H.R. 3380 — TAILOR Act of 2025

This section requires Federal financial institutions regulatory agencies—i.e., the Office of the Comptroller of the Currency, Board of Governors of the Federal Reserve System, Federal Deposit Insurance Corporation, National Credit Union Administration, and Bureau of Consumer Financial Protection—to consider the risk profiles and business models of institutions or classes of institutions when issuing any proposed, interim, or final rule or regulation (i.e., regulatory action) after enactment and to tailor such actions to limit regulatory burdens (including costs and human resource allocation) appropriate to those profiles and models. In tailoring, agencies must consider (1) the aggregate effect of regulations on institutions' ability to serve customers and local markets; (2) potential implementation or third-party challenges that could undercut tailoring; and (3) the authorizing statute, congressional intent, and policy objectives; agencies must disclose their application of these requirements in every notice of proposed rulemaking and final rule. Agencies must submit annual reports to the Senate Committee on Banking, Housing, and Urban Affairs and House Committee on Financial Services, beginning one year after enactment, detailing tailoring actions taken. The section further requires agencies to review final regulations issued under statutes enacted from 15 years before this bill's introduction in the House through enactment, apply the tailoring requirements to those regulations, and revise any such regulations within three years of enactment.

This section directs the appropriate federal banking agencies to promulgate regulations establishing reduced reporting requirements on the first and third quarterly Call Reports (i.e., Reports of Condition and Income under 12 U.S.C. 1817(a)) for all banks eligible for the Community Bank Leverage Ratio. (As background, the Community Bank Leverage Ratio, established by the Economic Growth, Regulatory Relief, and Consumer Protection Act, allows qualifying banks—generally those with $10 billion or less in total consolidated assets, limited off-balance-sheet exposures, and minimal trading assets or derivatives—to meet capital requirements using a simple tangible equity to average total consolidated assets leverage ratio of at least 9%.)

This section directs the appropriate Federal banking agencies, as defined in section 3 of the Federal Deposit Insurance Act (12 U.S.C. 1813), in consultation with State bank supervisors, to submit to the Senate Committee on Banking, Housing, and Urban Affairs and the House Committee on Financial Services, not later than 18 months after the date of enactment, a report on the modernization of bank supervision that addresses (1) changing bank business models, (2) examiner workforce and training, (3) the structure of supervisory activities within banking agencies, (4) improving bank-supervisor communication and collaboration, (5) the use of supervisory technology, (6) supervisory factors uniquely applicable to community banks, and (7) changes in statutes necessary to achieve more effective supervision.