Promoting New Bank Formation

(a) Phase-In of capital standards Notwithstanding any other provision of law, the Federal banking agencies shall issue rules that provide for a 3-year phase-in period for a depository institution or depository institution holding company to meet any Federal capital requirements that would otherwise be applicable to the depository institution or depository institution holding company, beginning on— (1) the date on which the depository institution became an insured depository institution; or (2) in the case of a depository institution holding company, the date on which the depository institution subsidiary of the depository institution holding company became an insured depository institution. (b) Changes to business plans (1) In general During the 3-year period beginning on the date on which a depository institution became an insured depository institution, if, as a condition of approval, the appropriate Federal banking agency imposes a requirement to obtain prior approval before deviating from a business plan, the insured depository institution or its depository institution holding company may request to deviate materially from a business plan that has been approved by the appropriate Federal banking agency by submitting a request to such agency pursuant to this section. (2) Review of changes The appropriate Federal banking agency shall, not later than the end of the 30-day period beginning on the receipt of a request under paragraph (1)— (A) approve, conditionally approve, or deny such request; and (B) notify the applicant of such decision and, if the agency denies the request— (i) provide the applicant with the reason for such denial; and (ii) suggest changes to the request that, if adopted, would allow the agency to approve such request. (3) Result of failure to act If an appropriate Federal banking agency fails to approve or deny a request within the 30-day period required under paragraph (2), such request shall be deemed to be approved. (c) Rural community depository institution leverage ratio (1) In general During the 3-year period beginning on the date on which a rural depository institution became an insured depository institution, the Community Bank Leverage Ratio for the rural community bank shall be the lesser of— (A) the Community Bank Leverage Ratio adopted by the Federal banking agencies pursuant to section 201(b)(1) of the Economic Growth, Regulatory Relief, and Consumer Protection Act (12 U.S.C. 5371 note); or (B) 7.5 percent. (2) Phase-In authority The Federal banking agencies shall issue rules to phase-in the Community Bank Leverage Ratio described under paragraph (1) with respect to a rural depository institution by setting lower Community Bank Leverage Ratio percentages during the first 2 years of the 3-year period described under paragraph (1). (3) Definitions In this subsection: (A) Community Bank Leverage Ratio The term Community Bank Leverage Ratio has the meaning given that term under section 201(a) of the Economic Growth, Regulatory Relief, and Consumer Protection Act (12 U.S.C. 5371 note). (B) Rural area The term rural area means— (i) a county that is neither in a metropolitan statistical area nor in a micropolitan statistical area that is adjacent to a metropolitan statistical area, as those terms are defined by the Office of Management and Budget and as they are applied under applicable Urban Influence Codes, established by the Department of Agriculture’s Economic Research Service; or (ii) a census block that is not in an urban area, as defined by the Bureau of the Census using the latest decennial census of the United States. (C) Rural depository institution The term rural depository institution means a depository institution— (i) with total consolidated assets of less than $10,000,000,000; and (ii) located in a rural area. (d) Agricultural loan authority for Federal savings associations Section 5(c) of the Home Owners’ Loan Act (12 U.S.C. 1464(c)) is amended— (1) in paragraph (1), by adding at the end the following: (V) Agricultural loans Secured or unsecured loans for agricultural purposes.; and (2) in paragraph (2)(A), by striking business, or agricultural and inserting or business. (e) Study on de novo insured depository institutions (1) Study The Federal banking agencies shall, jointly, carry out a study on— (A) the principal causes for the low number of de novo insured depository institutions in the 10-year period ending on the date of enactment of this Act; and (B) ways to promote more de novo insured depository institutions in areas currently underserved by insured depository institutions. (2) Report to Congress Not later than the end of the 1-year period beginning on the date of enactment of this Act, the Federal banking agencies shall, jointly, issue a report to Congress the Committee on Financial Services of the House of Representatives and the Committee on Banking, Housing, and Urban Affairs of the Senate containing all findings and determinations made in carrying out the study required under paragraph (1). (f) Definitions In this section, the terms appropriate Federal banking agency, depository institution, depository institution holding company, Federal banking agency, and insured depository institution have the meaning given those terms, respectively, under section 3 of the Federal Deposit Insurance Act.Act (12 U.S.C. 1813).