This bill changes how financial regulators create rules by making them consider the unique risks of different institutions. It aims to help smaller banks and credit unions operate more easily without excessive regulations.
Taking Account of Institutions with Low Operation Risk Act of 2025 or the TAILOR Act of 2025This bill addresses the supervision of financial institutions. Federal financial regulatory agencies must (1) tailor any regulatory actions so as to limit burdens on the institutions involved, with consideration of the risk profiles and business models of those institutions; and (2) report to Congress on specific actions taken to do so, as well as on other related issues. The bill's tailoring requirement applies to future regulatory actions and to regulations adopted within the last 15 years. The bill also reduces certain reporting requirements for community banks eligible for a simplified capital leverage ratio. Finally, federal banking agencies must report on the modernization of bank supervision, including examiner workforce and training and statutory changes necessary to achieve more effective supervision.
