Promoting New and Diverse Depository Institutions Act

Promoting New and Diverse Depository Institutions Act

This bill requires federal banking agencies to study and report on the challenges faced by entities attempting to become chartered depository institutions and to develop a strategic plan to assist in the application process. The strategic plan must (1) promote the chartering of minority depository institutions and entities that could be certified as community development financial institutions, and (2) describe actions to increase the number of depository institutions located in underserved areas.

Bill 118 HR 1533, also known as the Promoting New and Diverse Depository Institutions Act, aims to promote the growth and diversity of depository institutions in the United States. The bill seeks to provide support and resources to new and minority-owned depository institutions, such as community banks and credit unions, in order to increase access to financial services for underserved communities.

The bill includes provisions for the creation of a grant program to assist new depository institutions in meeting regulatory requirements and expanding their operations. It also calls for the establishment of a mentorship program to pair new institutions with experienced industry professionals who can provide guidance and support.

Additionally, the bill aims to increase transparency and accountability in the regulatory process for depository institutions, with a focus on reducing unnecessary burdens and barriers to entry for new and diverse institutions. This includes provisions for regular reporting on the impact of regulations on small and minority-owned institutions, as well as requirements for regulators to consider the unique challenges faced by these institutions when developing new rules and policies. Overall, the Promoting New and Diverse Depository Institutions Act seeks to foster a more inclusive and competitive financial services industry by supporting the growth and success of new and minority-owned depository institutions.