Community banks and credit unions with $6 billion or less in consolidated assets would receive examination relief under a bill from Reps. Timmons and Foster, provided they are well-managed and well-capitalized. Federal banking agencies would have to alternate full-scope on-site examinations with limited-scope examinations and, on request, combine separate safety-and-soundness, consumer-compliance, and IT/cybersecurity exams into a single visit. The bill also requires examiners to be experienced, to minimize team size and on-site time, to schedule at convenient times, and to give institutions advance notice of issues. Federal banking agencies would have to report annually on their compliance and examination practices.
Corporate Benefits
- Examination relief for community banks and credit unions — alternating limited-scope exams for institutions $6B and under
- Combined-examination right — banks may request safety, compliance, and IT exams be performed together
Transparency & Accountability
- Annual reporting on examination practices — required from each federal banking agency
Congressional Summary
Supervisory Modifications for Appropriate Risk-based Testing Act of 2025 or the SMART Act of 2025This bill limits the scope of certain examinations and combines oversight procedures for certain small depository institutions and credit unions.Specifically, depository institutions and credit unions that are considered well-capitalized and well-managed (per their most recent examination) with assets of $6 billion or less must receive a limited-scope examination, as determined by the appropriate federal regulator, in the year following a full-scope examination. In addition, upon request by the depository institution or credit union, the regulator must combine separate compliance examinations (e.g., safety and soundness examinations and information technology examinations) and perform them at the same time.The bill provides exceptions for recently acquired depository institutions and for depository institutions and credit unions subject to certain formal enforcement proceedings or orders.
Legislative Subjects
Details
- Congress
- 119th
- Chamber
- House
- Status
- summarized
- Action
- Introduced in House
- Action Date
- 2025-07-16
- Date Added
- 2026-05-08
- Source
- Congress.gov →
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