Directs the Board of Governors of the Federal Reserve System to publish in the Federal Register proposed revisions to the Small Bank Holding Company Policy Statement on Assessment of Financial and Managerial Factors applying the policy to bank holding companies and savings and loan holding companies which have pro forma consolidated assets of less than $1 billion, and which:

• are not engaged in significant nonbanking activities either directly or through a nonbank subsidiary;
• do not conduct significant off-balance sheet activities (including securitization, asset management or administration) either directly or through a nonbank subsidiary; and
• do not have a material amount of outstanding debt or equity securities, other than trust preferred securities, registered with the Securities and Exchange Commission (SEC).

Authorizes the Board, however, to exclude any bank holding company or savings and loan holding company from the policy statement if that is warranted for supervisory purposes.