After House and Senate leaders this week announced a deal on bicameral housing legislation that includes ICBA-advocated regulatory relief provisions, ICBA urged lawmakers to pass the legislation.
Details: With the Senate expected to vote on the amended 21st Century ROAD to Housing Act (H.R. 6644) as soon as this week, ICBA sent a letter to senators expressing its strong support for the measure, which includes a community banking title with reforms long advocated by ICBA.
Community Banking Title: The final 21st Century ROAD to Housing Act includes ICBA-advocated provisions under Title IX to:
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Allow community banks to hold custodial deposits and more reciprocal deposits without them being considered brokered deposits, which are subject to restrictions.
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Provide an 18-month exam cycle and other exam relief for banks with up to $6 billion in assets.
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Promote the formation of de novo community banks by streamlining the application process.
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Create a two-year pilot program to promote the creation of de novo banks, especially in rural areas, by providing more regulatory, capital, and lending flexibility.
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Establish a Treasury Financial Agent program enabling partnerships between minority depository institutions, rural community banks, and other financial institutions.
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Require the federal banking agencies to study improving the growth, capital adequacy, and profitability of rural depository institutions.
Background: Senate Banking Committee Chairman Tim Scott (R-S.C.) and Ranking Member Elizabeth Warren (D-Mass.) and House Financial Services Committee Chairman French Hill (R-Ark.) and Ranking Member Maxine Waters (D-Calif.) this week announced the final legislative package after months of negotiations and multiple votes on separate House and Senate versions of the legislation.
Community Banker Advocacy: The announcement followed months of direct ICBA advocacy, including at this year’s ICBA Capital Summit and via a series of grassroots campaigns. ICBA advocacy culminated in a grassroots campaign over the past week encouraging the Senate to take up the House-passed community banking provisions, which has generated hundreds of new community banker messages to Congress.
Next Steps: With a potential Senate vote this week, ICBA thanks community bankers for their strong grassroots outreach to members of the House and Senate.