Technical corrections only. The diff includes minor textual clarifications, a typo correction, and a more precise cross-reference. The substantive policy content of the bill remains unchanged between v1 and v2.
Community Bank Regulatory Tailoring Act
- Sponsor
- Rep. Barr, Andy [R-KY-6]
- Committees
- Financial Services Committee (primary)
- Last action
- Mar 19, 2026
Bottom line
The bill updates and indexes regulatory thresholds for financial institutions, primarily benefiting community banks and credit unions by reducing their compliance obligations.
What it actually does
This bill significantly raises various statutory monetary thresholds across numerous financial acts, including the Bank Holding Company Act, Community Reinvestment Act, Dodd-Frank Act, and Federal Deposit Insurance Act. These adjustments aim to reduce regulatory burdens for smaller financial institutions by exempting them from certain compliance requirements or altering the scope of regulations based on asset size. Additionally, it mandates the Board of Governors of the Federal Reserve System to periodically adjust these thresholds every five years based on changes in the current-dollar United States gross domestic product.
Proponents argue
Proponents argue that many existing regulatory thresholds are outdated and no longer reflect the current economic landscape due to inflation and GDP growth, disproportionately burdening smaller financial institutions. By raising these thresholds and indexing them to GDP, the bill would provide much-needed regulatory relief to community banks and credit unions, allowing them to focus more on serving their local communities and less on compliance costs. This, they contend, would foster economic growth and competition in the financial sector.
Opponents contend
Opponents might argue that raising regulatory thresholds, particularly those established after financial crises like the 2008 recession, could weaken financial oversight and potentially reintroduce systemic risks. They may contend that while regulatory relief for smaller institutions is desirable, a broad increase across many acts without granular assessment could inadvertently exempt institutions that still pose significant risks or reduce consumer protections. Critics might also express concern that indexing to GDP could lead to thresholds increasing too rapidly, further eroding regulatory safeguards over time.
The bill is concise and clearly structured, making it accessible for an informed reader to understand its provisions within a short timeframe. The implications, however, require familiarity with the underlying financial regulations.
Section 2(a)
Bank Holding Company Act of 1956 Threshold Adjustments
This provision amends the Bank Holding Company Act of 1956. It increases a threshold related to certain activities from $1,000,000 to $3,000,000 and another threshold concerning financial holding companies from $10,000,000,000 to $15,000,000,000. These changes modify the asset size at which certain regulatory requirements or exemptions apply to bank holding companies.
Supporters argue
Supporters argue that these adjustments reflect economic growth and inflation since the original thresholds were set, ensuring that the regulatory intent of targeting larger, more complex institutions is maintained without unduly burdening smaller, community-focused bank holding companies.
Critics contend
Critics may contend that increasing these thresholds could allow some institutions to operate with less oversight, potentially increasing risk, especially if the institutions are growing rapidly and approaching the new thresholds without adequate scrutiny.
Tradeoffs
The provision balances the desire to reduce regulatory compliance costs for smaller bank holding companies against the need to maintain appropriate oversight for institutions that could pose systemic risks.
Section 2(b)
Community Reinvestment Act of 1977 Threshold Adjustment
This section amends the Community Reinvestment Act of 1977 by raising a key asset threshold from $250,000,000 to $800,000,000. This change likely affects which institutions are subject to certain levels of CRA examination or reporting requirements, generally providing relief to banks with assets below the new $800 million threshold.
Section 2(d)
Dodd-Frank Act Threshold Adjustments
This provision makes several changes to the Dodd-Frank Wall Street Reform and Consumer Protection Act. It raises a threshold in Section 210 (related to orderly liquidation authority) from $50,000,000,000 to $105,000,000,000, and another in the same section from $1,000,000 to $5,000,000. It also amends Section 956(f) (related to executive compensation) by increasing a threshold from $1,000,000,000 to $3,000,000,000. These changes primarily affect the scope of enhanced prudential standards and executive compensation rules for financial institutions.
Section 2(f)
Federal Deposit Insurance Act Threshold Adjustments
This section significantly amends the Federal Deposit Insurance Act by increasing several thresholds. For example, it raises a threshold in Section 7(a)(12) from $5,000,000,000 to $8,000,000,000, and in Section 11(p)(1)(A)(i) from $1,000,000 to $5,000,000. More substantially, it increases thresholds in Section 36 (related to audit and reporting requirements) from $5,000,000,000 to $21,000,000,000 and from $150,000,000 to $800,000,000. In Section 38 (related to prompt corrective action), thresholds are raised from $300,000,000 to $2,000,000,000, and from $50,000,000 to $110,000,000 and $75,000,000 to $150,000,000. These changes alter the applicability of various reporting, audit, and supervisory requirements for insured depository institutions.
Section 3
Periodic Adjustments to Thresholds Based on GDP
This section mandates that the Board of Governors of the Federal Reserve System periodically adjust all the dollar amounts amended in Section 2. Starting April 1, 2031, and every five years thereafter, the Board must increase these thresholds based on the ratio of current-dollar United States gross domestic product (GDP). The provision also includes detailed rounding rules for these adjustments and requires the Board to publish the new amounts in the Federal Register, with changes taking effect on January 1 of the succeeding year.