H.R. 6554 — Community Bank Representation Act

This section revises Federal Reserve Board of Governors membership and supervision requirements related to community banks as follows: (1) eliminates the $10 billion total asset threshold from the requirement that the President appoint at least one member with demonstrated primary experience working in or supervising community banks; (2) requires the Board Chairman to designate one such member to develop policy recommendations and oversee supervision and regulation, in consultation with the Vice Chairman for Supervision and any other relevant Board members, of Board-supervised banking organizations with less than $17 billion in total assets; (3) requires that designated member, if different from the Vice Chairman for Supervision, to testify semi-annually before the Senate Banking Committee and House Financial Services Committee on such supervision efforts; (4) directs the Board to annually adjust relevant dollar thresholds (i.e., the $17 billion figure and cross-referenced amounts in 12 U.S.C. 242, 247b, and FFIEC Act §1004(a)(3)) by the percentage increase in nominal U.S. gross domestic product for covered years, using Bureau of Economic Analysis data; and (5) requires the Board Governor on the Federal Financial Institutions Examination Council to consult with the designated community bank member. (As background, the seven-member Board, appointed by the President for 14-year terms, sets monetary policy and supervises banking organizations; community banks are typically smaller institutions serving local markets.)