H.R. 5659 – Volcker Rule Relief Act of 2018

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Updated April 15, 2026 at 9:32 PM UTC

The Volcker Rule Relief Act of 2018 changes the Bank Holding Company Act to let small, community‑focused banks avoid the Volcker Rule’s restrictions on proprietary trading. It does this by adding a definition that exempts banks that are not controlled by large funds or holding companies and that have less than $10 billion in assets and limited trading activity. The rule would mainly affect community banks and their regulators.

Key Provisions

Amends Section 13(h)(1) of the Bank Holding Company Act to add a new exemption clause for community banks.
Specifies that a bank is exempt if it is not controlled by a covered fund or a bank holding company with more than $10 billion in total consolidated assets.
Requires that the bank’s trading assets and liabilities be no more than 5 percent of its total consolidated assets.

Legislative Activity

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HouseIntro Referral Latest Action

Referred to the House Committee on Financial Services.

Financial Services Committee

April 27, 2018

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HouseIntro Referral

Introduced in House

April 27, 2018

HouseIntro Referral

Referred to the House Committee on Financial Services.

Financial Services Committee

April 27, 2018

Bill Text

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Introduced in HouseIssued April 27, 2018

I

115th CONGRESS

2d Session

H. R. 5659

IN THE HOUSE OF REPRESENTATIVES

April 27, 2018

Mrs. Love (for herself and Mr. Huizenga) introduced the following bill; which was referred to the Committee on Financial Services

A BILL

To amend the Bank Holding Company Act of 1956 to provide relief from the Volcker Rule for community banks.

1.

Short title

This Act may be cited as the Volcker Rule Relief Act of 2018.

2.

Community bank relief

Section 13(h)(1) of the Bank Holding Company Act of 1956 (12 U.S.C. 1851(h)(1)) is amended—

(1)

in subparagraph (D), by redesignating clauses (i) and (ii) as subclauses (I) and (II), respectively, and adjusting the margins accordingly;

(2)

by redesignating subparagraphs (A) through (D) as clauses (i) through (iv), respectively, and adjusting the margins accordingly;

(3)

in the matter preceding clause (i), as so redesignated, in the second sentence, by striking institution that functions solely in a trust or fiduciary capacity, if— and inserting the following:

institution—

(A)

that functions solely in a trust or fiduciary capacity, if—

;

(4)

in clause (iv)(II), as so redesignated, by striking the period at the end and inserting ; or; and

(5)

by adding at the end the following:

(B)

that does not have, and is not controlled by a covered fund or a bank holding company that has—

(i)

more than $10,000,000,000 in total consolidated assets; and

(ii)

total trading assets and trading liabilities, as reported on the most recent applicable regulatory filing filed by the institution, that are more than 5 percent of total consolidated assets.

.