects that rules proposed1 rules under consideration1 final rules adopted1 guidance proposed1 guidance under consideration1 final guidance adopted1 or any other similar actions discussed at the global financial regulatory or supervisory forums could have1 including an economic impact analysis on whether the expected costs would be at least offset by the expected benefits related to economic1 national security1 financial stability1 or other national interests2 and 7#c7 a description of the positions taken by representatives of the ,comptroller at the global financial regulatory or supervisory forums during the period covered by the report2 and 7#d7 a description of the efforts by the ,comptroller to increase transparency at global financial regulatory or supervisory forums during the period covered by the report4 7c7 ,global financial regulatory or supervisory forum defined 7#a7 ,in general ,in this section1 the term global financial regulatory or supervisory forum means any association or union of nations through or by which two or more foreign authorities engage in some aspect of their conduct of international affairs regarding financial supervision and regulation1 including-- 7,a7 the ,bank for ,international ,settlements2 7,b7 the ,basel ,committee on ,banking ,supervision2 7,c7 the ,financial ,stability ,board2 7,d7 the ,international ,association of ,insurance ,supervisors2 and 7,e7 the ,network of ,central ,banks and ,supervisors for ,greening the ,financial ,system4 7#b7 ,exception ,the term global financial regulatory or supervisory forum does not include-- 7,a7 international financial institutions1 as defined in section #agja7;c77#b7 of the ,international ,financial ,institutions ,act 7#bb ,u4,s4,c4 #bfbr7c77#b772 or 7,b7 any international organization with respect to which the ,comptroller participates pursuant to a treaty to which the ,united ,states is a party4 4 7,b7 ,technical correction ,chapter nine of title ,,vii of the ,revised ,statutes of the ,united ,states is amended-- 7i7 by redesignating the first section #ccc 7#ab ,u4,s4,c4 #ad;a2 relating to data standards7 as section #ccb2 7ii7 by moving such section so as to appear after section #cca2 and 7iii7 in the table of contents of such chapter1 by amending the item relating to section #ccb to read as follows3 #ccb4 ,data standards2 open data publication4 4 7#c7 ,federal ,deposit ,insurance ,corporation ,section #ag7;a7 of the ,federal ,deposit ,insurance ,act 7#ab ,u4,s4,c4 #ahbg7;a77 is amended by striking paragraph 7#c7 and inserting the following3 7#c7 ,interactions with global financial regulatory or supervisory forums ,the report required under paragraph 7#a7 shall include a description of the ,corporation's interactions with global financial regulatory or supervisory forums1 including-- 7,a7 a description of the financial regulatory or supervisory standard-setting issues under discussion at the global financial regulatory or supervisory forums during the period covered by the report2 7,b7 a description of the rationale1 objectives1 and potential effects that rules proposed1 rules under consideration1 final rules adopted1 guidance proposed1 guidance under consideration1 final guidance adopted1 or any other similar actions discussed at the global financial regulatory or supervisory forums could have1 including an economic impact analysis on whether the expected costs would be at least offset by the expected benefits related to economic1 national security1 financial stability1 or other national interests2 7,c7 a description of the positions taken by representatives of the ,corporation at the global financial regulatory or supervisory forums during the period covered by the report2 and 7,d7 a description of the efforts by the ,corporation to increase transparency at global financial regulatory or supervisory forums during the period covered by the report4 7#d7 ,global financial regulatory or supervisory forum defined 7,a7 ,in general ,in this subsection1 the term global financial regulatory or supervisory forum means any association or union of nations through or by which two or more foreign authorities engage in some aspect of their conduct of international affairs regarding financial supervision and regulation1 including-- 7i7 the ,bank for ,international ,settlements2 7ii7 the ,basel ,committee on ,banking ,supervision2 7iii7 the ,financial ,stability ,board2 7iv7 the ,international ,association of ,insurance ,supervisors2 and 7v7 the ,network of ,central ,banks and ,supervisors for ,greening the ,financial ,system4 7,b7 ,exception ,the term global financial regulatory or supervisory forum does not include-- 7i7 international financial institutions1 as defined in section #agja7;c77#b7 of the ,international ,financial ,institutions ,act 7#bb ,u4,s4,c4 #bfbr7c77#b772 or 7ii7 any international organization with respect to which the ,corporation participates pursuant to a treaty to which the ,united ,states is a party4 4 7b7 ,biannual congressional testimony on interactions with global financial regulatory or supervisory forums ,paragraph 7#ab7 of section #aj of the ,federal ,reserve ,act 7#ab ,u4,s4,c4 #bdg;b7 is amended by inserting before the period at the end the following3 and with respect to the conduct of interactions at global financial regulatory or supervisory forums 7as defined in paragraph 7#g77;,c774 ,v ,strengthening ,local ,bank ,funding #eja4 ,bringing the ,discount ,window into the #bast ,century ,section #aj of the ,federal ,reserve ,act 7#ab ,u4,s4,c4 #bda et seq47 is amended by inserting after paragraph 7#aj7 the following3 7#aa7 ,review of discount window operations 7,a7 ,in general ,not later than #fj days after the date of enactment of this paragraph1 the ,board of ,governors shall commence a review of the discount window lending programs of the ,federal reserve banks 7the discount window71 and shall complete such review not later than #bdj days after the date of enactment of this paragraph4 7,b7 ,contents ,the review required by subparagraph 7,a7 shall include a consideration of-- 7i7 the effectiveness of the discount window in providing liquidity to financial institutions1 including in times of financial stress2 7ii7 whether the technology infrastructure1 including means of communications1 are sufficient to support the timely provision of liquidity1 including in times of financial stress2 7iii7 the effectiveness of cybersecurity measures implemented with respect to discount window operations2 7iv7 the effectiveness of communications between ,federal reserve banks1 financial institutions1 the ,board of ,governors1 the ,federal ,deposit ,insurance ,corporation1 the ,comptroller of the ,currency1 and the ,secretary of the ,treasury regarding discount window operations2 7v7 the effectiveness of the ,board of ,governors in providing oversight of the discount window and in ensuring consistent access to the discount window across the ,federal ,reserve ,system2 7vi7 how the discount window interacts with other providers of liquidity1 including the ,federal ,home ,loan ,banks1 during both normal operations and times of financial distress2 7vii7 the effectiveness of existing discount window operating hours and whether such hours should be expanded1 taking into account the interaction between discount window operating hours and the operating hours of payment systems of the ,federal reserve banks1 such as the ,fedwire ,funds ,service and ,fed,now ,service2 7viii7 the impact of mobile banking and instant communications technology on depositor behavior and liquidity risk posed to financial institutions1 including how the discount window can-- 7,i7 help financial institutions better respond to rapid liquidity shortfalls2 and 7,,ii7 prevent broader financial instability2 and 7ix7 the effectiveness of the discount window in light of the stigma associated with its usage1 ways to reduce such stigma1 and ways to improve access1 operational efficiency1 transparency1 and timeliness of the process for financial institutions seeking advances1 including on the pricing and other terms of such advances4 7,c7 ,remediation plan ,after the ,board of ,governors completes the review required by subparagraph 7,a71 the ,board of ,governors1 in consultation with the ,federal reserve banks1 shall-- 7i7 identify deficiencies with the discount window and areas for enhancing discount window effectiveness2 and 7ii7 develop a written plan to remediate the identified deficiencies and implement the identified enhancements1 which shall include-- 7,i7 an identification of actions that will be taken to enhance discount window effectiveness and remediate identified deficiencies2 7,,ii7 timelines and milestones for implementing the plan and measures to demonstrate how the implemented improvements will be maintained on an ongoing basis2 and 7,,iii7 measures of managing and controlling any deficiencies and current operations until the plan is implemented in full4 7,d7 ,report to ,congress on review and plan 7i7 ,in general ,not later than #cfe days after the date of enactment