New Bank Application Numbers Knowledge Act of 2025; New BANK Act of 2025
Summary
The "New Bank Application Numbers Knowledge Act of 2025" (New BANK Act of 2025) mandates annual reports on various financial institution charter and insurance applications. These reports will be published by the Comptroller of the Currency, the National Credit Union Administration Board, the Board of Governors of the Federal Reserve System, and the Federal Deposit Insurance Corporation. The reports aim to increase transparency regarding the application processes for national banks, federal savings associations, federal credit unions, depository institution holding companies, and federal deposit insurance.
Expected Effects
The Act will likely lead to greater public awareness of the regulatory processes governing financial institutions. It will also provide data for analysis of approval times and reasons for denial, withdrawal, or expiration of applications. This increased transparency could influence regulatory efficiency and potentially impact the number and types of financial institutions operating in the US.
Potential Benefits
- Increased transparency in the application processes for financial institutions.
- Provides data for analyzing approval times and reasons for application outcomes.
- May lead to improved efficiency in regulatory processes.
- Allows for better understanding of the factors influencing the establishment of new financial institutions.
- Facilitates data-driven policy discussions related to financial regulation.
Most Benefited Areas:
Potential Disadvantages
- The reporting requirements may impose additional administrative burdens on regulatory agencies.
- The data collected may not fully capture the nuances of each application case.
- The reports could be misinterpreted or used to promote specific political agendas.
- There might be costs associated with data collection, analysis, and report publication.
- The act does not directly address the underlying issues that cause application denials or withdrawals.
Constitutional Alignment
The Act aligns with the constitutional principle of transparency and accountability in government. While the Constitution does not explicitly address financial regulation in this manner, Article I, Section 8 grants Congress the power to regulate commerce, which implicitly includes the power to oversee and regulate financial institutions. The Act does not infringe upon any specific constitutional rights or limitations.
Impact Assessment: Things You Care About ⓘ
This action has been evaluated across 19 key areas that matter to you. Scores range from 1 (highly disadvantageous) to 5 (highly beneficial).