Small Bank Holding Company Relief Act
Summary
The Small Bank Holding Company Relief Act aims to raise the consolidated assets threshold under the Small Bank Holding Company and Savings and Loan Holding Company Policy Statement to $25 billion. This change would allow more bank holding companies to be classified as "small," potentially reducing their regulatory burden. The bill directs the Board of Governors of the Federal Reserve System to revise relevant regulations within 180 days of enactment.
Expected Effects
The primary effect of this act would be to reclassify certain bank holding companies as "small" based on their asset size. This reclassification could lead to reduced regulatory oversight and compliance costs for these institutions. It may also influence their lending practices and investment strategies.
Potential Benefits
- Reduced regulatory burden for mid-sized banks, potentially freeing up capital for lending.
- Increased lending capacity for small businesses and consumers in local communities.
- Potential for increased competition in the financial services sector.
- Simplification of regulatory compliance for affected bank holding companies.
- May encourage the formation of new small banks.
Most Benefited Areas:
Potential Disadvantages
- Increased risk of financial instability due to reduced regulatory oversight.
- Potential for increased risk-taking behavior by banks seeking higher returns.
- Possible negative impact on consumer protection due to relaxed regulations.
- May lead to consolidation in the banking industry as larger banks acquire smaller ones.
- Could disproportionately benefit larger regional banks at the expense of smaller community banks.
Constitutional Alignment
This bill appears to align with the constitutional authority of Congress to regulate commerce, as outlined in Article I, Section 8. The regulation of banks and financial institutions falls under the purview of Congress's power to regulate interstate commerce. The bill does not appear to infringe upon any specific constitutional rights or limitations.
Impact Assessment: Things You Care About ⓘ
This action has been evaluated across 19 key areas that matter to you. Scores range from 1 (highly disadvantageous) to 5 (highly beneficial).