of this paragraph1 the ,board of ,governors shall submit a report to the ,committee on ,financial ,services of the ,house of ,representatives and the ,committee on ,banking1 ,housing1 and ,urban ,affairs of the ,senate containing-- 7,i7 the findings of the review required by subparagraph 7,a72 and 7,,ii7 the remediation plan required by subparagraph 7,c74 7ii7 ,consultation ,before submitting the report required by clause 7i71 the ,board of ,governors shall-- 7,i7 provide a copy of the proposed report to the ,comptroller of the ,currency1 the ,federal ,deposit ,insurance ,corporation1 and the ,secretary of the ,treasury2 and 7,,ii7 provide the ,comptroller of the ,currency1 the ,federal ,deposit ,insurance ,corporation1 and the ,secretary of the ,treasury with an opportunity to provide feedback on the report4 7iii7 ,testimony ,the ,chairman of the ,board of ,governors shall1 at the semi-annual hearing required under section #b;,b1 testify with respect to the contents of the report required under this subparagraph4 7,e7 ,annual reports to ,congress 7i7 ,reports by the ,board ,the ,board of ,governors shall submit an annual report to the ,committee on ,financial ,services of the ,house of ,representatives and the ,committee on ,banking1 ,housing1 and ,urban ,affairs of the ,senate containing a review of the effectiveness of discount window operations and a progress report on the actions taken to implement the identified enhancements described in subparagraph 7,c74 7ii7 ,reports by the ,inspector ,general ,the ,inspector ,general of the ,board of ,governors of the ,federal ,reserve ,system and the ,bureau of ,consumer ,financial ,protection shall submit an annual report to the ,committee on ,financial ,services of the ,house of ,representatives and the ,committee on ,banking1 ,housing1 and ,urban ,affairs of the ,senate containing a report on the progress of the ,board of ,governors in implementing the remediation plan required by subparagraph 7,c74 7,f7 ,confidential report information ,any report required under this paragraph may contain a confidential annex containing information that1 if made public1 could-- 7i7 impact monetary policy1 financial stability1 or cybersecurity2 or 7ii7 significantly endanger the safety and soundness of any financial institution4 7,g7 ,repeal ,this paragraph shall be repealed on the date on which the ,board of ,governors notifies the ,congress and publishes on a public website of the ,board of ,governors that the remediation plan required under subparagraph 7,c7 has been fully implemented4 4 #ejb4 ,keeping ,deposits ,local 7a7 ,amount of reciprocal deposits that are not considered ,to be funds obtained by or through a deposit broker ,section #bi7;i7 of the ,federal ,deposit ,insurance ,act 7#ab ,u4,s4,c4 #ahca;f7i77 is amended by striking paragraph 7#a7 and inserting the following3 7#a7 ,in general ,the sum of the following amounts of reciprocal deposits of an agent institution shall not be considered to be funds obtained1 directly or indirectly1 by or through a deposit broker3 7,a7 ,an amount equal to #ej percent of the portion of the total liabilities of the agent institution that is less than or equal to #a1jjj1jjj1jjj4 7,b7 ,an amount equal to #dj percent of the portion1 if any1 of the total liabilities of the agent institution that is greater than #a1jjj1jjj1jjj1 but less than or equal to #aj1jjj1jjj1jjj4 7,c7 ,an amount equal to #cj percent of the portion1 if any1 of the total liabilities of the agent institution that is greater than #aj1jjj1jjj1jjj1 but less than or equal to #bej1jjj1jjj1jjj4 4 7b7 ,definition of ,agent ,institution ,section #bi7;i7 of the ,federal ,deposit ,insurance ,act 7#ab ,u4,s4,c4 #ahca;f7i77 is amended-- 7#a7 in paragraph 7#b77;,a7-- 7,a7 in clause 7i71 by striking subclause 7,i7 and inserting the following3 7,i7 when most recently examined under section #aj7;d7 was assigned a ,,camels rating of #a1 #b1 or #c under the ,uniform ,financial ,institutions ,rating ,system 7or an equivalent rating under a comparable rating system72 and 2 7,b7 by redesignating clauses 7ii7 and 7iii7 as clauses 7iii7 and 7iv71 respectively2 and 7,c7 by inserting after clause 7i7 the following3 7ii7 has not yet been examined under section #aj7;d7 and the deposits of which first became insured under this ,act during the current calendar year or during the immediately preceding calendar year2 2 and 7#b7 by adding at the end the following3 7#c7 ,reservation of authority ,if an insured depository institution ceases to be an agent institution because it no longer satisfies any of the criteria in paragraph 7#b77;,a71 the ,corporation may1 on a case-by-case basis and upon application1 provide a waiver to permit the institution to continue to consider some or all of the deposits previously subject to the exception under paragraph 7#a7 as continuing to be subject to the exception under paragraph 7#a71 for a specific or indefinite period of time1 if the ,corporation determines that failure to grant such a waiver would negatively impact the safety and soundness of the insured depository institution4 4 7c7 ,reciprocal deposits study 7#a7 ,in general ,the ,federal ,deposit ,insurance ,corporation1 in consultation with the ,board of ,governors of the ,federal ,reserve ,system1 shall carry out a study on reciprocal deposits4 7#b7 ,contents ,the study required under paragraph 7#a7 shall include-- 7,a7 an analysis of how reciprocal deposits have performed since #bjah1 which shall include-- 7i7 the use of quantitative and qualitative data2 7ii7 a breakdown of the usage of reciprocal deposits by size of insured depository institution2 7iii7 the usage of reciprocal deposits during periods of stress2 and 7iv7 an analysis1 to the extent practicable1 of end-user depositors1 such as municipalities1 businesses1 and non-profit organizations1 that drive demand for reciprocal products2 7,b7 an analysis1 to the extent practicable1 of how reciprocal deposits compare to other deposit arrangements2 and 7,c7 an analysis of the benefits and potential risks of reciprocal deposits4 7#c7 ,report ,not later than #f months after the date of enactment of this ,act1 the ,federal ,deposit ,insurance ,corporation shall issue a report to the ,committee on ,financial ,services of the ,house of ,representatives and the ,committee on ,banking1 ,housing1 and ,urban ,affairs of the ,senate containing all findings and determinations made in carrying out the study required under paragraph 7#a74 #ejc4 ,community ,bank ,deposit ,access 7a7 ,in general ,section #bi of the ,federal ,deposit ,insurance ,act 7#ab ,u4,s4,c4 #ahca;f7 is amended by adding at the end the following3 7j7 ,limited exception for custodial deposits 7#a7 ,in general ,custodial deposits of an eligible institution shall not be considered to be funds obtained1 directly or indirectly1 by or through a deposit broker to the extent that the total amount of such custodial deposits does not exceed an amount equal to #bj percent of the total liabilities of the eligible institution4 7#b7 ,reservation of authority ,if an insured depository institution ceases to be an eligible institution because it no longer satisfies any of the criteria in paragraph 7#c77;,b71 the ,corporation may1 on a case-by-case basis and upon application1 provide a waiver to permit the institution to continue to be treated as an eligible institution for purposes of paragraph 7#a71 for a specific or indefinite period of time1 if the ,corporation determines that failure to grant such a waiver would negatively impact the safety and soundness of the insured depository institution4 7#c7 ,definitions ,in this subsection3 7,a7 ,custodial deposit ,the term custodial deposit means a deposit that is not deposited at an insured depository institution in return for fees paid by the insured depository institution pursuant to an agreement with a third party and that would otherwise be considered to be obtained1 directly or indirectly1 by or through a deposit broker1 if the deposit is deposited at #a or more insured depository institutions1 for the purpose of providing or maintaining deposit insurance for the benefit of a third party1 by or through any of the following1 each acting in a formal custodial or fiduciary capacity for the benefit of a third party3 7i7 ,an insured depository institution serving as agent1 trustee1 or custodian4 7ii7 ,a trust entity controlled by an insured depository institution serving as agent1 trustee1 or custodian4 7iii7 ,a ,state-chartered trust company serving as agent1 trustee1 or custodian4 7iv7 ,a plan administrator or investment advisor1 acting in a formal custodial or fiduciary capacity for the benefit of a plan4 7,b7 ,eligible institution ,the term eligible institution means an insured depository institution that accepts custodial deposits1 if the insured depository institution has less than #aj1jjj1jjj1jjj in total assets as reported on the consolidated report of condition and income as reported quarterly to the appropriate ,federal banking agency and-- 7i7 7,i7 when most