Rural Depositories Revitalization Study Act (HR 6536)

Summary

The Rural Depositories Revitalization Study Act (HR 6536) requires the federal banking agencies (Federal Reserve, OCC, FDIC) to jointly conduct a study and report to Congress on:

1. Methods to improve the growth, capital adequacy, and profitability of depository institutions that primarily serve rural areas.
2. Federal statutes or regulations that limit the identified methods or the establishment of new rural depository institutions.

The report to Congress is due within 1 year of the bill's enactment.

Key Provisions

• Directs the federal banking agencies to jointly study ways to boost the performance of rural banks and identify any regulatory barriers.
• Requires the agencies to report their findings and recommendations to Congress within 1 year.
• Defines "rural" using the existing regulatory definition from the Truth in Lending Act.
• Defines "depository institution" broadly to include banks, thrifts, and credit unions.

Potential Impact

This bill aims to address the long-term challenges facing rural financial institutions, which have faced declining numbers and profitability in recent decades. By requiring the federal regulators to comprehensively study the issue, the bill could lead to legislative or regulatory changes to support the growth and viability of rural depository institutions.

Strengthening rural banks could improve access to financial services and credit for rural communities, supporting economic development in these areas. The study may also identify ways to facilitate the formation of new rural banks, reversing a decades-long decline in de novo bank creation.

Overall, the bill reflects Congressional interest in ensuring the continued availability of banking services in rural America.