A bill to require the appropriate Federal banking agencies to establish a 3-year phase-in period for de novo financial institutions to comply with Federal capital standards, to provide relief for de novo rural community banks, and for other purposes.

Bill 119 s 113, also known as the "De Novo Bank Relief Act," aims to provide relief for newly established financial institutions, particularly those in rural communities, by requiring Federal banking agencies to establish a 3-year phase-in period for these institutions to comply with Federal capital standards.

The bill recognizes the challenges faced by de novo banks in meeting the stringent capital requirements set by Federal regulators, which can often hinder their ability to grow and serve their communities effectively. By allowing these institutions a gradual transition period to meet these standards, the bill aims to promote the growth and stability of de novo banks, particularly in rural areas where access to financial services may be limited.

In addition to the phase-in period for capital standards, the bill also includes provisions to provide relief for de novo rural community banks, such as exemptions from certain reporting requirements and regulatory burdens that can be particularly onerous for smaller institutions. Overall, the De Novo Bank Relief Act seeks to support the growth and success of newly established financial institutions, particularly in rural communities, by providing them with the necessary time and flexibility to comply with Federal regulations and thrive in the competitive banking industry.