recently examined under section #aj7;d7 was assigned a composite rating of #a1 #b1 or #c under the ,uniform ,financial ,institutions ,rating ,system 7or an equivalent rating under a comparable rating system72 and 7,,ii7 is well capitalized2 7ii7 has not yet been examined under section #aj7;d7 and the deposits of which first became insured under this ,act during the current calendar year or during the immediately preceding calendar year2 or 7iii7 has obtained a waiver pursuant to subsection 7c74 7,c7 ,plan ,the term plan has the meaning given the term in section #c of the ,employee ,retirement ,income ,security ,act of #aigd 7#bi ,u4,s4,c4 #ajjb74 7,d7 ,plan administrator ,the term plan administrator has the meaning given the term administrator in section #c of the ,employee ,retirement ,income ,security ,act of #aigd 7#bi ,u4,s4,c4 #ajjb74 7,e7 ,well capitalized ,the term well capitalized has the meaning given the term in section #ch7;b74 4 7b7 ,interest rate restriction ,section #bi of the ,federal ,deposit ,insurance ,act 7#ab ,u4,s4,c4 #ahca;f71 as amended by subsection 7a71 is further amended by adding at the end the following3 7k7 ,restriction on interest rate paid on certain custodial deposits 7#a7 ,definitions ,in this subsection-- 7,a7 the terms custodial deposit1 eligible institution1 and well capitalized have the meanings given those terms in subsection 7j72 and 7,b7 the term covered insured depository institution means an insured depository institution that while acting as an eligible institution under subsection 7j71 accepts custodial deposits while not well capitalized4 7#b7 ,prohibition ,a covered insured depository institution may not pay a rate of interest on custodial deposits that are accepted while not well capitalized that1 at the time the funds or custodial deposits are accepted1 significantly exceeds the limit set forth in paragraph 7#c74 7#c7 ,limit on interest rates ,the limit on the rate of interest referred to in paragraph 7#b7 shall be not greater than-- 7,a7 the rate paid on deposits of similar maturity in the normal market area of the covered insured depository institution for deposits accepted in the normal market area of the covered insured depository institution2 or 7,b7 the national rate paid on deposits of comparable maturity1 as established by the ,corporation1 for deposits accepted outside the normal market area of the covered insured depository institution4 4 ,,vi ,promoting ,bank ,competition and ,merger ,clarity #fja4 ,bank ,competition ,modernization 7a7 ,in general ,section #ah7;c7 of the ,federal ,deposit ,insurance ,act 7#ab ,u4,s4,c4 #ahbh7;c771 as amended by section #fjd7;c71 is further amended-- 7#a7 in paragraph 7#d77;,c7-- 7,a7 in clause 7i71 by striking or at the end2 7,b7 in clause 7ii71 by striking the period at the end and inserting 2 or2 and 7,c7 by adding at the end the following3 7iii7 the proposed merger transaction would result in an entity with less than #aj1jjj1jjj1jjj in assets4 2 and 7#b7 by adding at the end the following3 7#af7 ,for merger transactions resulting in institutions with less than #aj1jjj1jjj1jjj in assets 7,a7 ,in general ,notwithstanding paragraph 7#e71 if a proposed merger transaction would result in an institution with less than #aj1jjj1jjj1jjj in assets1 then the responsible agency shall not consider whether such merger transaction would-- 7i7 result in a monopoly1 or would be in furtherance of any combination or conspiracy to monopolize or to attempt to monopolize the business of banking in any part of the ,united ,states2 and 7ii7 have the effect in any section of the country of substantially lessening competition1 tending to create a monopoly1 or in any other manner restraining trade4 7,b7 ,threshold adjustment 7i7 ,in general ,at the end of each year for which the nominal gross domestic product of the ,united ,states increases 7a covered year71 the ,corporation shall adjust the dollar figures described in subparagraph 7,a7 and paragraph 7#d77;,c77iii7 by a percentage equal to the percentage increase 7if any7 between-- 7,i7 the nominal gross domestic product of the ,united ,states for the year1 during the preceding #e years1 with respect to which the nominal gross domestic product of the ,united ,states was the highest2 and 7,,ii7 the nominal gross domestic product of the ,united ,states for the covered year4 7ii7 ,determination of ,,gdp ,in this paragraph1 the ,corporation shall use nominal gross domestic product statistics determined by the ,bureau of ,economic ,analysis4 4 7b7 ,for bank holding companies ,section #c7;c7 of the ,bank ,holding ,company ,act of #aief 7#ab ,u4,s4,c4 #ahdb7;c77 is amended by adding at the end the following3 7#h7 ,for proposed transactions resulting in companies with less than #aj1jjj1jjj1jjj in assets 7,a7 ,in general ,notwithstanding paragraph 7#a71 if a proposed acquisition1 merger1 or consolidation under this section would result in a company with less than #aj1jjj1jjj1jjj in assets1 then the ,board shall not consider whether such acquisition1 merger1 or consolidation would-- 7i7 result in a monopoly1 or would be in furtherance of any combination or conspiracy to monopolize or to attempt to monopolize the business of banking in any part of the ,united ,states2 and 7ii7 have the effect in any section of the country of substantially lessening competition1 tending to create a monopoly1 or in any other manner restraining trade4 7,b7 ,threshold adjustment 7i7 ,in general ,at the end of each year for which the nominal gross domestic product of the ,united ,states increases 7a covered year71 the ,board shall adjust the dollar figure described in subparagraph 7,a7 by a percentage equal to the percentage increase 7if any7 between-- 7,i7 the nominal gross domestic product of the ,united ,states for the year1 during the preceding #e years1 with respect to which the nominal gross domestic product of the ,united ,states was the highest2 and 7,,ii7 the nominal gross domestic product of the ,united ,states for the covered year4 7ii7 ,determination of ,,gdp ,in this paragraph1 the ,board shall use nominal gross domestic product statistics determined by the ,bureau of ,economic ,analysis4 4 7c7 ,for savings and loan holding companies ,section #aj7;e7 of the ,home ,owners' ,loan ,act 7#ab ,u4,s4,c4 #adfg;a7e771 as amended by section #ajc7;b71 is further amended by adding at the end the following3 7#aj7 ,for proposed transactions resulting in companies with less than #aj1jjj1jjj1jjj in assets 7,a7 ,in general ,notwithstanding subparagraphs 7,a7 and 7,b7 of paragraph 7#b71 if a proposed transaction under this section would result in a company with less than #aj1jjj1jjj1jjj in assets1 then the ,board shall not consider whether the transaction would-- 7i7 result in a monopoly1 or would be in furtherance of any combination or conspiracy to monopolize or to attempt to monopolize the savings and loan business in any part of the ,united ,states2 and 7ii7 have the effect in any section of the country of substantially lessening competition1 tending to create a monopoly1 or in any other manner restraining trade4 7,b7 ,threshold adjustment 7i7 ,in general ,at the end of each year for which the nominal gross domestic product of the ,united ,states increases 7a covered year71 the ,board shall adjust the dollar figure described in subparagraph 7,a7 by a percentage equal to the percentage increase 7if any7 between-- 7,i7 the nominal gross domestic product of the ,united ,states for the year1 during the preceding #e years1 with respect to which the nominal gross domestic product of the ,united ,states was the highest2 and 7,,ii7 the nominal gross domestic product of the ,united ,states for the covered year4 7ii7 ,determination of ,,gdp ,in this paragraph1 the ,board shall use nominal gross domestic product statistics determined by the ,bureau of ,economic ,analysis4 4 #fjb4 ,merger ,agreement ,approvals ,clarity and ,predictability 7a7 ,study ,the ,comptroller ,general of the ,united ,states shall carry out a study on the use of commitments1 conditions1 and other aspects of merger review procedures by ,federal depository institution regulatory agencies in connection with insured depository institution merger applications4 ,the study shall-- 7#a7 include an evaluation of relevant quantifiable metrics2 7#b7 review the extent to which the use of commitments and conditions has aligned with statutory requirements1 including a review of whether the use of commitments and conditions has been influenced by extrastatutory issues or considerations2 7#c7 consider the benefits and risks of utilizing different merger review approaches and procedures in compliance with the law2 and 7#d7 include an evaluation of the impact of such merger review procedures and resulting approved mergers on safety and soundness1 financial stability1 competition1 and the availability of financial products and services offered by insured depository institutions4 7b7 ,report ,not later than #a year after the date of enactment of this ,act1 the ,comptroller ,general shall