Closing the Enhanced Prudential Standards Loophole Act

This bill requires large standalone banks (those without a parent bank holding company) to follow the same enhanced supervision and prudential standards as bank holding companies with similar asset sizes. It amends the Financial Stability Act of 2010 to close a regulatory gap where these standalone banks previously faced fewer oversight requirements. The key mechanism mandates that banks with total consolidated assets comparable to covered bank holding companies must undergo identical stress testing, capital planning, and risk management processes. This directly affects large, independent banks that operate without a parent financial holding company but have significant assets.