The Merchant Banking Modernization Act would extend the time that bank holding companies can hold merchant banking investments from the current period to at least 15 years. Merchant banking investments are when banks invest in non-financial companies as part of their business activities. This bill affects large bank holding companies that make these types of investments, and it also applies retroactively to investments already held on the date the law takes effect, giving them a minimum 15-year holding period from their original purchase date. The legislation amends the Bank Holding Company Act of 1956 and was introduced in the Senate in August 2025 by a group of Republican senators, though no specific funding amounts or implementation deadlines are mentioned in the bill text.
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