issue a report to the ,committee on ,financial ,services of the ,house of ,representatives and the ,committee on ,banking1 ,housing1 and ,urban ,affairs of the ,senate containing all findings and determinations made in carrying out the study required under subsection 7a74 7c7 ,definitions ,in this section3 7#a7 ,application ,the term application means an application1 notice1 or other similar request for permission submitted to a ,federal depository institution regulatory agency4 7#b7 ,federal depository institution regulatory agency ,the term ,federal depository institution regulatory agency means the ,board of ,governors of the ,federal ,reserve ,system1 the ,comptroller of the ,currency1 the ,federal ,deposit ,insurance ,corporation1 and the ,national ,credit ,union ,administration ,board4 7#c7 ,insured depository institution ,the term insured depository institution-- 7,a7 has the meaning given that term in section #c of the ,federal ,deposit ,insurance ,act 7#ab ,u4,s4,c4 #ahac72 and 7,b7 means an insured credit union1 as defined in section #aja of the ,federal ,credit ,union ,act 7#ab ,u4,s4,c4 #ageb74 7#d7 ,insured depository institution merger application ,the term insured depository institution merger application means an application with respect to the acquisition of an insured depository institution1 its equity interests1 its assets1 or its deposits under-- 7,a7 section #aj7;e7 of the ,home ,owners' ,loan ,act 7#ab ,u4,s4,c4 #adfg;a7e772 7,b7 section #bje7;b7 of the ,federal ,credit ,union ,act 7#ab ,u4,s4,c4 #aghe7;b772 7,c7 section #g7;j7 of the ,federal ,deposit ,insurance ,act 7#ab ,u4,s4,c4 #ahag7;j772 7,d7 section #ah7;c77#b7 of the ,federal ,deposit ,insurance ,act 7#ab ,u4,s4,c4 #ahbh7;c77#b772 7,e7 section #c of the ,bank ,holding ,company ,act of #aief 7#ab ,u4,s4,c4 #ahdb72 and 7,f7 section #d of the ,bank ,holding ,company ,act of #aief 7#ab ,u4,s4,c4 #ahdc74 #fjc4 ,merger ,process ,review 7a7 ,review ,not later than #a year after the date of enactment of this ,act1 and every #c years thereafter1 the ,inspector ,general of each ,federal depository institution regulatory agency shall review the ,federal depository institution regulatory agency's merger review procedures1 including record of timeliness and efficiency in reviewing and acting upon insured depository institution merger applications4 ,the review shall-- 7#a7 include an evaluation of relevant quantifiable metrics1 including mean and median application processing times2 7#b7 identify sources of delay that may hinder the timely consummation of proposals that meet the relevant statutory factors2 7#c7 consider the benefits and risks of utilizing different merger review approaches and procedures in compliance with the law2 7#d7 include an evaluation of the impact of such merger review procedures and resulting approved mergers on safety and soundness1 financial stability1 competition1 and the availability of financial products and services offered by insured depository institutions2 and 7#e7 include specific recommendations to improve the merger review process1 including timeliness and efficiency of application processing1 consistent with the ,federal depository institution regulatory agency's statutory responsibilities4 7b7 ,report ,each ,inspector ,general described under subsection 7a7 shall1 at the conclusion of each review required under subsection 7a71 issue a report to the ,committee on ,financial ,services of the ,house of ,representatives and the ,committee on ,banking1 ,housing1 and ,urban ,affairs of the ,senate containing all findings and determinations made in carrying out the review1 and publish such report online4 7c7 ,agency response ,in response to each report issued under subsection 7a71 the appropriate ,federal depository institution regulatory agency shall submit to the ,committee on ,financial ,services of the ,house of ,representatives and the ,committee on ,banking1 ,housing1 and ,urban ,affairs of the ,senate and publish online a written response1 including a plan to implement the recommendations in the report1 to the extent such implementation is appropriate4 7d7 ,definitions ,in this section3 7#a7 ,application ,the term application means an application1 notice1 or other similar request for permission submitted to a ,federal depository institution regulatory agency4 7#b7 ,federal depository institution regulatory agency ,the term ,federal depository institution regulatory agency means the ,board of ,governors of the ,federal ,reserve ,system1 the ,comptroller of the ,currency1 the ,federal ,deposit ,insurance ,corporation1 and the ,national ,credit ,union ,administration ,board4 7#c7 ,insured depository institution ,the term insured depository institution-- 7,a7 has the meaning given that term in section #c of the ,federal ,deposit ,insurance ,act 7#ab ,u4,s4,c4 #ahac72 and 7,b7 means an insured credit union1 as defined in section #aja of the ,federal ,credit ,union ,act 7#ab ,u4,s4,c4 #ageb74 7#d7 ,insured depository institution merger application ,the term insured depository institution merger application means an application with respect to the acquisition of an insured depository institution1 its equity interests1 its assets1 or its deposits under-- 7,a7 section #aj7;e7 of the ,home ,owners' ,loan ,act 7#ab ,u4,s4,c4 #adfg;a7e772 7,b7 section #bje7;b7 of the ,federal ,credit ,union ,act 7#ab ,u4,s4,c4 #aghe7;b772 7,c7 section #g7;j7 of the ,federal ,deposit ,insurance ,act 7#ab ,u4,s4,c4 #ahag7;j772 7,d7 section #ah7;c77#b7 of the ,federal ,deposit ,insurance ,act 7#ab ,u4,s4,c4 #ahbh7;c77#b772 7,e7 section #c of the ,bank ,holding ,company ,act of #aief 7#ab ,u4,s4,c4 #ahdb72 and 7,f7 section #d of the ,bank ,holding ,company ,act of #aief 7#ab ,u4,s4,c4 #ahdc74 #fjd4 ,bank ,failure ,prevention 7a7 ,bank holding companies ,section #c7;b77#a7 of the ,bank ,holding ,company ,act of #aief 7#ab ,u4,s4,c4 #ahdb7;b77#a77 is amended-- 7#a7 by striking ,upon receiving and inserting the following3 7,a7 ,in general ,upon receiving 2 7#b7 by striking required and inserting acquired2 7#c7 by striking ,in the event of the failure of the ,board to act on any application for approval under this section within the ninety-one-day period which begins on the date of submission to the ,board of the complete record on that application1 the application shall be deemed to have been granted42 and 7#d7 by adding at the end the following3 7,b7 ,complete record on an application 7i7 ,notice to applicant ,not later than #cj days after the date on which the ,board receives an application for approval under this section1 the ,board shall transmit to the applicant a letter that either-- 7,i7 confirms the record on the application is complete2 or 7,,ii7 details all additional information that is required for the record on that application to be complete4 7ii7 ,extension of notice ,notwithstanding clause 7i71 the ,board may1 if an application is complex1 extend the #cj-;day period described under clause 7i7 for an additional #cj days4 7iii7 ,receipt of response2 deeming of complete record ,upon receipt of a response from an applicant to a notice requesting additional information described under clause 7i77,,ii71 the record on the application shall be deemed complete unless the ,board-- 7,i7 determines that the applicant's response was materially deficient2 and 7,,ii7 not later than #cj days after the date on which the ,board received the response1 provides the applicant a detailed notice describing the deficiencies4 7iv7 ,treatment of third-party information ,in determining whether the record on an application is complete1 the ,board may take into account only information provided by the applicant1 and may not base the determination of completeness on any information 7including reports1 views1 or recommendations7 provided by third parties4 7,c7 ,deadline for determination 7i7 ,in general ,notwithstanding subparagraphs 7,a7 and 7,b71 the ,board shall grant or deny an application submitted under this section not later than #abj days after the date on which the application was initially submitted to the ,board1 regardless of whether the record on such initial application was complete4 7ii7 ,failure to make a determination ,if the ,board does not grant or deny an application within the time period described under clause 7i71 such application shall be deemed to have been granted4 7iii7 ,tolling of period ,the ,board may at any time extend the deadline described under clause 7i7 at the request of the applicant1 but may not extend the deadline more than #cj days past the deadline described under clause 7i74 4 7b7 ,savings and loan holding companies ,section #aj7;e7 of the ,home ,owners' ,loan ,act 7#ab ,u4,s4,c4 #adfg;a7e77 is amended-- 7#a7 in paragraph 7#b71 by striking 1 and shall render a decision within #ij days after submission to the ,board of the complete record on the application2 7#b7 by redesignating paragraph 7#g7 as paragraph 7#i72 and 7#c7 by inserting after paragraph 7#f7 the following3 7#g7 ,complete record on an application 7,a7 ,notice