On July 31, 2026, the Board requested comment on a proposal to modernize rules for mutual banking organizations.
Mutual banks are owned by depositors rather than shareholders, and more than 90 percent have less than $3 billion in total assets.
The rules governing these banks were first established in 1993 and have not been updated since, proving over time to be overly burdensome and complex.
The assumed regulatory and supervisory authority over mutual banks from the Office of Thrift Supervision in 2011.
The proposal would increase flexibility for certain mutual banks to raise capital, clarify which instruments count as , and reduce procedural burdens.
Comments on the proposal are due 60 days after publication in the .
Vice Chair for Supervision Michelle W. Bowman said the proposal updates mutual bank regulations for the first time in 30 years, allowing these banks to grow and serve communities while preserving their depositor-owned structure.