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Large State Banks Must Convert to National Banks for Stability

This act aims to enhance financial stability by automatically converting very large state-chartered banks (those with assets over $100 billion) into national banks. This change subjects these institutions to uniform, stricter federal oversight, intended to better protect deposits and prevent bank failures. For citizens, this means potentially increased security for their savings held in the largest financial institutions.
Key points
Automatic Status Change: State banks with assets exceeding $100 billion must automatically convert into national banking associations.
Stricter Federal Oversight: Converted banks will fall under direct federal supervision (Comptroller of the Currency), standardizing and tightening regulations.
Goal: To increase the stability of the banking system and provide greater protection against the failure of major financial institutions.
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Expired
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Additional Information
Print number: 118_S_2497
Sponsor: Sen. Vance, J. D. [R-OH]
Process start date: 2023-07-26
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Summarized by: gemini-2.5-flash-preview-09-2025
Source data: api.congress.gov
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OFFICIAL LEGAL TITLE

Bank Failure Prevention Act

FREQUENTLY ASKED QUESTIONS

What is the official ID of this bill?

The official print number for this legislation is 118_S_2497.

Which chamber initiated this legislation?

This legislation was initiated in the Senate.

When did the legislative process begin?

The process officially started on 2023-07-26.

What are the main provisions?

Key points include:

  • Automatic Status Change: State banks with assets exceeding $100 billion must automatically convert into national banking associations.
  • Stricter Federal Oversight: Converted banks will fall under direct federal supervision (Comptroller of the Currency), standardizing and tightening regulations.
  • Goal: To increase the stability of the banking system and provide greater protection against the failure of major financial institutions.
What is the specific legal status?

The current status is Expired.

Where can I read the full text of this legislation?

The full official text is available at: View full text

Who is the primary sponsor?

The primary sponsor is Sen. Vance, J. D. [R-OH].

What is the latest detailed status?

The latest detailed status is: Introduced in Senate

Is this summary verified?

Yes. This content was analyzed by AI and verified by the Lustra Judge System on 2025-12-26.

CATEGORIES

Economy