House and Senate leaders announced a deal on bicameral housing legislation that includes ICBA-advocated community banking provisions and began advancing the measure last night.
Deal Announced: Senate Banking Committee Chairman Tim Scott (R-S.C.), Ranking Member Elizabeth Warren (D-Mass.), House Financial Services Committee Chairman French Hill (R-Ark.) and Ranking Member Maxine Waters (D-Calif.) announced the final housing package Tuesday afternoon after months of negotiations and multiple votes on separate House and Senate versions of housing legislation. The Senate on Tuesday advanced the compromise package via a procedural vote, with a final vote planned for this week.
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.
Community Banker Advocacy: The announcement follows 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: ICBA continues working with lawmakers to ensure the bill advances this week and thanks community bankers for their strong grassroots outreach to members of the House and Senate.