Incentivizing Safe and Sound Banking Act

What This Bill Does

Incentivizing Safe and Sound Banking Act

This bill allows the Federal Deposit Insurance Corporation to, during cease-and-desist proceedings for unsafe or unsound practices in an institution, prohibit the sale of stock in a bank or holding company by an officer or director of the bank or any bank-affiliated party who received stock as compensation. Further, the bill automatically prohibits the sale of such stocks by senior executive officers at large banks if the bank receives a certain risk management rating or if the bank is under an unresolved supervisory notice issued by a banking regulator.

Summary as of 03/09/2026, via Congress.gov / Congressional Research Service.

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