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Committee backs bill to raise asset threshold for extended bank exams to $6 billion
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Summary
The Financial Services Committee voted to report HR 44 78, the Tailored Regulatory Updates for Supervisory Testing (TRUST) Act, which would raise the asset threshold for qualifying insured depository institutions to receive an 18‑month examination cycle from $3 billion to $6 billion, targeting well‑managed community banks.
Representative Moore explained HR 44 78, the Tailored Regulatory Updates for Supervisory Testing or TRUST Act of 2025, as an update to the Federal Deposit Insurance Act that would raise the consolidated asset threshold from $3 billion to $6 billion for well‑managed insured depository institutions to qualify for an 18‑month exam cycle instead of annual examinations.
Supporters said the change would preserve the share of community banks that qualify for less frequent examinations in light of inflation and industry consolidation and would not reduce safety and soundness standards for institutions that qualify. Representative Torres and others cosponsored and praised the bipartisan nature of the measure. The bill’s proponents emphasized that eligibility would remain limited to well‑capitalized, well‑managed banks with no recent enforcement actions.
The committee ordered HR 44 78 favorably reported to the House by voice/recorded vote (ayes 49, nays 0). Members noted the bill was narrower than other proposals that would have raised thresholds much higher, and that regulators retain authority to increase exam frequency for any institution that warrants closer supervision.
