Texas community banks have been waiting for this one. When the Senate passed the 21st Century ROAD to Housing Act in March, it stripped out the House-approved community bank relief provisions entirely.
Last week, the House restored those provisions when it passed its amended version of H.R. 6644 by a 396-13 vote on May 20, sending the legislation back to the Senate. The House amendment reinstates 13 sections of community bank regulatory relief, including exempting custodial deposits from brokered deposit classification for well-capitalized institutions under $10 billion in assets. This means easing examination requirements for well-managed banks with $6 billion or less in assets and creating a pilot program to phase in capital requirements for de novo banks.
The two chambers must now reconcile their differences. IBAT has been on record since March urging lawmakers to preserve these provisions and the House delivered. Now, attention turns to whether the Senate will do the same.
“The House has done its part — twice,” said IBAT President and CEO Christopher Williston. “Community bank provisions that make this housing bill work for Main Street and deliver focused relief to community banks are in the legislation. The Senate now has a clear choice: send the President a bill that includes the most meaningful regulatory reform provisions since 2018, and let community banks get back to work.”
