Memo to HFSC: Views on Legislation for the May 16, 2024 Full Committee Markup

On behalf of the members of the American Bankers Association (ABA), please see below our views on several bills scheduled for consideration by the Committee on May 16, 2024. Thank you for the opportunity to express our position on these measures.

Promoting Access to Capital in Underbanked Communities Act of 2023 (H.R. 758)

The ABA supports the "Promoting Access to Capital in Underbanked Communities Act of 202" (H.R. 758), which was introduced by Rep. Andy Barr (R-KY). The bill would establish a three-year phase-in period for new banks to comply with federal capital standards, among other provisions designed to promote and sustain de novo banking.

Today, there are over 4,000 fewer banks in the United States than there were in 2005. By facilitating the formation of new banks in urban and rural areas, this legislation expands banking access for both individuals and small- and medium-sized businesses. The bill would unlock economic opportunity, growth, and investment in communities most in need, while also promoting competition. The temporary regulatory adjustments provided in this bill are a reasonable step to encourage the formation of de novo banks that will be well equipped to meet the banking and financial needs of their local customers and communities.

Titles II, III, V and VI of the Bank Resilience and Regulatory Improvement Act (H.R. 8337)

The ABA supports the following titles of the Bank Resilience and Regulatory Improvement Act (H.R. 8337), introduced by Rep. Barr:

Bank Failure Prevention (Title II)

Title II—Bank Failure Prevention—seeks to eliminate uncertainty in the bank merger application process by requiring the Federal Reserve to make a determination on merger applications in a timely fashion. Mergers can increase competition and maintain a dynamic banking industry by allowing institutions to achieve economies of scale, leading to cost savings for consumers. This legislation would decrease uncertainty in the merger application process by implementing a 90-day window within which the Fed must act on a bank merger application.

Download the memo to read the full text.