This week, Congressman Tim Moore (NC-14) introduced the Tailored Regulatory Updates for Supervisory Testing Act of 2025 (TRUST Act) in Washington, D.C. The bipartisan bill, also supported by Congressman Ritchie Torres (D-NY-15), aims to ease regulatory burdens on community banks by raising the consolidated asset threshold for well-managed institutions that qualify for longer examination cycles.
“Community banks and credit unions are essential to the success of our local economies — they’re where folks turn when they need help buying a home or starting a business,” said Congressman Moore. “These local financial institutions shouldn’t be hindered by one-size-fits-all regulations that treat them like major banking corporations. I’m proud to lead the TRUST Act to ensure they have the flexibility to focus on serving hardworking families and building new opportunities for economic growth.”
Congressman Torres emphasized the importance of this legislation for communities such as his own in the South Bronx. “The TRUST Act will deliver real relief to the community banks and CDFIs that serve as lifelines for neighborhoods like mine,” he stated. “By extending the 18-month exam cycle to well-managed institutions with up to $6 billion in assets, this bill will give mission-driven lenders the operational flexibility they need to grow, innovate, and reinvest in the communities they serve.”
Currently, most banks undergo examinations every 12 months; however, those with a good track record can qualify for an extended cycle if not under enforcement actions. The TRUST Act proposes increasing this asset limit from $3 billion to $6 billion.
The legislation would benefit four North Carolina banks currently meeting criteria for extended supervision. By reducing examination frequency, these banks could focus more on customer service rather than regulatory reviews.
Supporters of this bill include several industry groups such as the American Bankers Association (ABA), North Carolina Bankers Association (NCBA), and Independent Community Bankers of America (ICBA). NCBA President Peter Gwaltney expressed gratitude towards Rep. Moore’s leadership on banking issues: “Tailored regulation is a cornerstone of our advocacy for the banking industry… Rep. Moore is helping address outdated asset thresholds.”
Rob Nichols from ABA added praise: “We applaud… thank Rep. Moore and Rep. Torres… This important legislation helps ensure bank regulations do not impose unintended constraints… We look forward… continue our efforts… so they remain relevant over time.”
