Main Street Capital Access Act

Improved Transparency for Bank Charters: The bill requires agencies like the OCC and NCUA to publish annual reports on the number of charter applications and the time it takes to approve them, providing clarity on the application process (Sec. 102).

Increased Support for Community Development: By updating the CDFI Bond Guarantee Program, the bill aims to provide community development financial institutions with a sustainable source of long-term capital to increase economic opportunity (Sec. 104).

Reduced Regulatory Burdens for Smaller Institutions: The act directs agencies to tailor regulations based on an institution's risk profile and business model to limit costs and human resource burdens (Sec. 201). It also establishes reduced reporting requirements for banks eligible for the Community Bank Leverage Ratio (Sec. 201).

Streamlined Bank Examinations: Well-managed and well-capitalized institutions with $6 billion or less in assets would be eligible for alternating limited-scope examinations, reducing the burden of frequent full-scope exams (Sec. 303).

Fairer Supervision through Objective Standards: The bill seeks to amend the CAMELS rating system to use more articulable, clear, and reviewable criteria, which reduces reliance on subjective examiner judgment (Sec. 301).

Enhanced Oversight of Examinations: The establishment of an Office of Independent Examination Review provides a way for financial institutions to obtain an independent review of material supervisory determinations (Sec. 302).

Greater Predictability in Mergers: The bill aims to modernize bank competition by allowing certain mergers involving institutions with less than $10 billion in assets to proceed without certain monopoly considerations, provided they do not leave a metropolitan area without a physical banking presence (Sec. 601).

Improved Liquidity Access: A required review of the Federal Reserve's discount window is intended to improve its effectiveness in providing liquidity to financial institutions, especially during times of financial stress (Sec. 501).

Increased Efficiency in Merger Processing: The bill establishes a 120-day deadline for the Board to grant or deny applications; if the Board fails to act within this timeframe, the application is deemed granted (Section 604(a)).

Reduced Banking Concentration: The "least cost resolution exception" allows the Corporation to choose resolution methods that are not the least costly to the Deposit Insurance Fund if it helps limit the concentration of the United States banking system in global systemically important banking organizations (Section 701(a)(i)(II)).

Support for Infrastructure and Housing: The bill updates merchant banking regulations to ensure the permitted holding period for such investments is not less than 15 years, which may support long-term projects (Section 801(a)).

Enhanced Financial Innovation and Access: Required studies seek to understand how partnerships between banks or credit unions and financial technology companies can improve technological capabilities, lower compliance burdens, and provide access to diverse funding sources (Section 802(a) and (b)).

Potential Removal of Permanent Authorities: Banking agencies may determine that certain authorities are not causing adverse effects on community banks, which could lead to those authorities becoming temporary rather than permanent (Sec. 101).

Increased Regulatory Workload for Agencies: The bill mandates various new studies, annual reports, and periodic reviews across multiple agencies, including reviews of discount window operations and GAO evaluations of regulatory tailoring (Sec. 201, Sec. 501).

Potential Financial Costs for Institutions: While seeking to reduce burdens, the bill establishes that regulatory agencies may collect reasonable fees for processing and issuing written advice (Sec. 302).

New Administrative Processes: The creation of the Office of Independent Examination Review and its associated Board involves new staffing and costs, which are partially funded by assessments on Federal financial institutions regulatory agencies (Sec. 302).

Potential Risks to the Deposit Insurance Fund: The "least cost resolution exception" allows the Corporation to select methods more expensive than the least costly alternative if the potential additional risks are outweighed by benefits like limiting banking concentration (Section 701(a)(i)(II)).

Increased Financial Stability Risks for Certain Mergers: While providing exceptions for banks in default or danger of default to prevent economic disruption, these transactions are handled under specific determination requirements (Section 703(a)).

Reduction in Federal Reserve Surplus: The bill reduces the dollar amount specified under the Federal Reserve Act by $425,000,000, effective September 1, 2036 (Section 803(a)).