TAILOR Act of 2023

The TAILOR Act of 2023 requires federal banking regulators (like the FDIC and Federal Reserve) to adjust rules based on each financial institution’s specific risk level and business model, particularly reducing regulatory burdens for smaller community banks. It mandates that regulators document how they tailor rules in rulemaking notices and submit annual reports to Congress on implementation. The bill also directs a review of existing regulations issued over the past seven years to apply these tailoring principles retroactively. A key provision simplifies reporting requirements for community banks eligible under the Community Bank Leverage Ratio framework. This aims to make oversight more practical for smaller institutions while maintaining regulatory oversight.