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Economic growth

House Financial Services Committee Aims to Strengthen Financial System

Strategic Insights

— 1 min read

The House Financial Services Committee, under the leadership of Rep. French Hill (R-Arkansas), is focused on advancing a series of bills aimed at fostering economic growth, innovation, and stability in the financial system. These bills will strengthen the banking system, make capital markets more efficient, and protect the system from foreign interference and corruption. The committee's goal is to create a financial system that meets the evolving needs of U.S. consumers and businesses.

Key Takeaways:

  • The House Financial Services Committee is working on bills to allow banks to access diverse sources of funding, such as reciprocal and custodial deposits, to enable small and well-managed institutions to grow organically.
  • The committee will consider legislation to improve how the Department of Justice (DOJ) works with the Federal banking agencies to analyze bank mergers.
  • The committee aims to modify the community bank leverage ratio to encourage smaller banks to opt-into the framework established in S.2155.
  • The committee will markup bills to strengthen public trust in our markets by protecting vulnerable investors and creating a safer environment for them.
  • The committee will also remove unnecessary authorities granted to the Securities and Exchange Commission (SEC) pursuant to Dodd-Frank, creating regulatory clarity for market participants.
  • The committee's ultimate goal is to create a financial system that fosters economic growth, innovation, and stability while meeting the evolving needs of U.S. consumers and businesses.
  • Chairman French Hill emphasized the importance of a strong banking system as the foundation for economic growth, financial stability, and consumer confidence.

Statistics:

  • 15 years: The amount of time the committee has heard about the need to revisit the bank regulatory framework, especially for community banks.
  • 2018: The year the bipartisan banking reform law passed by President Trump was signed into law.
  • 15: The percentage of unnecessary authorities granted to the SEC beneath Dodd-Frank that will be removed.
  • Uncertainty: The response from market participants regarding the need for regulatory clarity.

Sources:

  • House Financial Services Committee press release, September 16, 2025
  • Rep. French Hill's statement at the committee markup of various bills
  • S.2155: The bipartisan banking reform law passed in 2018
  • Dodd-Frank: The 2010 financial reform law that established the SEC's powers
  • Financial Services Committee: The committee reviewing bills to strengthen the financial system

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