Bill would force bank regulators to size rules to institutions' risk

What does this do?

The TAILOR Act of 2025 would require federal banking regulators to consider each institution's size, risk level, and business model before applying new regulations, so smaller or lower-risk institutions face less burden than larger ones. Agencies must publicly explain this tailoring when proposing and finalizing rules, report annually to Congress, and revise rules issued over the past 15 years within three years. It also directs creation of a simplified call report for small banks using the Community Bank Leverage Ratio and a report on modernizing bank supervision within 18 months.

Who does it affect?

The bill affects the OCC, Federal Reserve, FDIC, National Credit Union Administration, and Consumer Financial Protection Bureau, along with banks and credit unions—especially community banks and credit unions. Consumers could be indirectly affected through changes in banking costs or availability.

Why does it matter?

The change would alter how regulators apply and review rules, shifting compliance burdens differently across institutions based on size and risk. Consumers may see effects on the cost, availability, or oversight of banking services in their communities.

Where does it stand?