S. 427 · Where this bill is now
In committee
Introduced in the Senate, Feb 5, 2025
What this bill does
In plain words · AI-written from the official summaryMakes bank rules fit individual institutions
Ever wondered if banking rules are one-size-fits-all? This bill says federal financial regulators need to tailor their rules and actions to fit the specific risk profile and business model of each financial institution, so smaller banks aren't burdened by rules meant for larger ones. It also reduces some reporting requirements for community banks and requires regulators to report back to Congress on how they're making these changes.
How it affects you
If you bank at a community bank, you might see some changes as your bank faces less paperwork and fewer regulatory burdens. The bill mainly affects community banks and other smaller financial institutions directly, with regulators expected to adjust their oversight approach based on each bank's size and risk level. For most regular customers, the main impact would be how these changes shape your local bank's operations and costs.
Read the official summary (Introduced in Senate, Feb 5, 2025)
Taking Account of Institutions with Low Operation Risk Act of 2025 or the TAILOR Act of 2025
This bill addresses the supervision of financial institutions.
Federal financial regulatory agencies must (1) tailor any regulatory actions so as to limit burdens on the institutions involved, with consideration of the risk profiles and business models of those institutions; and (2) report to Congress on specific actions taken to do so, as well as on other related issues. The bill's tailoring requirement applies to future regulatory actions and to regulations adopted within the last seven years.
The bill also reduces certain reporting requirements for community banks eligible for a simplified capital leverage ratio.
Finally, federal banking agencies must report on the modernization of bank supervision, including examiner workforce and training and statutory changes necessary to achieve more effective supervision.
Written by AI (Claude) using only the official summary by the Congressional Research Service, the Library of Congress’s nonpartisan research staff. It can miss nuance, so check the official summary and the bill text for details.
1st SessionS. 427
A BILL
TAILOR Act of 2025
Sponsor: Sen. Mike Rounds (R-SD) · Introduced Feb 5, 2025 · Finance and Financial Sector · 1 version of the text
Sources: Congress.gov actions and votes · bill text from GovInfo · latest official action Feb 5, 2025: “Read twice and referred to the Committee on Banking, Housing, and Urban Affairs.”