Committee advances study bill to examine barriers facing rural depository institutions

Rep. Ralph Norman (as sponsor identified in the clerk's reading) introduced HR 6536, the Rural Depository Revitalization Study Act, which would require federal prudential regulators to jointly study ways to improve growth, capital adequacy and profitability of rural depository institutions and identify regulatory barriers to new de novo charters.

Norman told the committee the measure seeks to determine whether supervisory expectations and heightened capital requirements have made de novo formation slower, more expensive and more uncertain, and he argued a focused study would produce recommendations and preserve safety-and-soundness while encouraging competition.

Ranking Member Waters offered an amendment to require specific analysis of community development financial institutions (CDFIs) and minority depository institutions (MDIs). Waters and other Democrats said CDFIs and MDIs play a critical role in providing credit to underserved areas and should be explicitly analyzed. Opponents, including members who said CDFIs are already covered by the bill's function-based approach, argued the amendment could create redundancy or inconsistent carve-outs. The amendment failed by voice vote.

The committee subsequently adopted the amendment in the nature of a substitute and ordered the bill favorably reported; a recorded vote on final reporting was requested and postponed for roll-call tabulation.

Action: The committee ordered HR 6536, as amended, favorably reported to the House (committee recorded votes later showed the amendment and reporting actions were carried; clerk later reported an aye vote tally of 50-0 on the amendment to HR 6536).