TAILOR Act of 2025

# TAILOR Act of 2025 Summary **What It Does:** The TAILOR Act would require federal banking regulators to customize their oversight of financial institutions based on their individual risk levels and business types, rather than applying one-size-fits-all rules. The bill focuses particularly on reducing regulatory burden on community banks by simplifying certain capital reporting requirements. Regulators would also have to report to Congress on what steps they've taken to tailor their supervision and modernize banking oversight practices. **Who It Affects:** The bill primarily targets community banks and smaller financial institutions that argue they face excessive regulatory costs compared to larger banks.

It would also affect federal banking agencies (like the Federal Reserve and the Office of the Comptroller of the Currency) that would need to adjust their practices and provide detailed reports to Congress. **Key Provisions:** The tailoring requirement would apply to both future regulations and rules adopted over the past 15 years. Community banks meeting certain capital standards would get simplified reporting requirements. Banking agencies must also report on modernizing supervision, including improvements to examiner training and any statutory changes needed for better oversight. **Current Status:** The bill is currently in committee as of the 119th Congress and has not yet been voted on.