Supervisory Modifications for Appropriate Risk-Based Testing Act of 2025

Floor Speech

Mr. Speaker, I rise in support of H.R. 4437, the Supervisory Modifications for Appropriate Risk-based Testing Act of 2025, sponsored by Representative Timmons and our Subcommittee on Financial Institutions Ranking Member (Mr. Foster). This is a good bipartisan bill that will support our community banks and our credit unions.

I have heard many community banks and credit unions raise concerns about their bank exams and ask how they might be streamlined. The bill provides these institutions with alternating full-scope and limited- scope opportunities.

In order to qualify for this relief, community banks and credit unions must be well capitalized and well managed. For example, that means that in order to receive this relief, they cannot be subject to an enforcement order.

The bill also clarifies that regulators retain the discretion to do additional exams if something unexpected develops related to safety and soundness and ensure that these institutions are complying with the law.

I also appreciate that Chairman Hill and the sponsors worked with me to include my amendment to require the regulators have examiners with significant experience before they conduct exams of smaller banks and credit unions.

My amendment would also minimize the number of examiners and time at the institution to carry out an onsite exam to reduce the burden on smaller institutions.

Finally, Congress must receive statistics from the regulators every year about these changes so we can understand how they are being implemented. If Members want to do something meaningful to help our community banks and credit unions, then I urge them to support this bill.
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Ms. WATERS. Mr. Speaker, in closing, I yield myself the balance of my time.

Mr. Speaker, there is a lot that Congress can do to help our community financial institutions. This includes taking up deposit insurance reform bills like the ones that I and my committee Republicans have put forward. Increasing deposit insurance would help community banks and credit unions better compete for small businesses' deposits.

I appreciate that unlike some of the other bills Republicans have tried to advance this Congress, which were either handouts to our largest banks or rollbacks of vital consumer protections, H.R. 4437 focuses on helping our community banks and credit unions.

Mr. Speaker, I again urge my colleagues to support this bill, and I yield back the balance of my time.

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