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HOUSE 2561117th CongressReferred to the House Committee on Financial Services.

Promoting Access to Capital in Underbanked Communities Act of 2021

Last Action
4/15/2021

Actions

  • 2021-04-15Referred to the House Committee on Financial Services.
  • 2021-04-15Introduced in House
  • 2021-04-15Introduced in House

CRS Summary

As of 2021-04-15 (00)

Promoting Access to Capital in Underbanked Communities Act of 2021

This bill eliminates and reduces certain requirements applicable to new financial institutions, certain rural community banks, and federal savings associations.

Federal banking agencies must issue rules allowing new financial institutions three years to meet capital requirements. During this period, a financial institution may request to deviate from an approved business plan and the appropriate agency has 30 days to approve or deny the request.

The community bank leverage ratio—a way of evaluating debt levels—is reduced for certain rural community banks. Specifically, new rural community banks must have a ratio of 8%, with a three-year phase-in of the rate. Currently, the ratio is 8.5%.

The bill removes certain restrictions to allow federal savings associations to invest in, sell, or otherwise deal in agricultural loans.

Cosponsors (4)

  • Byron Donalds (R-FL)
  • David Kustoff (R-TN)
  • John Rose (R-TN)
  • Ed Perlmutter (D-CO)

Subjects

  • Administrative law and regulatory procedures
  • Agricultural prices, subsidies, credit
  • Bank accounts, deposits, capital
  • Banking and financial institutions regulation
  • Congressional oversight
  • Credit and credit markets
  • Financial services and investments
  • Government information and archives
  • Government studies and investigations
  • Rural conditions and development
Read on Congress.gov

Sourced from Congress.gov (public domain).

This is legal information, not legal advice. Laws vary by jurisdiction and change frequently. Always verify current law with official sources and consult a licensed attorney in your jurisdiction for advice on your specific situation.