119-HR-4437 Journalist Public Summary
119 · HR 4437 SMART Act of 2025
H.R. 4437 (the SMART Act of 2025) would let well‑managed, well‑capitalized banks and credit unions under $6 billion in assets alternate limited‑scope exams and combine certain exams to cut disruption, while keeping regulators’ authority to conduct extra reviews; the House passed it by voice vote on May 12, 2026. (congress.gov)
Public Summary — H.R. 4437 (SMART Act of 2025)
1) Headline Summary: A bipartisan bill to streamline how small, well‑run banks and credit unions are examined — aiming to reduce paperwork and on‑site disruption without curbing regulators’ power to step in — has cleared the House. (news.bloomberglaw.com)
2) What It Does: For institutions with $6 billion or less in assets that are both well managed and well capitalized, the bill would (a) alternate a limited‑scope review after each full‑scope, on‑site exam and (b) allow safety‑and‑soundness, consumer‑compliance, and IT/cybersecurity exams to be combined at the institution’s request. It excludes firms under formal enforcement actions (and certain control changes), requires agencies to write rules within 12 months, and explicitly preserves regulators’ authority to do off‑site monitoring, targeted reviews, or additional full exams whenever needed. It also directs annual reporting to Congress on examiner experience, team size, and time spent on‑site for small‑institution exams. (congress.gov)
3) Who’s For It:
- Sponsors: Rep. William Timmons (R‑SC) with Rep. Bill Foster (D‑IL) as co‑lead, framing it as targeted relief for well‑run institutions. (financialservices.house.gov)
- Community banks: Independent Community Bankers of America backed the bill; the committee advanced it 53–1. (icba.org)
- Credit unions: America’s Credit Unions supported advancing H.R. 4437 out of committee. (americascreditunions.org)
- Banking industry groups: The American Bankers Association highlighted the bill among measures it supported in markup. (bankingjournal.aba.com)
4) Who’s Against It: There’s little documented, organized opposition specific to H.R. 4437 so far; however, consumer‑advocacy groups generally warn that easing exam frequency or scope can weaken supervision and risk missing problems, especially after recent banking stresses. (bettermarkets.org)
5) What’s Next: The House passed H.R. 4437 by voice vote under suspension of the rules on May 12, 2026; the bill now moves to the Senate for consideration. (news.bloomberglaw.com)
Discussion