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Bill

HR 1900

Bank Failure Prevention Act of 2025

119th Congress Introduced by Andy Barr and 3 co-sponsors

The Bank Failure Prevention Act streamlines acquisition approvals for banks, ensuring timely decisions and reducing delays, benefiting depository institutions and the Federal Reserve.

Reported (Amended) by the Committee on Financial Services. H. Rept. 119-132.
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Bill Summary · HR 1900

Summary of HR 1900: Bank Failure Prevention Act of 2025

Purpose and Intent

The Bank Failure Prevention Act of 2025 aims to enhance the regulatory framework governing the approval process for acquisition applications related to depository institution holding companies. The bill seeks to streamline the process, ensuring timely decisions by the Board of Governors of the Federal Reserve System (the Board) and reducing uncertainty for applicants.

Key Provisions

The bill introduces several significant amendments to existing laws, particularly the Bank Holding Company Act of 1956 and the Home Owners’ Loan Act:

  1. Complete Record on Applications:

    • The Board must confirm whether an application record is complete within 30 days of receipt. If additional information is required, the Board must detail what is needed.
    • For complex applications, this 30-day period can be extended by an additional 30 days.

  2. Deeming Applications Granted:

    • If the Board fails to grant or deny an application within 90 days of submission, the application is automatically deemed granted.
    • The Board can extend this deadline by up to 30 days at the applicant's request.

  3. Limiting Third-Party Influence:

    • The Board's determination of whether an application record is complete will only consider information provided by the applicant, excluding third-party reports or recommendations.

  4. Notification Requirements:

    • Upon receiving a response from an applicant regarding additional information, the record is deemed complete unless the Board identifies material deficiencies and notifies the applicant within 30 days.

Affected Parties

The bill primarily impacts:
- Depository Institution Holding Companies: Entities seeking to acquire or merge with other financial institutions will benefit from a clearer and more predictable approval process.
- Federal Reserve Board: The Board will have new procedural requirements to follow, potentially affecting its operational workload.

Procedural Aspects

  • Introduced: March 6, 2025
  • Reported (Amended): June 4, 2025, by the Committee on Financial Services (H. Rept. 119-132).
  • Committee Votes: The bill was ordered to be reported with a vote of 29-21 on May 21, 2025.
  • Next Steps: The bill has been placed on the Union Calendar for further consideration.

Conclusion

The Bank Failure Prevention Act of 2025 represents a significant shift in how acquisition applications are processed for depository institutions, aiming to reduce delays and enhance regulatory clarity. By establishing clear timelines and limiting third-party influence, the bill seeks to foster a more efficient banking environment.

Compiled from official sources — confirm details with the bill’s official record.

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