Summary of H.R. 6554 - Community Bank Representation Act

Overview

The Community Bank Representation Act is a bill introduced in the U.S. House of Representatives that aims to expand the responsibilities of the member of the Federal Reserve Board of Governors with experience working in or supervising community banks.

Key Provisions

• Requires the Chairman of the Federal Reserve to select one member of the Board with demonstrated primary experience working in or supervising community banks.
• Directs this "community bank member" to:
  • Develop policy recommendations for the Board regarding supervision and regulation of banking organizations with less than $17 billion in total assets.
  • Oversee the supervision and regulation of these smaller banking organizations.
• Mandates that the community bank member, if different from the Vice Chairman for Supervision, must appear before Congressional committees for semi-annual hearings on the Board's efforts, activities, objectives, and plans for supervising and regulating community banks.
• Requires the Board to annually adjust the $17 billion asset threshold based on increases in U.S. nominal GDP.

Potential Impact

The bill is intended to ensure that the Federal Reserve's oversight and regulation of community banks (those under $17 billion in assets) is informed by the perspective and expertise of a Board member with direct experience in that sector. This could lead to policy and supervisory approaches that are better tailored to the unique needs and challenges faced by smaller, local financial institutions.

The enhanced Congressional oversight provisions are aimed at improving transparency and accountability around the Federal Reserve's community bank-related activities.

Overall, the bill seeks to elevate the role and influence of community banks within the Federal Reserve's policymaking and regulatory framework.