This bill gives the Federal Reserve Board member with community banking experience specific new responsibilities for overseeing smaller banks. The bill requires the Federal Reserve Chairman to designate this community bank expert to develop policy recommendations and oversee supervision of banks with less than $17 billion in assets, up from the current $10 billion threshold. The designated member would be required to testify before Congress twice a year about the Federal Reserve's supervision of community banks, similar to how the Vice Chairman for Supervision currently testifies about larger banks. The bill also includes an automatic adjustment mechanism that would increase the $17 billion asset threshold each year based on economic growth as measured by nominal GDP. This legislation aims to ensure community banks have dedicated representation and oversight within the Federal Reserve system as they face regulatory challenges distinct from those of larger financial institutions.
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