Closing the Enhanced Prudential Standards Loophole Act
Sponsored By: Representative Waters
Introduced
Summary
Would extend enhanced supervision and prudential standards to large banks that do not have a bank holding company. It closes a regulatory gap by applying oversight based on a bank's total consolidated assets rather than whether it has a holding company.
Show full summary
- Standalone large banks: Banks without a bank holding company that have the same total consolidated assets as covered bank holding companies would be subject to the same Section 165 enhanced supervision and prudential requirements. This brings similarly sized standalone banks into parity with holding‑company banks.
- Regulators: Agencies would apply the existing Section 165 framework to a broader set of banks. The text does not add new funding, phase‑in periods, or extra enforcement tools beyond the current law.
- Financial stability and customers: By closing this loophole the bill aims to reduce uneven oversight among similarly sized institutions and align regulatory treatment across the banking sector.
Your PRIA Score
Personalized for You
How does this bill affect your finances?
Sign up for a PRIA Policy Scan to see your personalized alignment score for this bill and every other piece of legislation we track. We analyze your financial profile against policy provisions to show you exactly what matters to your wallet.
Bill Overview
Analyzed Economic Effects
1 provisions identified: 0 benefits, 0 costs, 1 mixed.
Stricter rules for standalone banks
This bill would apply the enhanced supervision and prudential standards in Section 165 to banks that do not have a bank holding company. It would apply when a standalone bank has the same amount of total consolidated assets as a bank holding company. If enacted, comparable standalone banks would face the same supervision and rules as bank holding companies, starting upon enactment. The bill would not add new funding, a phase-in period, or new enforcement tools beyond the existing Section 165 framework. Affected banks would likely face higher compliance costs, and households would see indirect benefits from stronger financial stability.
Sponsors & CoSponsors
Sponsor
Waters
CA • D
Cosponsors
There are no cosponsors for this bill.
Roll Call Votes
No roll call votes available for this bill.
View on Congress.govTake It Personal
Get Your Personalized Policy View
Start a Free Government Policy Watch to see how policy affects your household, then upgrade to PRIA Full Coverage for year-round monitoring.
Already have an account? Sign in