What This Bill Does
This bill requires Federal banking regulators to work together to study the challenges that new banks face when trying to get approval to operate. After completing the study, these regulators must create a strategic plan to help new banks, especially those owned by minorities, successfully get their charters (official permission to operate as a bank).
Who It Affects
People trying to start new banks, especially minority-owned banks and community development financial institutions (organizations that provide financial services to underserved communities), Federal banking regulators, and communities that lack access to bank branches.
Key Provisions
• Federal banking regulators must jointly conduct a study about challenges faced by proposed depository institutions seeking de novo depository institution charters (new bank charters), including proposed minority depository institutions (Sec. 2(a)(1))
• Regulators must submit their study findings, analysis, and legislative recommendations to Congress and publish them publicly within 18 months of the bill becoming law (Sec. 2(a)(2))
• Regulators must create and publish a strategic plan within 18 months designed to help new depository institutions successfully apply for charters while promoting banking access, safety, consumer protection, and community investment (Sec. 2(b)(1))
• The strategic plan must describe actions regulators can take to increase the number of banks in geographic areas where consumers lack access to bank branches (Sec. 2(b)(2)(B))
• Federal banking regulators must invite public comments and feedback while conducting the study and developing the strategic plan (Sec. 2(c))
What Changes
If this bill becomes law, Federal banking regulators will be required to study why new banks struggle to get approved and will be required to develop a plan to make it easier for new banks to open, particularly in communities that currently have no bank branches nearby.
Important Definitions
• Depository institution: A bank or credit union that accepts deposits from customers
• Community development financial institution: An organization that provides financial services to underserved communities
• Federal banking regulators: The Board of Governors of the Federal Reserve System, the Comptroller of the Currency, the Federal Deposit Insurance Corporation, the National Credit Union Administration, and the Director of the Bureau of Consumer Financial Protection
• Minority depository institution: A bank or credit union owned or controlled by minorities
Effective Date
Not specified in bill text
I
118TH CONGRESS
1ST SESSION H. R. 1533
To require the Federal banking regulators to jointly conduct a study and
develop a strategic plan to address challenges faced by proposed deposi-
tory institutions seeking de novo depository institution charters; and
for other purposes.
IN THE HOUSE OF REPRESENTATIVES
MARCH 10, 2023
Mr. AUCHINCLOSS (for himself and Mr. MCHENRY) introduced the following
bill; which was referred to the Committee on Financial Services
A BILL
To require the Federal banking regulators to jointly conduct
a study and develop a strategic plan to address chal-
lenges faced by proposed depository institutions seeking
de novo depository institution charters; and for other
purposes.
Be it enacted by the Senate and House of Representa-
1
tives of the United States of America in Congress assembled,
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SECTION 1. SHORT TITLE.
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This Act may be cited as the ‘‘Promoting New and
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Diverse Depository Institutions Act’’.
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•HR 1533 IH
SEC. 2. STUDY AND STRATEGIC PLAN.
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(a) IN GENERAL.—The Federal banking regulators
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shall jointly—
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(1) conduct a study about the challenges faced
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by proposed depository institutions, including pro-
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posed minority depository institutions, seeking de
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novo depository institution charters; and
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(2) submit to the Committee on Financial Serv-
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ices of the House of Representatives and the Com-
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mittee on Banking, Housing, and Urban Affairs of
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the Senate and publish publically, not later than 18
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months after the date of the enactment of this sec-
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tion—
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(A) an analysis based on the study con-
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ducted pursuant to paragraph (1);
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(B) any findings from the study conducted
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pursuant to paragraph (1); and
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(C) any legislative recommendations that
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the Federal banking regulators developed based
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on the study conducted pursuant to paragraph
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(1).
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(b) STRATEGIC PLAN.—
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(1) IN GENERAL.—Not later than 18 months
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after the date of the enactment of this section, the
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Federal banking regulators shall jointly submit to
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the Committee on Financial Services of the House of
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•HR 1533 IH
Representatives and the Committee on Banking,
1
Housing, and Urban Affairs of the Senate and pub-
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lish publically a strategic plan based on the study
3
conducted pursuant to subsection (a) and designed
4
to help proposed depository institutions (including
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proposed minority depository institutions) success-
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fully apply for de novo depository institution char-
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ters in a manner that promotes increased availability
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of banking and financial services, safety and sound-
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ness, consumer protection, community reinvestment,
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financial stability, and a level playing field.
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(2) CONTENTS OF STRATEGIC PLAN.—The stra-
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tegic plan described in paragraph (1) shall—
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(A) promote the chartering of de novo de-
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pository institutions, including—
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(i) proposed minority depository insti-
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tutions; and
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(ii) proposed depository institutions
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that could be certified as community devel-
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opment financial institutions; and
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(B) describe actions the Federal banking
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regulators may take that would increase the
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number of depository institutions located in ge-
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ographic areas where consumers lack access to
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a branch of a depository institution.
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(c) PUBLIC INVOLVEMENT.—When conducting the
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study and developing the strategic plan required by this
2
Act, the Federal banking regulators shall invite comments
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and other feedback from the public to inform the study
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and strategic plan.
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(d) DEFINITIONS.—In this Act:
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(1) DEPOSITORY INSTITUTION.—The term ‘‘de-
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pository institution’’ has the meaning given in sec-
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tion 3 of the Federal Deposit Insurance Act, and in-
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cludes a ‘‘Federal credit union’’ and a ‘‘State credit
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union’’ as such terms are defined, respectively,
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under section 101 of the Federal Credit Union Act.
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(2) COMMUNITY DEVELOPMENT FINANCIAL IN-
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STITUTION.—The term ‘‘community development fi-
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nancial institution’’ has the meaning given in section
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103 of the Riegle Community Development and Reg-
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ulatory Improvement Act of 1994.
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(3) FEDERAL
BANKING
REGULATORS.—The
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term ‘‘Federal banking regulators’’ means the Board
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of Governors of the Federal Reserve System, the
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Comptroller of the Currency, the Federal Deposit
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Insurance Corporation, the National Credit Union
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Administration, and the Director of the Bureau of
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Consumer Financial Protection.
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(4) MINORITY DEPOSITORY INSTITUTION.—The
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term ‘‘minority depository institution’’ has the
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meaning given in section 308(b) of the Financial In-
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stitutions Reform, Recovery, and Enforcement Act
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of 1989.
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Æ
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