to applicant ,not later than #cj days after the date on which the ,board receives an application for approval under this subsection1 the ,board shall transmit to the applicant a letter that either-- 7i7 confirms the record on the application is complete2 or 7ii7 details all additional information that is required for the record on that application to be complete4 7,b7 ,extension of notice ,notwithstanding subparagraph 7,a71 the ,board may1 if an application is complex1 extend the #cj-;day period described under subparagraph 7,a7 for an additional #cj days4 7,c7 ,receipt of response2 deeming of complete record ,upon receipt of a response from an applicant to a notice requesting additional information described under subparagraph 7,a77ii71 the record on the application shall be deemed complete unless the ,board-- 7i7 determines that the applicant's response was materially deficient2 and 7ii7 not later than #cj days after the date on which the ,board received the response1 provides the applicant a detailed notice describing the deficiencies4 7,d7 ,treatment of third-party information ,in determining whether the record on an application is complete1 the ,board may take into account only information provided by the applicant1 and may not base the determination of completeness on any information 7including reports1 views1 or recommendations7 provided by third parties4 7#h7 ,deadline for determination 7,a7 ,in general ,notwithstanding any other provision of this subsection1 the ,board shall grant or deny an application submitted under this subsection not later than #abj days after the date on which the application was initially submitted to the ,board1 regardless of whether the record on such initial application was complete4 7,b7 ,failure to make a determination ,if the ,board does not grant or deny an application within the time period described under subparagraph 7,a71 such application shall be deemed to have been granted4 7,c7 ,tolling of period ,the ,board may at any time extend the deadline described under subparagraph 7,a7 at the request of the applicant1 but may not extend the deadline more than #cj days past the deadline described under subparagraph 7,a74 4 7c7 ,insured depository institutions ,section #ah7;c7 of the ,federal ,deposit ,insurance ,act 7#ab ,u4,s4,c4 #ahbh7;c77 is amended by adding at the end the following3 7#ad7 ,complete record on an application 7,a7 ,notice to applicant ,not later than #cj days after the date on which the responsible agency receives a merger application for approval under this subsection1 the responsible agency shall transmit to the applicant a letter that either-- 7i7 confirms the record on the application is complete2 or 7ii7 details all additional information that is required for the record on that application to be complete4 7,b7 ,extension of notice ,notwithstanding subparagraph 7,a71 the responsible agency may1 if an application is unusually complex1 extend the #cj-;day period described under subparagraph 7,a7 for an additional #cj days4 7,c7 ,receipt of response2 deeming of complete record ,upon receipt of a response from an applicant to a notice requesting additional information described under subparagraph 7,a77ii71 the record on the application shall be deemed complete unless the responsible agency-- 7i7 determines that the applicant's response was materially deficient2 and 7ii7 not later than #cj days after the date on which the responsible agency received the response1 provides the applicant a detailed notice describing the deficiencies4 7,d7 ,treatment of third-party information ,in determining whether the record on an application is complete1 the responsible agency may take into account only information provided by the applicant1 and may not base the determination of completeness on any information 7including reports1 views1 or recommendations7 provided by third parties4 7#ae7 ,deadline for determination 7,a7 ,in general ,notwithstanding any other provision of this subsection1 the responsible agency shall grant or deny a merger application submitted under this subsection not later than #abj days after the date on which the application was initially submitted to the responsible agency1 regardless of whether the record on such initial application was complete4 7,b7 ,failure to make a determination ,if the responsible agency does not grant or deny an application within the time period described under subparagraph 7,a71 such application shall be deemed to have been granted4 7,c7 ,tolling of period ,the responsible agency may at any time extend the deadline described under subparagraph 7,a7 at the request of the applicant1 but may not extend the deadline more than #cj days past the deadline described under subparagraph 7,a74 4 ,,vii ,strengthening ,transparency and ,involvement in ,bank ,resolutions #gja4 ,least ,cost ,exception 7a7 ,in general ,section #ac7;c77#d7 of the ,federal ,deposit ,insurance ,act 7#ab ,u4,s4,c4 #ahbc7;c77#d77 is amended-- 7#a7 in subparagraph 7,a77ii71 by inserting except as provided in subparagraph 7,i71 before the total amount2 7#b7 in subparagraph 7,e77i71 by inserting and except as provided in subparagraph 7,i71 after appropriate12 and 7#c7 by adding at the end the following3 7,i7 ,least cost resolution exception 7i7 ,in general ,with respect to an exercise of authority by the ,corporation described in subparagraph 7,a71 the ,corporation may1 at the discretion of the ,corporation1 select an alternative method of exercising such authority that is not the least costly to the ,deposit ,insurance ,fund1 if-- 7,i7 the ,corporation determines that the selected alternative complies with the requirements of clause 7iii72 and 7,,ii7 the ,corporation and the ,board of ,governors of the ,federal ,reserve ,system1 after consultation with the ,secretary of the ,treasury1 determine that the potential additional risks to the ,deposit ,insurance ,fund of the selected alternative are outweighed by the reasonably expected benefits of limiting further concentration of the ,united ,states banking system in global systemically important banking organizations4 7ii7 ,maximum cost to the ,deposit ,insurance ,fund ,not later than #a year after the date of enactment of this subparagraph1 the ,corporation1 by rule1 shall establish criteria for determining on a case-by-case basis the maximum allowable cost against the net worth of the ,deposit ,insurance ,fund that may be utilized to account for any determination under clause 7i74 7iii7 ,requirements described ,the requirements for the selected alternative described in clause 7i7 are as follows3 7,i7 ,the selected alternative is least costly to the ,deposit ,insurance ,fund of all alternatives that do not involve a transaction with a global systemically important banking organization and that do not exceed the cost of liquidating the insured depository institution4 7,,ii7 ,the difference between the cost of the selected alternative and the cost of a covered alternative is less than or equal to the maximum cost to the ,deposit ,insurance ,fund specified pursuant to the rule adopted under clause 7ii74 7,,iii7 ,in the case of a selected alternative that involves another person purchasing assets of the insured depository institution or assuming deposit liabilities of the insured depository institution1 such person agrees to pay an assessment to the ,corporation comprised of payments-- 7aa7 made over a period to be determined by the ,corporation1 but which may not be less than #e years2 and 7bb7 in an amount that takes into account1 on a case-by-case basis1 criteria the ,corporation1 by rule1 shall establish1 including a realistic discount rate1 the aggregate amount equal to the difference calculated in subclause 7,,ii71 and any bid inconsistent with the purposes of this ,act1 with such rule to be established by the ,corporation not later than #a year after the date of enactment of this subparagraph4 7iv7 ,report to ,congress ,not later than #cj days after selecting an alternative described in clause 7i71 the ,corporation shall issue a report to the ,committee on ,financial ,services of the ,house of ,representatives and the ,committee on ,banking1 ,housing1 and ,urban ,affairs of the ,senate containing an analysis of the economic difference between the cost to the ,deposit ,insurance ,fund of the selected alternative and the cost to the ,deposit ,insurance ,fund of the least costly alternative that would have been selected absent the application of this subparagraph4 7v7 ,cost determinations ,all cost determinations required under this subparagraph shall be made in accordance with subparagraphs 7,b7 and 7,c74 7vi7 ,definitions ,in this subparagraph3 7,i7 ,covered alternative ,the term covered alternative means a method of exercising authority described in subparagraph 7,a7 that is the least costly to the ,deposit ,insurance ,fund of all such methods that involve a sale of all or substantially all assets of the insured depository institution to1 and assumption of all or substantially all deposit liabilities of the insured