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Easier Rules for New Banks: Boosting Financial Access in Underserved Areas.

This Act aims to increase the formation of new banks, especially in rural and urban areas that have lost banking services due to closures. It establishes a 3-year phase-in period where new financial institutions face less stringent capital requirements. Citizens in underserved regions should benefit from improved access to loans and essential banking services, supporting local economic growth.
Key points
New banks receive a 3-year grace period to meet full capital standards, making it easier to open branches in areas lacking banking access.
New rural community banks receive specific, lower capital leverage ratio requirements during their first three years of operation.
Federal savings associations are explicitly authorized to issue secured and unsecured agricultural loans, supporting farm financing.
The process for new banks to change their business plans is sped up (30-day review or automatic approval).
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Additional Information
Print number: 118_S_3937
Sponsor: Sen. Hyde-Smith, Cindy [R-MS]
Process start date: 2024-03-14
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Source data: api.congress.gov
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OFFICIAL LEGAL TITLE

Promoting Access to Capital in Underbanked Communities Act

FREQUENTLY ASKED QUESTIONS

What is the official ID of this bill?

The official print number for this legislation is 118_S_3937.

Which chamber initiated this legislation?

This legislation was initiated in the Senate.

When did the legislative process begin?

The process officially started on 2024-03-14.

What are the main provisions?

Key points include:

  • New banks receive a 3-year grace period to meet full capital standards, making it easier to open branches in areas lacking banking access.
  • New rural community banks receive specific, lower capital leverage ratio requirements during their first three years of operation.
  • Federal savings associations are explicitly authorized to issue secured and unsecured agricultural loans, supporting farm financing.
  • The process for new banks to change their business plans is sped up (30-day review or automatic approval).
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. Hyde-Smith, Cindy [R-MS].

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 Agriculture