H.R. 4544: American Access to Banking Act

The American Access to Banking Act aims to facilitate the creation of new, regulated financial institutions, known as de novo regulated institutions. Below are the key provisions the bill proposes:

Streamlining Application Processes

Federal financial regulatory agencies will review and simplify the application process for becoming a de novo regulated institution. This includes:

• Conducting a review of application forms to identify ways to simplify them.
• Gathering necessary information from other government sources to reduce the burden on applicants.
• Working with the Securities and Exchange Commission to evaluate how these institutions can raise capital while protecting investors.

After one year and annually thereafter for five years, these agencies will report to Congress on their actions and any recommendations for improving the application process.

Improving Communication

The bill mandates that each federal regulatory agency designate a caseworker for applicants trying to become de novo institutions. Responsibilities of the caseworker include:

• Meeting with lead organizers of the de novo institution to explain the application process.
• Serving as the primary contact for the organizing team throughout the application process.
• Ensuring continuity by allowing for the designation of new caseworkers based on staff changes.

Mentorship Programs

Federal agencies will provide a list of recently approved de novo institutions that are willing to serve as mentors to new applicants. This initiative aims to:

• Offer practical advice and insights regarding the application process.
• Encourage the sharing of best practices among new financial institutions.

Information regarding this mentorship program will be made public within one year of the bill's enactment.

Engagement with States and Stakeholders

Federal agencies will develop a plan to regularly consult with state regulators and stakeholders. This includes:

• Promoting cooperation between state and federal agencies to aid in the formation of de novo institutions.
• Engaging with current and prospective de novo institution applicants to gather feedback for potential reforms.
• Providing training materials and workshops to clarify the agencies' processes for interested parties.

Each agency will submit its engagement plan to Congress within two years, with opportunities for public comment during its development.

Definitions

The bill clarifies key terms, such as "de novo regulated institution" (newly formed entities subjected to federal oversight) and outlines the roles of federal banking agencies, state regulators, and other relevant definitions to ensure a clear understanding of the legislation's scope and requirements.

Relevant Companies

None found