Federal Legislation
Congress Adjusts Bank Regulatory Thresholds
February 25, 2026
Congress has passed the Tailoring and Indexing Enhanced Regulations Act of 2025 (H.R. 6553), which modifies asset-size thresholds for bank regulatory requirements by indexing them to nominal GDP. This legislation primarily affects Category II, III, and IV banks by increasing thresholds for enhanced prudential standards and related regulations. It mandates automatic adjustments every five years to reflect economic growth and inflation, aiming to better tailor regulatory burdens to current economic conditions.
- Why this matters: Federal financial regulators including the Federal Reserve, OCC, and FDIC will need to update supervisory frameworks and compliance monitoring to align with the new indexed thresholds.
- Procurement and compliance teams supporting banking institutions should anticipate changes in regulatory reporting and risk management requirements tied to these adjusted thresholds.
- Organizations providing regulatory technology, consulting, or compliance services may find new opportunities to assist banks in adapting to evolving prudential standards.
- The periodic automatic adjustment mechanism signals ongoing procurement needs for updated regulatory tools and services every five years, emphasizing the importance of long-term strategic planning in this sector.
I fully recognize that we made mistakes, agreeing that the Fed's supervisory and regulatory shortcomings contributed to SVB's failure.
— Fed Chair Powell
Agencies
Board of Governors of the Federal Reserve System, Office of the Comptroller of the Currency, Federal Deposit Insurance Corporation, Financial Stability Oversight Council, Department of Commerce
Locations
Sources
- H. Rept. 119-532 - TAILORING AND INDEXING ENHANCED REGULATIONS ACT OF 2025 · congress · Feb 25