H.R. 6955
Main Street Capital Access Act
Sponsor: J. French Hill · 33 cosponsors
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Official summary
Written by the Congressional Research Service.
Main Street Capital Access Act or the Main Street Act
This bill lessens and otherwise modifies banking regulations, including those regarding institution formation, supervision by federal financial regulators, and bank merger requirements.
Under the bill, new banks have a three-year phase-in period to meet certain capital requirements. The bill also reduces the leverage ratio for certain rural community banks.
Financial regulators must (1) tailor regulatory actions to limit burdens on financial institutions and must consider the institutions' risk profiles and business models, and (2) review their regulations more frequently and expand the scope of these reviews.
The bill eases requirements regarding bank mergers, for example, by allowing financial regulators to approve certain bank mergers without considering if the merger is noncompetitive or monopolistic.
The bill increases the dollar asset thresholds for various fees, reporting requirements, and other regulatory requirements so that more financial companies and banks are exempt from these requirements. For example, the bill increases the total asset threshold above which financial holding companies need Federal Reserve Board approval to acquire a company, thereby allowing for more acquisitions without board approval. The bill also raises certain asset thresholds so as to allow additional small bank holding companies to operate with higher debt levels and additional small banks to qualify for a longer examination cycle.
The bill also provides flexibilities regarding the use of reciprocal deposits, the resolution of failed banks, and other regulated activities.
Text of the bill
I New Bank Formation and Local Community Access
II Tailoring Bank Regulation
III Fair and Transparent Bank Supervision
IV Regulatory Accountability and Transparency
V Strengthening Local Bank Funding
VI Promoting Bank Competition and Merger Clarity
VII Strengthening Transparency and Involvement in Bank Resolutions
(a) Study. The Comptroller of the Currency, the Federal Deposit Insurance Corporation, and the Board of the Governors of the Federal Reserve System shall, jointly, carry out a study of—
(1) the use by the Comptroller of the Currency of shelf charters, including all conditional or preliminary shelf charter approvals granted between January 1, 2008, and the date of enactment of this Act;
(2) the use by the Federal Deposit Insurance Corporation of the modified bidder qualification process;
(3) the application of the Bank Holding Company Act of 1956 (12 U.S.C. 1841 et seq.) and section 10 of the Home Owners’ Loan Act (12 U.S.C. 1467a) to shelf charter proposals;
(4) whether shelf charters and modified bidder qualification processes were considered or used in connection with the receivership of any insured depository institution for which the Federal Deposit Insurance Corporation was appointed receiver in 2023;
(5) with respect to such receiverships, the extent to which greater use of shelf charters and modified bidder qualification processes could have—
(A) expanded the pool of participants in the acquisition of the assets or liabilities of such failed insured depository institutions;
(B) resulted in greater competition and diversity in market outcomes;
(C) protected the Deposit Insurance Fund; or
(D) strengthened financial stability and reduced the need for any emergency determination by the Secretary of the Treasury under section 13(c)(4)(G) of the Federal Deposit Insurance Act (12 U.S.C. 1823(c)(4)(G)) with respect to any such receivership;
(6) the impact of the use of shelf charters and modified bidder qualification processes since January 1, 2008, including on financial stability, the safety and soundness of affected insured depository institutions, and the availability of financial products and services provided to consumers by such institutions; and
(7) any benefits and risks of private equity ownership of banks through the use of shelf charters and modified bidder qualification processes.
(b) Report. Not later than 1 year after the date of enactment of this Act, the Comptroller of the Currency, the Federal Deposit Insurance Corporation, and the Board of the Governors of the Federal Reserve System shall, jointly, submit a report to the Committee on Financial Services of the House of Representatives and the Committee on Banking, Housing, and Urban Affairs of the Senate containing—
(1) all findings and determinations made in carrying out the study required under subsection (a); and
(2) an identification of statutory or regulatory barriers to the use and effectiveness of shelf charters and modified bidder qualification processes in the resolution of failed insured depository institutions, including recommendations for legislative and regulatory changes.
(c) Definitions. In this section:
(1) Insured depository institution. The term insured depository institution has the meaning given the term in section 3 of the Federal Deposit Insurance Act (12 U.S.C. 1813).
(2) Modified bidder qualification process. The term modified bidder qualification process has the meaning given such term in the press release of the Federal Deposit Insurance Corporation titled FDIC Expands Bidder List for Troubled Institutions Plan Allows Those Without a Bank Charter to Participate in the Process published November 26, 2008.
(3) Shelf charter. The term shelf charter has the meaning given such term in the report issued by the Comptroller of the Currency titled Activities Permissible for National Banks and Federal Savings Associations, Cumulative published October 2017.
VIII Facilitating Innovation and Bank Partnerships