SMART Act of 2025
Sponsored By: Representative Timmons
Passed House
Summary
Creates targeted examination relief for well-managed, well-capitalized small banks and credit unions while tightening how exams are run and reported. The law lets certain institutions face fewer on-site full exams and requires agencies to standardize examination practices and report results to Congress.
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- Small insured depository institutions with consolidated assets of $6 billion or less get an affirmative exam-relief path where, after a full-scope on-site exam, the next exam must be a limited-scope exam and agencies can combine multiple exam types on request. Exceptions apply for formal enforcement actions or a change in control.
- Insured credit unions with $6 billion or less follow the same alternating limited-scope schedule under the National Credit Union Administration, using the law’s definitions of “well capitalized” and “well managed.”
- Federal banking agencies and the NCUA must issue implementing rules within 12 months and follow new on-site practices: experienced lead examiners, fewer examiners, less time on-site, convenient scheduling, and advance notice of issues. Agencies must report annually to Congress with aggregate data on examiner experience, examiner counts, time on-site, and compliance with these provisions.
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Bill Overview
Analyzed Economic Effects
2 provisions identified: 2 benefits, 0 costs, 0 mixed.
Lighter exams for small banks
If enacted, well managed banks with $6 billion or less in assets would get exam relief. After a full on-site exam, the next exam would be limited in scope. On request, their federal regulator would combine safety, consumer, and IT/cyber exams into one visit. Lead examiners would have significant experience. Agencies would limit examiner numbers and time on-site, schedule at convenient times, and give advance notice of issues. This relief would not apply if the bank is under a formal enforcement action or if control changed since the last full exam. Agencies would issue rules within 12 months and report each year to Congress on examiner experience, examiner counts, and time on-site. Agencies would still be able to do off-site monitoring and extra full exams when needed for safety or compliance.
Lighter exams for small credit unions
If enacted, well managed credit unions with $6 billion or less in assets would get exam relief. After a full on-site exam by the National Credit Union Administration, the next exam would be limited in scope. On request, the agency would combine safety, consumer, and IT/cyber exams into one visit. Lead examiners would have significant experience. The agency would limit examiner numbers and time on-site, schedule at convenient times, and give advance notice of issues. This relief would not apply if the credit union is under a formal enforcement action. The agency would issue rules within 12 months and report each year to Congress on examiner experience, examiner counts, and time on-site. The agency would still be able to do off-site monitoring and extra full exams when needed.
Sponsors & CoSponsors
Sponsor
Timmons
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