H.R. 4437 · Passed House · Finance and Financial Sector

SMART Act of 2025

Sponsor: William R. Timmons IV (R-SC)

What it does

• Require well-capitalized and well-managed depository institutions and credit unions with assets of $6 billion or less to receive limited-scope examinations in the year following a full-scope examination, rather than full
• Allow depository institutions and credit unions to request that separate compliance examinations (such as safety and soundness and information technology examinations) be combined and performed simultaneously.
• Exclude recently acquired depository institutions and those subject to formal enforcement proceedings or orders from the limited-scope examination requirement.

Official summary

Supervisory Modifications for Appropriate Risk-based Testing Act of 2025 or the SMART Act of 2025 This bill limits the scope of certain examinations and combines oversight procedures for certain small depository institutions and credit unions. Specifically, depository institutions and credit unions that are considered well-capitalized and well-managed (per their most recent examination) with assets of $6 billion or less must receive a limited-scope examination, as determined by the appropriate federal regulator, in the year following a full-scope examination. In addition, upon request by the depository institution or credit union, the regulator must combine separate compliance examinations (e.g., safety and soundness examinations and information technology examinations) and perform them at the same time. The bill provides exceptions for recently acquired depository institutions and for depository institutions and credit unions subject to certain formal enforcement proceedings or orders.

Latest action

May 13, 2026: Received in the Senate and Read twice and referred to the Committee on Banking, Housing, and Urban Affairs.

Committee: Senate Banking, Housing, and Urban Affairs