depository institution by1 a global systemically important banking organization4 7,,ii7 ,global systemically important banking organization ,the term global systemically important banking organization means a global systemically important ,,bhc 7as such term is defined in section #bag4djb of title #ab1 ,code of ,federal ,regulations1 or any successor thereto7 and any affiliate thereof4 4 7b7 ,rule of construction ,section #ac7;c77#d77;,h7 of the ,federal ,deposit ,insurance ,act 7#ab ,u4,s4,c4 #ahbc7;c77#d77;,h77 does not apply to the amendments made by subsection 7a74 #gjb4 ,enhancing ,bank ,resolution ,participation 7a7 ,study ,the ,comptroller of the ,currency1 the ,federal ,deposit ,insurance ,corporation1 and the ,board of the ,governors of the ,federal ,reserve ,system shall1 jointly1 carry out a study of-- 7#a7 the use by the ,comptroller of the ,currency of shelf charters1 including all conditional or preliminary shelf charter approvals granted between ,january #a1 #bjjh1 and the date of enactment of this ,act2 7#b7 the use by the ,federal ,deposit ,insurance ,corporation of the modified bidder qualification process2 7#c7 the application of the ,bank ,holding ,company ,act of #aief 7#ab ,u4,s4,c4 #ahda et seq47 and section #aj of the ,home ,owners' ,loan ,act 7#ab ,u4,s4,c4 #adfg;a7 to shelf charter proposals2 7#d7 whether shelf charters and modified bidder qualification processes were considered or used in connection with the receivership of any insured depository institution for which the ,federal ,deposit ,insurance ,corporation was appointed receiver in #bjbc2 7#e7 with respect to such receiverships1 the extent to which greater use of shelf charters and modified bidder qualification processes could have-- 7,a7 expanded the pool of participants in the acquisition of the assets or liabilities of such failed insured depository institutions2 7,b7 resulted in greater competition and diversity in market outcomes2 7,c7 protected the ,deposit ,insurance ,fund2 or 7,d7 strengthened financial stability and reduced the need for any emergency determination by the ,secretary of the ,treasury under section #ac7;c77#d77;,g7 of the ,federal ,deposit ,insurance ,act 7#ab ,u4,s4,c4 #ahbc7;c77#d77;,g77 with respect to any such receivership2 7#f7 the impact of the use of shelf charters and modified bidder qualification processes since ,january #a1 #bjjh1 including on financial stability1 the safety and soundness of affected insured depository institutions1 and the availability of financial products and services provided to consumers by such institutions2 and 7#g7 any benefits and risks of private equity ownership of banks through the use of shelf charters and modified bidder qualification processes4 7b7 ,report ,not later than #a year after the date of enactment of this ,act1 the ,comptroller of the ,currency1 the ,federal ,deposit ,insurance ,corporation1 and the ,board of the ,governors of the ,federal ,reserve ,system shall1 jointly1 submit a report to the ,committee on ,financial ,services of the ,house of ,representatives and the ,committee on ,banking1 ,housing1 and ,urban ,affairs of the ,senate containing-- 7#a7 all findings and determinations made in carrying out the study required under subsection 7a72 and 7#b7 an identification of statutory or regulatory barriers to the use and effectiveness of shelf charters and modified bidder qualification processes in the resolution of failed insured depository institutions1 including recommendations for legislative and regulatory changes4 7c7 ,definitions ,in this section3 7#a7 ,insured depository institution ,the term insured depository institution has the meaning given the term in section #c of the ,federal ,deposit ,insurance ,act 7#ab ,u4,s4,c4 #ahac74 7#b7 ,modified bidder qualification process ,the term modified bidder qualification process has the meaning given such term in the press release of the ,federal ,deposit ,insurance ,corporation titled ,,fdic ,expands ,bidder ,list for ,troubled ,institutions ,plan ,allows ,those ,without a ,bank ,charter to ,participate in the ,process published ,november #bf1 #bjjh4 7#c7 ,shelf charter ,the term shelf charter has the meaning given such term in the report issued by the ,comptroller of the ,currency titled ,activities ,permissible for ,national ,banks and ,federal ,savings ,associations1 ,cumulative published ,october #bjag4 #gjc4 ,failing ,bank ,acquisition ,fairness 7a7 ,concentration limit exceptions only available to avoid serious adverse economic or financial effects 7#a7 ,concentration limits with respect to deposits 7,a7 ,federal ,deposit ,insurance ,act ,the ,federal ,deposit ,insurance ,act 7#ab ,u4,s4,c4 #ahaa et seq47 is amended-- 7i7 in section #ah7;c77#ac7-- 7,i7 by amending subparagraph 7,b7 to read as follows3 7,b7 ,subparagraph 7,a7 shall not apply to an interstate merger transaction if-- 7i7 such interstate merger transaction involves #a or more insured depository institutions in default or in danger of default and the responsible agency determines1 based on clear and convincing evidence1 that consummation of the proposed interstate merger transaction is necessary to prevent significant economic disruption or significant adverse effects on financial stability1 and the ,corporation has not received any qualified bid from a company that is not subject to the prohibition in subparagraph 7,a72 or 7ii7 the ,corporation provides assistance under section #ac to facilitate such interstate merger transaction and the responsible agency determines1 based on clear and convincing evidence1 that consummation of the proposed interstate merger transaction is necessary to prevent significant economic disruption or significant adverse effects on financial stability1 and the ,corporation has not received any qualified bid from a company that is not subject to the prohibition in subparagraph 7,a74 2 and 7,,ii7 in subparagraph 7,c7-- 7aa7 in clause 7i71 by striking and at the end2 7bb7 in clause 7ii71 by striking the period at the end and inserting a semicolon2 and 7cc7 by adding at the end the following3 7iii7 the term qualified bid means an application1 proposed application1 or bid from a company where-- 7,i7 if applicable1 the company1 any affiliate insured depository institution1 and any affiliate depository institution holding company are well capitalized and well managed1 as of the date of the application1 proposed application1 or bid2 and 7,,ii7 upon consummation of the transaction1 the resulting insured depository institution is well capitalized2 7iv7 the term well capitalized-- 7,i7 with respect to an insured depository institution1 has the meaning given such term in section #ch7;b7 7#ab ,u4,s4,c4 #ahcao7b772 7,,ii7 with respect to a bank holding company1 has the meaning given such term in section #b7o77#a77;,b7 of the ,bank ,holding ,company ,act of #aief 7#ab ,u4,s4,c4 #ahda7o77#a77;,b772 7,,iii7 with respect to a savings and loan holding company1 has the meaning given such term in section #bch4b of title #ab1 ,code of ,federal ,regulations2 and 7,,iv7 with respect to a company that is not an insured depository institution1 bank holding company1 or savings and loan holding company1 means maintaining equity capital that the ,corporation determines is commensurate with the capital maintained by an insured depository institution that is well capitalized2 and 7v7 the term well managed has the meaning given such term in section #b7o77#i7 of the ,bank ,holding ,company ,act of #aief 7#ab ,u4,s4,c4 #ahda7o77#i774 2 and 7ii7 in section #dd1 by amending subsection 7e7 to read as follows3 7e7 ,exception for ,banks in ,default or in ,danger of ,default 7#a7 ,general exception ,the responsible agency may1 without regard to paragraph 7#a71 7#c71 7#d71 or 7#e7 of subsection 7b7 or paragraph 7#b71 7#d71 or 7#e7 of subsection 7a71 approve an application under subsection 7a77#a7 for approval of a merger transaction if-- 7,a7 the merger transaction involves #a or more banks in default or in danger of default2 or 7,b7 the ,corporation provides assistance under section #ac7;c7 to facilitate such merger transaction4 7#b7 ,concentration limit exception ,the responsible agency may1 without regard to subsection 7b77#b71 approve an application under subsection 7a77#a7 for approval of a merger transaction if-- 7,a7 the merger transaction involves #a or more banks in default or in danger of default and the responsible agency determines1 based on clear and convincing evidence1 that consummation of the proposed interstate merger transaction is necessary to prevent significant economic disruption or significant adverse effects on financial stability1 and the ,corporation has not received any qualified bid from another institution that is not subject to the prohibition in subsection 7b77#b72 or 7,b7 the ,corporation provides assistance under section #ac7;c7 to facilitate such merger transaction and the responsible agency determines1 based on clear and convincing evidence1 that consummation of the proposed interstate merger transaction is necessary to