Bank Failure Prevention Act of 2025

Expedited Approval Process: The bill requires agencies to grant or deny applications within 90 days of the initial submission, which creates a faster timeline for financial institutions (Section 2(a)(C)(i), 2(b)(8)(A), and 2(c)(15)(A)).

Automatic Approval as a Backstop: If a regulatory agency fails to act on an application within the 90-day deadline, the application is automatically considered granted (Section 2(a)(C)(ii), 2(b)(8)(B), and 2(c)(15)(B)).

Standardized Communication: The bill requires agencies to notify applicants within 30 days whether their application record is complete or what is missing, providing clearer guidance to the applicants (Section 2(a)(B)(i), 2(b)(7)(A), and 2(c)(14)(A)).

Limiting Regulatory Scope for Completeness: When determining if a record is complete, agencies may only use information provided directly by the applicant, preventing them from basing these determinations on third-party reports or views (Section 2(a)(B)(iv), 2(b)(7)(D), and 2(c)(14)(D)).

Reduced Regulatory Review Time: The deadline for a determination is set at 90 days from the initial submission, regardless of whether the record is complete (Section 2(a)(C)(i), 2(b)(8)(A), and 2(c)(15)(A)).

Pressure on Agency Decision-Making: Because applications are "deemed granted" if no decision is made within the 90-day window, agencies face a strict deadline to grant or deny requests (Section 2(a)(C)(ii), 2(b)(8)(B), and 2(c)(15)(B)).