,,ii #aaith ,,congress #ast ,session ,s4 #aac ,,in ,,the ,,senate ,,of ,,the ,,united ,,states ,january #af1 #bjbe,mrs4 ,hyde-,smith introduced the following bill2 which was read twice and referred to the ,committee on ,banking1 ,housing1 and ,urban ,affairs ,a ,,bill ,to require the appropriate ,federal banking agencies to establish a #c-year phase-in period for de novo financial institutions to comply with ,federal capital standards1 to provide relief for de novo rural community banks1 and for other purposes4 #a4 ,short title ,this ,act may be cited as the ,promoting ,new ,bank ,formation ,act of #bjbe4 #b4 ,findings ,the ,congress finds the following3 7#a7 ,trends in bank closures and consolidation have left many communities without access to banking services and disproportionately impact underserved rural and urban communities4 7#b7 ,de novo bank formation has slowed significantly following the financial crisis4 7#c7 ,a ,november #bjai report by the ,federal ,reserve ,system found that #dd counties in the ,united ,states were deeply affected by trends in bank closures and consolidation1 meaning that the counties had fewer than #aj branches in #bjab and lost not less than #ej percent of them by #bjag4 7#d7 #hi percent of the deeply affected counties described in paragraph 7#c7 were rural4 7#e7 ,rural counties deeply affected by branch closures had higher poverty rates and lower median incomes1 and a higher share of their population were ,african-,american compared to all rural communities4 #c4 ,definitions ,in this ,act3 7#a7 ,appropriate ,federal banking agency2 depository institution2 depository institution holding company ,the terms appropriate ,federal banking agency1 depository institution1 and depository institution holding company have the meanings given those terms in section #c of the ,federal ,deposit ,insurance ,act 7#ab ,u4,s4,c4 #ahac74 7#b7 ,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#c7 ,financial institution ,the term financial institution means a depository institution or depository institution holding company4 7#d7 ,rural community bank ,the term rural community bank means a financial institution-- 7,a7 with total consolidated assets of less than #aj1jjj1jjj1jjj2 and 7,b7 located in a rural area1 as defined in section #ajbf4ce7;b77#b77;iv77,a7 of title #ab1 ,code of ,federal ,regulations1 or any successor regulation4 #d4 ,phase-in of capital standards ,the appropriate ,federal banking agencies shall issue rules that provide for a #c-year phase-in period for a financial institution to meet any ,federal capital requirements that would otherwise be applicable to the financial institution1 where the #c-year period begins on the date on which the deposit insurance that the financial institution has obtained from the ,federal ,deposit ,insurance ,corporation becomes effective4 #e4 ,changes to business plans 7a7 ,in general ,during the #c-year period beginning on the date on which the deposit insurance that the financial institution has obtained from the ,federal ,deposit ,insurance ,corporation becomes effective1 a financial institution may request to deviate from a business plan that has been approved by the appropriate ,federal banking agency by submitting a request to the agency pursuant to this section4 7b7 ,review of changes ,an appropriate ,federal banking agency shall1 not later than the end of the #cj-;day period beginning on the receipt of a request under subsection 7a7-- 7#a7 approve1 conditionally approve1 or deny the request2 and 7#b7 notify the financial institution of the decision and1 if the agency denies the request-- 7,a7 provide the financial institution with the reason for the denial2 and 7,b7 suggest changes to the request that1 if adopted1 would allow the agency to approve the request4 7c7 ,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 subsection 7b71 the request shall be deemed to be approved4 #f4 ,rural community bank leverage ratio 7a7 ,in general ,during the #c-year period beginning on the date on which the deposit insurance that a rural community bank has obtained from the ,federal ,deposit ,insurance ,corporation becomes effective1 the ,community ,bank ,leverage ,ratio for the rural community bank shall be #h percent4 7b7 ,phase-,in authority ,the appropriate ,federal banking agencies shall issue rules to phase-in the ,community ,bank ,leverage ,ratio described in subsection 7a7 with respect to a rural community bank by setting lower ,community ,bank ,leverage ,ratio percentages during the first #b years of the #c-year period described in subsection 7a74 #g4 ,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 #h4 ,study on de novo financial institutions 7a7 ,study ,the appropriate ,federal banking agencies shall1 jointly1 carry out a study on-- 7#a7 the principal causes for the low number of de novo financial institutions in the #aj-year period ending on the date of enactment of this ,act2 and 7#b7 ways to promote more de novo financial institutions in areas currently underserved by financial institutions4 7b7 ,report to ,congress ,not later than #a year after the date of enactment of this ,act1 the appropriate ,federal banking agencies shall1 jointly1 issue a report to ,congress containing all findings and determinations made in carrying out the study required under subsection 7a74