TRUST Act of 2025
The TRUST Act of 2025 (Tailored Regulatory Updates for Supervisory Testing Act) proposes a modest change to how the Federal banking agencies regulate well-managed insured depository institutions. Specifically, it raises the asset-size threshold used to identify banks that can be on a lighter examination cycle. The bill amends the Federal Deposit Insurance Act to allow federal banking agencies to examine qualifying insured depository institutions with under $6 billion in total assets at least once every 18 months. The short title and main change are straightforward: increase the threshold from $3 billion to $6 billion and maintain an 18-month minimum examination interval for those institutions. The bill was introduced by Representatives Moore (NC) and Torres (NY) in the 119th Congress. In short, the bill aims to ease regulatory burden on a broader set of smaller banks by extending eligibility for the less-frequent examination cycle, while preserving baseline supervisory oversight.
Key Points
- 1Short title: The bill is called the TRUST Act of 2025 (Tailored Regulatory Updates for Supervisory Testing Act).
- 2Core change: Modifies Section 10(d) of the Federal Deposit Insurance Act to alter the examination cycle thresholds for “well-managed” institutions.
- 3Threshold update: In two places (paragraphs 4(A) and 10), the asset threshold is raised from $3,000,000,000 to $6,000,000,000.
- 4Exam frequency requirement: Qualifying insured depository institutions with assets under $6 billion must be examined not less than once during each 18-month period (i.e., no longer than an 18-month gap between examinations for those banks).
- 5Legislative context: Introduced in the House by Rep. Moore of North Carolina and Rep. Torres of New York; referred to the Committee on Financial Services.