H.R. 3329, To Enhance the Ability of Community Financial Institutions to Foster Economic Growth and Serve their Communities, Boost Small Businesses, Increase Individual Savings, and for other purposes

H.R. 3329

To Enhance the Ability of Community Financial Institutions to Foster Economic Growth and Serve their Communities, Boost Small Businesses, Increase Individual Savings, and for other purposes

Date
May 6, 2014 (113th Congress, 2nd Session)

Staff Contact
David Smentek

Floor Situation

On Tuesday, May 6, 2014, the House will consider H.R. 3329, a bill to Enhance the Ability of Community Financial Institutions to Foster Economic Growth and Serve their Communities, Boost Small Businesses, Increase Individual Savings, and for other purposes, under a suspension of the rules.  H.R. 3329 was introduced on October 23, 2013 by Rep. Blaine Luetkemeyer (R-MO) and was referred to the Committee on Financial Services, which ordered the bill reported by voice vote.

Bill Summary

H.R. 3329 directs the Board of Governors of the Federal Reserve System to amend the Small Bank Holding Company (BHC) Policy Statement on Assessment of Financial and Managerial Factors to revise certain regulations related to bank holding companies (BHCs).  Under current regulations, financial institutions that: 1) have less than $500 million in assets; 2) are not be engaged in any nonbanking activities involving significant leverage; and 3) do not have a significant amount of outstanding debt that is held by the general public are subject to less-stringent regulatory standards when acquiring other financial institutions.  Current regulations allow small BHCs to incur greater amounts of debt than larger institutions in order to acquire other banks.  This legislation amends this policy statement to increase threshold from $500 million to $1 billion and would allow savings and loan holding companies to qualify.

Cost

CBO estimates the H.R. 3329 would have no significant budgetary effect.[1]

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[1] http://www.cbo.gov/publication/45134

Additional Information

For questions or further information contact the GOP Conference at 5-5107.