prevent significant economic disruption or significant adverse effects on financial stability1 and the ,corporation has not received any qualified bid from another institution that is not subject to the prohibition in subsection 7b77#b74 7#c7 ,qualified bid defined ,in this subsection1 the term qualified bid has the meaning given that term in section #ah7;c77#ac77;,c74 4 7,b7 ,bank ,holding ,company ,act of #aief ,the ,bank ,holding ,company ,act of #aief 7#ab ,u4,s4,c4 #ahda et seq47 is amended-- 7i7 in section #c7;d71 by amending paragraph 7#e7 to read as follows3 7#e7 ,exception for banks in default or in danger of default 7,a7 ,general exception ,the ,board may1 without regard to subparagraph 7,b7 or 7,d7 of paragraph 7#a7 or paragraph 7#c71 approve an application pursuant to paragraph 7#a77;,a7 if-- 7i7 the application is for an acquisition of #a or more banks in default or in danger of default2 or 7ii7 the application is for an acquisition with respect to which assistance is provided under section #ac7;c7 of the ,federal ,deposit ,insurance ,act4 7,b7 ,concentration limit exception ,the ,board may1 without regard to paragraph 7#b71 approve an application pursuant to paragraph 7#a77;,a7 if-- 7i7 the application is for the acquisition of #a or more banks in default or in danger of default and the ,board determines1 based on clear and convincing evidence1 that consummation of the proposed acquisition is necessary to prevent significant economic disruption or significant adverse effects on financial stability1 and the ,corporation has not received any qualified bid from another institution that is not subject to the prohibition in paragraph 7#b72 or 7ii7 the application is for an acquisition with respect to which assistance is provided under section #ac7;c7 of the ,federal ,deposit ,insurance ,act and the ,board determines1 based on clear and convincing evidence1 that consummation of the proposed acquisition is necessary to prevent significant economic disruption or significant adverse effects on financial stability1 and the ,corporation has not received any qualified bid from another institution that is not subject to the prohibition in paragraph 7#b74 7,c7 ,qualified bid defined ,in this paragraph1 the term qualified bid has the meaning given that term in section #ah7;c77#ac77;,c7 of the ,federal ,deposit ,insurance ,act4 2 and 7ii7 in section #d7;i77#h71 by amending subparagraph 7,b7 to read as follows3 7,b7 ,exception ,subparagraph 7,a7 shall not apply to an acquisition if-- 7i7 such acquisition involves an insured depository institution in default or in danger of default and the ,board determines1 based on clear and convincing evidence1 that consummation of the proposed acquisition is necessary to prevent significant economic disruption or significant adverse effects on financial stability1 and the ,corporation has not received any qualified bid 7as defined in section #ah7;c77#ac77;,c7 of the ,federal ,deposit ,insurance ,act7 from another institution that is not subject to the prohibition in paragraph 7#b72 or 7ii7 the ,federal ,deposit ,insurance ,corporation provides assistance under section #ac of the ,federal ,deposit ,insurance ,act to facilitate such acquisition and the ,board determines1 based on clear and convincing evidence1 that consummation of the proposed acquisition is necessary to prevent significant economic disruption or significant adverse effects on financial stability1 and the ,corporation has not received any qualified bid 7as defined in section #ah7;c77#ac77;,c7 of the ,federal ,deposit ,insurance ,act7 from another institution that is not subject to the prohibition in paragraph 7#b74 4 7#b7 ,concentration limit with respect to consolidated liabilities ,section #ad7;c7 of the ,bank ,holding ,company ,act of #aief 7#ab ,u4,s4,c4 #aheb7;c77 is amended-- 7,a7 by redesignating paragraphs 7#a71 7#b71 and 7#c7 as subparagraphs 7,a71 7,b71 and 7,c71 respectively2 7,b7 by striking ,with the and inserting the following3 7#a7 ,in general ,with the 2 and 7,c7 by adding at the end the following3 7#b7 ,limitation ,the ,board may provide written consent for an acquisition described in paragraph 7#a77;,a7 or in paragraph 7#a77;,b7 only if the ,board determines1 based on clear and convincing evidence1 that consummation of the proposed acquisition is necessary to prevent significant economic disruption or significant adverse effects on financial stability1 and the ,corporation has not received any qualified bid 7as defined in section #ah7;c77#ac77;,c7 of the ,federal ,deposit ,insurance ,act7 from another institution that is not subject to the prohibition in subsection 7b74 4 7b7 ,congressional notification and justification for waivers 7#a7 ,in general ,whenever the ,board of ,governors of the ,federal ,reserve ,system1 the ,comptroller of the ,currency1 or the ,federal ,deposit ,insurance ,corporation waives a concentration limit under section #ah7;c77#ac77;,b7 or section #dd7;e7 of the ,federal ,deposit ,insurance ,act or under section #c7;d77#e71 section #d7;i77#h77;,b71 or section #ad7;c77#b7 of the ,bank ,holding ,company ,act of #aief1 in connection with the acquisition of a bank or insured depository institution in default or in danger of default1 or in connection with an acquisition with respect to which the ,federal ,deposit ,insurance ,corporation provides assistance under section #ac of the ,federal ,deposit ,insurance ,act1 the waiving agency and the ,federal ,deposit ,insurance ,corporation1 jointly1 shall1 not later than #cj days after such waiver1 submit a written report to the ,committee on ,financial ,services of the ,house of ,representatives and the ,committee on ,banking1 ,housing1 and ,urban ,affairs in the ,senate containing-- 7,a7 a justification for the waiver1 including an analysis of why it was necessary to prevent significant economic disruption or significant adverse effects on financial stability2 7,b7 a description of alternative bids or outcomes considered1 including efforts to solicit and encourage bids from entities that would not require a waiver2 7,c7 an explanation of why alternative bids were not selected1 if applicable2 and 7,d7 any recommendations for legislative or regulatory changes to improve competition in future insured depository institution resolutions4 7#b7 ,public disclosure ,the waiving agency submitting a report under paragraph 7#a7 and the ,federal ,deposit ,insurance ,corporation shall make the report publicly available on their respective websites1 subject to redactions for confidential supervisory information and any other information described under section #eeb7;b7 of title #e1 ,united ,states ,code4 7c7 ,limitation on considering bad faith bids in least cost determination ,section #ac7;c77#d7 of the ,federal ,deposit ,insurance ,act 7#ab ,u4,s4,c4 #ahbc7;c77#d771 as amended by section #gja7;a77#c71 is further amended by adding at the end the following3 7,j7 ,limitation on considering bad faith bids ,in making a determination under this paragraph of whether an exercise of authority is the least costly to the ,deposit ,insurance ,fund1 the ,corporation may not consider any application1 proposed application1 or bid from a company1 if such application1 proposed application1 or bid would result in violation of-- 7i7 section #ah7;c77#ac7 or #dd7;b77#b72 or 7ii7 section #c7;d77#b71 #d7;i77#h71 or #ad of the ,bank ,holding ,company ,act of #aief4 4 #gjd4 ,systemic ,risk ,authority ,transparency 7a7 ,,gao review ,section #ac7;c77#d77;,g77iv7 of the ,federal ,deposit ,insurance ,act 7#ab ,u4,s4,c4 #ahbc7;c77#d77;,g77iv77 is amended to read as follows3 7iv7 ,,gao review 7,i7 ,in general ,the ,comptroller ,general of the ,united ,states shall1 not later than #fj days after a determination is made under clause 7i71 and again #ahj days thereafter1 review and report to the ,congress on the determination under clause 7i71 including-- 7aa7 the basis for the determination2 7bb7 the purpose for which any action was taken pursuant to such clause2 7cc7 the likely effect of the determination and such action on the incentives and conduct of insured depository institutions and uninsured depositors2 7dd7 any mismanagement by the executives and board of the insured depository institution that contributed to the failure of the insured depository institution2 7ee7 a review of the compensation practices of the insured depository institution2 7ff7 any supervisory or regulatory shortcomings with respect to the appropriate ,federal banking agency of the insured depository institution2 7gg7 any actions taken by the ,federal banking regulators1 ,financial ,stability ,oversight ,council1 ,department of the ,treasury1 and other relevant financial regulators in relation to the failure of the insured depository institution2 and 7hh7 any additional relevant entities or activities that may have contributed to the failure of the insured depository institution1 including with respect to auditing1 accounting1 credit rating agencies1 investment bank underwriters1 and emergency liquidity