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119-hr-4437119th CongressWALLET

SMART Act of 2025

Sponsored By: Representative Timmons, William R. [R-SC-4]

Passed House

Summary

Cuts the frequency of on-site exams for well-run, well-capitalized small banks and credit unions while keeping agency oversight and new rules and reporting requirements to guard safety and soundness.

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  • Small insured depository institutions and insured credit unions with $6 billion or less in consolidated assets would get alternating limited-scope examinations after a full-scope, on-site exam. Relief does not apply if the institution faces a formal enforcement action or has had a change in control since its last full exam.
  • Federal banking agencies and the National Credit Union Administration would have 12 months to write rules that define limited-scope exams, set procedures for reviewing institutions with material changes or noncompliance, and explain when fuller oversight is needed.
  • On-site exams for these institutions must be led by experienced examiners, use fewer examiners and less time, be scheduled at convenient times, and give advance notice of issues. The NCUA must report to Congress and provide aggregate data on examiner experience, examiner counts, and time spent for on-site exams.

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Bill Overview

Analyzed Economic Effects

2 provisions identified: 0 benefits, 0 costs, 2 mixed.

Fewer on-site exams for small banks

If enacted, small banks with $6 billion or less in assets that are well managed and well capitalized under existing definitions would get lighter on-site exams. After a full exam, the next exam would be limited-scope. On request, agencies would combine two or three exams (safety and soundness, consumer rules, and IT/cybersecurity) into one visit. Relief would not apply if the bank is under a formal enforcement action or if control changed since the last full exam. Agencies would set rules within 12 months and keep authority for off-site monitoring and extra full exams when needed. Exams would follow practice standards—experienced leads, fewer examiners and time on-site, convenient timing, and advance notice—and agencies would report to Congress on examiner experience, team size, and time on-site.

Fewer on-site exams for small credit unions

If enacted, insured credit unions with $6 billion or less in assets that are well managed and well capitalized under existing definitions would get lighter on-site exams. After a full exam, the next exam would be limited-scope. On request, the regulator would combine two or three exams (safety and soundness, consumer rules, and IT/cybersecurity) into one visit. Relief would not apply if the credit union is under a formal enforcement action. The regulator would set rules within 12 months and keep authority for off-site monitoring and extra full exams when needed. Exams would follow practice standards—experienced leads, fewer examiners and time on-site, convenient timing, and advance notice—and the regulator would report to Congress on examiner experience, team size, and time on-site.

Sponsors & CoSponsors

Sponsor

Timmons, William R. [R-SC-4]

SC • R

Cosponsors

  • Rep. Foster, Bill [D-IL-11]

    IL • D

    Sponsored 7/16/2025

Roll Call Votes

No roll call votes available for this bill.

View on Congress.gov
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