The U.S. House of Representatives passed legislation this week that seeks to ensure that community banks are not subject to the same examination requirements as the nation’s largest financial institutions.
H.R. 4478, the Tailored Regulatory Updates for Supervisory Testing Act of 2025 (TRUST Act), will raise the asset limit for community banks that qualify for a longer 18-month examination cycle from $3 billion to $6 billion. Currently, most banks are examined every 12 months, but well-managed institutions can qualify for a longer cycle if they have a good track record and aren’t under any enforcement actions.
The bill was introduced by Reps. Tim Moore (R-NC) and Ritchie Torres (D-NY), both of whom serve on the House Financial Services Committee.
“Passing the TRUST Act is a big step in easing regulations on small community banks, so they can serve their customers instead of dealing with the same rules meant to keep Wall Street giants in line,” Moore said. “This bill is a commonsense measure to modernize outdated laws, while still ensuring responsible banking practices and strong oversight of our financial system. The TRUST Act means well-managed small-town banks will spend less time with federal paperwork, and more time helping families.”
By reducing the frequency of examinations, the TRUST Act allows banks to spend more time serving their customers and communities.
This bill is supported by the American Bankers Association (ABA), the North Carolina Bankers Association (NCBA), and the Independent Community Bankers of America (ICBA).