Federal Reserve Board requests comment on a proposal to modernize rules



Federal Reserve Board - Federal Reserve Board requests comment on a proposal to modernize rules for mutual banking organizations Skip to main content

Official websites use .gov
A .gov website belongs to an official government organization in the United States.

Secure .gov websites use HTTPS
A lock () or https:// means you've safely connected to the .gov website. Share sensitive information only on official, secure websites.

July 31, 2026

For release at 10:00 a.m. EDT

The Federal Reserve Board on Friday requested comment on a proposal to modernize rules for mutual banking organizations. These institutions are owned by depositors rather than shareholders, and more than 90 percent have less than $3 billion in total assets.

The Board assumed regulatory and supervisory authority over mutual banks from the Office of Thrift Supervision in 2011. The rules governing these banks were first established in 1993. They have not been updated and have proven over time to be overly burdensome and complex.

"Today's proposal is another important step in our work to modernize the bank regulatory framework by updating mutual bank regulations for the first time in 30 years. The continued success of this model contributes to the institutional diversity of the U.S. banking system, which is one of the greatest strengths of our financial system," said Vice Chair for Supervision Michelle W. Bowman. "This proposal will allow mutual banks to continue to grow and more effectively serve communities across the country, while preserving their unique depositor-owned structure."

The proposal would modernize the framework and increase flexibility for certain mutual banks to raise capital. More specifically, it would clarify which instruments count as regulatory capital and reduce procedural burdens, among other comprehensive updates.

For media inquiries, please email [email protected] or call 202-452-2955.

Federal Register notice: Regulatory Modernization and Relief for Mutual Holding Companies

Board memo (PDF)

Statement by Governor Barr

Last Update: July 31, 2026