To help expand access to banking services and promote financial inclusion, Rep. Andy Barr (R-Ky.) last week introduced H.R. 2561, the Promoting Access to Capital in Underbanked Communities Act of 2021, which would establish a three-year phase-in period for new banks to comply with federal capital standards, among other provisions designed to promote de novo formation. Barr introduced a similar bill in the last Congress.
The American Bankers Association welcomed the bill’s introduction. “By making it easier for new banks to launch in rural areas of the country, this legislation expands banking access for individuals and businesses, which translates into greater economic activity and growth,” the association said. “The temporary regulatory adjustments provided in this bill are a reasonable step to encourage de novo formation that will benefit local economies.”