"U.S. Senator Cindy Hyde-Smith (R-Miss.) today introduced a bill to encourage the formation of new banks in underserved and rural areas by easing federal regulatory restrictions that have stifled bank and capital availability in Mississippi and other states.

The Promoting Access to Capital in Underbanked Communities Act (S.3937) would encourage the formation of new de novo banks by instituting a three-year phase-in period during which newly-chartered banks would be given time to meet less stringent capital requirements as they adapt to a business model that aligns with the needs and circumstances of the communities they serve.

'We need more community banks in our towns that understand the needs of everyday Mississippians,' Hyde-Smith said. 'We need to find a path to overcome stifling banking regulators and other factors that limit banking options in rural and underserved communities. This legislation marks a step toward expanding credit accessibility for Mississippians, including small business owners, entrepreneurs, farmers, and the list goes on.'"