S. 113: Promoting New Bank Formation Act of 2025
A Senate bill (S.) in the 119th U.S. Congress.
Overview
| Congress | 119th U.S. Congress (2025–2026) |
|---|---|
| Type | Senate bill (S.) |
| Originating chamber | Senate |
| Introduced | 2025-01-16 |
| Sponsor | Sen. Hyde-Smith, Cindy [R-MS] |
| Policy area | Finance and Financial Sector |
| Cosponsors | 1 |
| Latest action | 2025-01-16 — Read twice and referred to the Committee on Banking, Housing, and Urban Affairs. |
| Last updated | 2025-05-27 |
Summary
Official summary (Introduced in Senate, 2025-01-16):
Promoting New Bank Formation Act of 2025
This bill eliminates and reduces certain requirements applicable to new financial institutions, certain rural community banks, and federal savings associations.
Under the bill, federal banking agencies must issue rules allowing new financial institutions to meet capital requirements within three years. During this period, a financial institution may request to deviate from an approved business plan and the appropriate agency has 30 days to approve or deny the request.
In addition, the community bank leverage ratio—a way of evaluating debt levels—is reduced for new rural community banks. Specifically, new rural community banks must have a ratio of 8%, with a three-year phase-in of the rate. After this period, the ratio rises to its current level of 9%.
Finally, the bill removes certain restrictions to allow federal savings associations to invest in, sell, or otherwise deal in agricultural loans.
Cosponsors (1)
| Name | Party / state |
|---|---|
| Tim Sheehy | R MT 2025-01-27 |
Full text & official record
The official bill text, section-by-section summary, amendments, committee reports, and the complete legislative timeline for S. 113 are published by Congress on congress.gov.
Frequently asked questions
What is S. 113?
S. 113 is a Senate bill (S.) introduced in the 119th U.S. Congress, originating in the Senate. Official title: Promoting New Bank Formation Act of 2025.
Where can I read the full bill text?
The full text, cosponsors, amendments, and legislative status for S. 113 are available on congress.gov.
Bill data: congress.gov API (official congressional records).