Promoting New Bank Formation Act

This bill makes it easier for new banks and certain rural banks to start operating by reducing some financial requirements. New banks would get three years to meet capital requirements instead of having to meet them right away, and they could ask to change their business plans during this time with agencies having 30 days to respond. The bill also lowers the debt evaluation ratio for new rural community banks from 9% to 8% for three years before it goes back to the current level. Additionally, federal savings associations would be allowed to make agricultural loans, which they currently cannot do.

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