Removes reputational risk from bank supervision and bars federal banking regulators from examining, rating, or taking enforcement action against banks based on it, while requiring regulators to tailor their rules to each institution's risk profile and business model.

Official title: FIRM Act

Next stop Senate floor: awaiting a vote

Timeline each lane is a chamber; dates pull from congress.gov actions

Senate

Introduced 06-MAR-2025

Referred 06-MAR-2025

Approved by committee 13-MAR-2025

Reported 18-MAR-2025

On the calendar 18-MAR-2025

Key points

Requires each federal banking agency to remove references to reputational risk from its guidance, rules, and examination manuals.
Prohibits agencies from issuing rules, conducting examinations, making ratings decisions, or taking enforcement actions based on reputational risk.
Requires agencies to tailor regulations to each institution's risk profile and business model and to review regulations issued in the prior seven years.
Requires shorter call reports for community banks eligible for the Community Bank Leverage Ratio and a report to Congress on modernizing bank supervision.

AI-generated from the Reported to Senate text of 18-MAR-2025 · verify · report an error

Official CRS summary

Covers an older version. The newest CRS summary describes the bill as of "Introduced in Senate" (06-MAR-2025); the text has changed since (Reported to Senate, 18-MAR-2025).

CRS is the Library of Congress's nonpartisan research office. Read it on congress.gov

Committee referrals (1)

Banking, Housing, and Urban Affairs Committee (Senate)

Policy area

Finance and Financial Sector

Sponsor Tim Scott (R-SC) Cosponsors · 12

■ 12 R

12 Republicans

congress.gov page Reported to Senate (18-MAR-2025) Introduced in Senate (06-MAR-2025)