H.R. 6536: Rural Depositories Revitalization Study Act

The bill titled the Rural Depositories Revitalization Study Act focuses on improving the conditions for depository institutions, such as banks and credit unions, that primarily serve rural areas in the United States. Here’s a breakdown of what the bill proposes:

Study on Rural Depository Institutions

The bill mandates that federal banking agencies jointly conduct a study that aims to:

• Identify methods to enhance the growth, financial stability (capital adequacy), and profitability of banks and credit unions that operate mainly in rural regions.
• Determine if there are any existing federal laws or regulations that hinder these improvements or block the establishment of new depository institutions in rural areas.

Reporting Requirements

Within six months after the bill becomes law, the federal banking agencies are required to present a report to Congress. This report will summarize the findings and conclusions from the study mentioned above.

Key Terms Defined

• Depository Institution: This term refers to entities that accept deposits and is defined by existing federal law.
• Federal Banking Agencies: The agencies involved include the Board of Governors of the Federal Reserve System, the Comptroller of the Currency, and the Federal Deposit Insurance Corporation.

Overall Goal

The main objective of the bill is to enhance the operational environment for rural financial institutions, potentially leading to improved services for rural communities and encouraging the establishment and growth of banks and credit unions in less populated areas.

Relevant Companies

None found