Small Bank Holding Company Relief Act of 2023

Small Bank Holding Company Relief Act of 2023

This bill requires the Federal Reserve Board to raise the consolidated asset threshold under which a specified policy statement applies to small bank holding companies. The policy statement allows small bank holding companies to operate with higher debt levels than would be allowed for larger bank holding companies.

The Small Bank Holding Company Relief Act of 2023, also known as Bill 118 hr 4346, is a piece of legislation currently being considered by the US Congress. The main purpose of this bill is to provide regulatory relief to small bank holding companies, which are defined as those with assets of less than $3 billion.

If passed, the Small Bank Holding Company Relief Act would exempt small bank holding companies from certain regulatory requirements that are currently imposed on larger institutions. This includes exemptions from certain capital and leverage ratio requirements, as well as relief from certain reporting and disclosure requirements.

Proponents of the bill argue that these regulatory burdens disproportionately affect smaller institutions, making it harder for them to compete with larger banks. They believe that by providing relief to small bank holding companies, the bill will help to promote competition and innovation in the banking industry. Opponents of the bill, however, argue that relaxing regulations on small bank holding companies could increase the risk of financial instability and put consumers at risk. They believe that these regulations are in place for a reason, and that exempting smaller institutions from them could have negative consequences for the economy as a whole. Overall, the Small Bank Holding Company Relief Act of 2023 is a complex piece of legislation that seeks to strike a balance between promoting competition and ensuring financial stability. It is currently being debated in Congress, and its ultimate fate remains uncertain.