TAILOR Act of 2025

HR 3380, the TAILOR Act of 2025, requires federal banking regulators to tailor rules based on each institution's risk level and business model. It directly affects banks, particularly smaller community banks eligible for the Community Bank Leverage Ratio, by limiting unnecessary regulatory burdens like excessive reporting costs. Key provisions mandate regulators to adjust rule requirements to fit institutions' actual risks, reduce paperwork (including simplified annual reports for eligible banks), and document these adjustments in public notices. Regulators must also report annually to Congress on how they implemented the tailoring requirements and submit a report on modernizing bank supervision within 18 months.