H.R.1900 - Bank Failure Prevention Act of 2025 (119th Congress)
Summary
H.R.1900, the Bank Failure Prevention Act of 2025, aims to expedite the application process for acquisitions related to depository institution holding companies. It amends the Bank Holding Company Act of 1956 and the Home Owners' Loan Act. The bill sets specific deadlines for the Board to review applications and clarifies what constitutes a complete record.
Expected Effects
The bill will likely lead to faster processing of bank acquisition applications. It restricts the Board's ability to consider third-party information during the initial completeness review. Failure by the Board to meet deadlines results in automatic approval of the application.
Potential Benefits
- Streamlines the application process for bank acquisitions, potentially reducing regulatory delays.
- Provides more certainty to applicants regarding the timeline for application review.
- Limits the Board's discretion by setting firm deadlines and restricting the use of third-party information during the initial completeness review.
- Could foster more competition and consolidation within the banking sector.
- May reduce compliance costs for financial institutions.
Most Benefited Areas:
Potential Disadvantages
- May reduce the thoroughness of application reviews by limiting the time and scope of the Board's assessment.
- Could increase the risk of approving acquisitions that pose financial stability risks due to the expedited process.
- Limits the ability of the Board to consider valuable insights from third-party experts.
- May disproportionately benefit larger institutions with the resources to quickly compile applications.
- Could lead to unintended consequences if the expedited process overlooks critical information.
Constitutional Alignment
The bill falls under Congress's power to regulate commerce, as outlined in Article I, Section 8, Clause 3 (the Commerce Clause). It specifically addresses the regulation of financial institutions, which are integral to interstate commerce. The bill does not appear to infringe upon any specific constitutional rights or protections.
Impact Assessment: Things You Care About ⓘ
This action has been evaluated across 19 key areas that matter to you. Scores range from 1 (highly disadvantageous) to 5 (highly beneficial).