options such as loans from the ,federal reserve banks or advances through the ,federal ,home ,loan ,bank system4 7,,ii7 ,rule of construction ,nothing in this clause or a report issued pursuant to this clause may be construed to limit the authority of a ,federal agency to enforce violations of ,federal statutes1 rules1 or orders4 4 7b7 ,appropriate federal banking agency report ,section #ac7;c7 of the ,federal ,deposit ,insurance ,act 7#ab ,u4,s4,c4 #ahbc7;c77 is amended by adding at the end the following3 7#ab7 ,appropriate federal banking agency report 7,a7 ,in general ,the appropriate ,federal banking agency of an insured depository institution about which a determination is made under paragraph 7#d77;,g77i7 shall1 not later than #ij days after the date of such determination1 and again #baj days thereafter1 submit a report to the ,congress that discloses the following3 7i7 ,subject to such redactions as the appropriate ,federal banking agency determines appropriate to protect personally identifiable information about customers and other financial institutions 7as such term is defined under section #aa7;e77#i77;,d771 all-- 7,i7 reports of examination and inspection that relate to the failed insured depository institution in the previous #c-year period2 7,,ii7 formal communications of a material supervisory determination conveyed to the failed insured depository institution in the previous #c-year period2 and 7,,iii7 any additional exam reports and correspondence that the appropriate ,federal banking agency determines may be relevant to the failure of the insured depository institution4 7ii7 ,an examination of any mismanagement by the executives and board of the insured depository institution that contributed to the failure of the insured depository institution4 7iii7 ,any supervisory or regulatory shortcomings by such appropriate ,federal banking agency with respect to the insured depository institution4 7iv7 ,any dynamics that the appropriate ,federal banking agency determines may have contributed to the failure of the insured depository institution4 7v7 ,any supervisory1 regulatory1 or legislative recommendations such appropriate ,federal banking agency may have to improve the safety and soundness of similarly situated insured depository institutions1 the banking system1 and financial stability4 7,b7 ,protection of sensitive information 7i7 ,effect on privilege ,the provision of any information by a ,federal banking agency under this paragraph may not be construed as-- 7,i7 waiving1 destroying1 or otherwise affecting any privilege applicable to the information2 or 7,,ii7 waiving any exemption applicable to the information under section #eeb of title #e1 ,united ,states ,code 7commonly known as the ,freedom of ,information ,act74 7ii7 ,transparency 7,i7 ,in general ,a ,federal banking agency shall publish materials contained in a report required under subparagraph 7,a7 to the fullest extent possible to promote transparency4 7,,ii7 ,consultation on omitting materials ,if a ,federal banking agency determines particular materials described under subclause 7,i7 should not be published1 the ,federal banking agency shall consult with the ,chair and ,ranking ,member of the ,committee on ,financial ,services of the ,house of ,representatives and the ,chair and ,ranking ,member of the ,committee on ,banking1 ,housing1 and ,urban ,affairs of the ,senate4 7,,iii7 ,omitting materials ,if1 after the consultation required under subclause 7,,ii71 the ,federal banking agency determines there is a substantial public interest in not publishing such materials1 the ,federal banking agency shall provide those materials to the ,committee on ,financial ,services of the ,house of ,representatives and the ,committee on ,banking1 ,housing1 and ,urban ,affairs of the ,senate with a written explanation describing the reasons for not publishing those materials4 7iii7 ,privilege ,for purposes of this subparagraph1 the term privilege includes any work-product1 attorney-client1 or other privilege recognized under ,federal or ,state law4 7,c7 ,report extension ,a ,federal banking agency may extend a deadline described under subparagraph 7,a7 for an additional #fj days1 if the ,federal banking agency-- 7i7 faces ongoing circumstances that require the ,federal banking agency to prioritize activities to promote stability of the ,u4,s4 banking system2 and 7ii7 notifies the ,congress of such extension and the reasons for such extension4 7,d7 ,consolidated reports ,a ,federal banking agency may consolidate multiple reports required under this paragraph so long as the individual reports being consolidated all meet the timing requirements under this paragraph4 7,e7 ,rule of construction ,nothing in this paragraph or reports or materials provided pursuant to this paragraph may be construed to limit the authority of a ,federal agency to enforce violations of ,federal statutes1 rules1 or orders4 4 ,,viii ,facilitating ,innovation and ,bank ,partnerships #hja4 ,merchant ,banking ,modernization ,section #d7k77#g77;,a7 of the ,bank ,holding ,company ,act of #aief 7#ab ,u4,s4,c4 #ahdc7k77#g77;,a77 is amended by inserting ,under such regulations1 the period of time generally permitted for holding merchant banking investments shall not be less than #ae years4 ,for any merchant banking investment held on the date of enactment of the ,merchant ,banking ,modernization ,act1 the holding period of time permitted shall not be less than #ae years from the initial date of the investment4 after the period at the end4 #hjb4 ,bank-,fintech ,partnership ,enhancement 7a7 ,study on bank-,fintech partnerships 7#a7 ,study ,the ,board of ,governors of the ,federal ,reserve ,system1 the ,comptroller of the ,currency1 and the ,federal ,deposit ,insurance ,corporation shall carry out a study of-- 7,a7 the impact of partnerships between banking organizations1 on the one hand1 and financial technology companies1 on the other hand1 on the banking sector1 competition1 innovation1 consumer protection1 and the availability of financial products and services1 including the extent to which these partnerships support the formation of new banking organizations1 reduce time to market for products and services1 lower compliance burdens1 boost customer acquisition1 improve technological capabilities1 and provide access to more diverse funding sources2 and 7,b7 what changes to ,federal laws governing banking organizations1 or to rules or guidance adopted by the ,board of ,governors of the ,federal ,reserve ,system1 the ,comptroller of the ,currency1 or the ,federal ,deposit ,insurance ,corporation1 may help promote effective partnerships between banking organizations1 on the one hand1 and financial technology companies1 on the other hand4 7#b7 ,report ,not later than #a year after the date of enactment of this ,act1 the ,board of ,governors of the ,federal ,reserve ,system1 the ,comptroller of the ,currency1 and the ,federal ,deposit ,insurance ,corporation shall issue a report to the ,committee on ,financial ,services of the ,house of ,representatives and the ,committee on ,banking1 ,housing1 and ,urban ,affairs of the ,senate containing all findings and determinations made in carrying out the study required under paragraph 7#a74 7#c7 ,banking organization defined ,in this subsection1 the term banking organization means a depository institution holding company or an insured depository institution1 as such terms are defined1 respectively1 under section #c of the ,federal ,deposit ,insurance ,act 7#ab ,u4,s4,c4 #ahac74 7b7 ,study on credit union-,fintech partnerships 7#a7 ,study ,the ,national ,credit ,union ,administration shall carry out a study of-- 7,a7 the impact of partnerships between credit unions1 on the one hand1 and financial technology companies1 on the other hand1 on the credit union sector1 competition1 innovation1 consumer protection1 and the availability of financial products and services1 including the extent to which these partnerships support the formation of new credit unions1 reduce time to market for products and services1 lower compliance burdens1 boost customer acquisition1 improve technological capabilities1 and provide access to more diverse funding sources2 and 7,b7 what changes to ,federal laws governing credit unions1 or to rules or guidance adopted by the ,national ,credit ,union ,administration1 may help promote effective partnerships between credit unions1 on the one hand1 and financial technology companies1 on the other hand4 7#b7 ,report ,not later than #a year after the date of enactment of this ,act1 the ,national ,credit ,union ,administration shall issue a report to the ,committee on ,financial ,services of the ,house of ,representatives and the ,committee on ,banking1 ,housing1 and ,urban ,affairs of the ,senate containing all findings and determinations made in carrying out the study required under paragraph 7#a74 ,april #bj1 #bjbf,reported with an amendment1 committed to the ,committee of the ,whole ,house on the ,state of the ,union1 and ordered to be printed