The Federal Reserve Board requested comment on proposed changes to modernize the regulatory framework for mutual banking organizations, which are owned by depositors rather than shareholders. The proposal would give certain mutual banks greater flexibility to raise capital while preserving their depositor-owned structure. The changes would clarify which instruments qualify as regulatory capital, reduce procedural burdens and make other updates to rules first established in 1993. More than 90% of mutual banking organizations have less than USD 3 billion in total assets. Comments are due 60 days after the proposal is published in the Federal Register.
Federal Reserve Board2026-07-31
Federal Reserve Board proposes modernized mutual banking rules and greater capital-raising flexibility
The Federal Reserve Board proposed modernizing rules for depositor-owned mutual banking organizations. The changes would clarify eligible regulatory capital instruments, reduce procedural burdens and give certain mutual banks greater capital-raising flexibility. Comments are due 60 days after Federal Register publication.