Promoting New Bank Formation Act

(1) the date on which the depository institution became an insured depository institution; or

(2) in the case of a depository institution holding company, the date on which the depository institution subsidiary of the depository institution holding company became an insured depository institution.

During the 3-year period beginning on the date on which a depository institution became an insured depository institution, the insured depository institution or its depository institution holding company may request to deviate from a business plan that has been approved by the appropriate Federal banking agency by submitting a request to such agency pursuant to this section.

The appropriate Federal banking agency shall, not later than the end of the 30-day period beginning on the receipt of a request under subsection (a)—

(1) approve, conditionally approve, or deny such request; and

(2) notify the applicant of such decision and, if the agency denies the request—

(A) provide the applicant with the reason for such denial; and

(B) suggest changes to the request that, if adopted, would allow the agency to approve such request.

If an appropriate Federal banking agency fails to approve or deny a request within the 30-day period required under subsection (b), such request shall be deemed to be approved.

During the 3-year period beginning on the date on which a rural depository institution became an insured depository institution, the Community Bank Leverage Ratio for the rural community bank shall be 8 percent.

The Federal banking agencies shall issue rules to phase-in the Community Bank Leverage Ratio described under subsection (a) with respect to a rural depository institution by setting lower Community Bank Leverage Ratio percentages during the first 2 years of the 3-year period described under subsection (a).

In this section:

The term Community Bank Leverage Ratio has the meaning given that term under section 201(a) of the Economic Growth, Regulatory Relief, and Consumer Protection Act (12 U.S.C. 5371 note).

The term rural depository institution means a depository institution—

(A) with total consolidated assets of less than $10,000,000,000; and

(B) located in a rural area, as defined under section 1026.35(b)(iv)(A) of title 12, Code of Federal Regulations.

(1) in paragraph (1), by adding at the end the following:

Secured or unsecured loans for agricultural purposes.

(1) ; and

(2) in paragraph (2)(A), by striking business, or agricultural and inserting or business.

The Federal banking agencies shall, jointly, carry out a study on—

(1) the principal causes for the low number of de novo insured depository institutions in the 10-year period ending on the date of enactment of this Act; and

(2) ways to promote more de novo insured depository institutions in areas currently underserved by insured depository institutions.

Not later than the end of the 1-year period beginning on the date of enactment of this Act, the Federal banking agencies shall, jointly, issue a report to Congress containing all findings and determinations made in carrying out the study required under subsection (a).