Closing the Enhanced Prudential Standards Loophole Act

This bill extends enhanced prudential standards to individual banks that do not have a bank holding company, ensuring they are treated the same as larger bank holding companies with similar asset sizes. The key provision amends the Financial Stability Act of 2010 to apply these stricter regulatory requirements directly to standalone banks rather than only to bank holding companies. This change aims to close a regulatory gap where some large banks previously operated under less stringent oversight. The legislation affects the Federal Reserve and other banking regulators who would now enforce these standards on qualifying banks.