Following a 10-day wait in which President Trump declined to sign or veto the bill, the 21st Century ROAD to Housing Act officially took effect on July 10.
The final bill passed with several banking provisions included, despite long odds and calls from President Trump to adopt the Senate version of the bill, which excluded them.
“While the housing bill is certainly not the regulatory overhaul we would have liked, community banks are grateful to Chairman French Hill (R-AR) for his work to ensure regulatory relief provisions were included in the final bill,” said IBAT President and CEO Christopher Williston.
Williston added, “Chairman Hill stared down the Senate and the President to ensure that at least some of the House Financial Services Committee’s work became law this Congress.”
The legislation includes provisions supported by national and state community banking groups to:
- Allow community banks to hold custodial deposits and more reciprocal deposits without them being considered brokered deposits, which are subject to restrictions.
- Provide an 18-month exam cycle and other exam relief for banks with up to $6 billion in assets.
- Promote the formation of de novo community banks by streamlining the application process.
- Create a two-year pilot program to promote the creation of de novo banks, especially in rural areas, by providing more regulatory, capital and lending flexibility.
- Establish a Treasury Financial Agent program enabling partnerships between minority depository institutions, rural community banks and other financial institutions.
- Require the federal banking agencies to study improving the growth, capital adequacy and profitability of rural depository institutions.
