1. Short title This Act may be cited as the Taking Account of Institutions with Low Operation Risk Act of 2023 or the TAILOR Act of 2023 . 2. Tailoring regulation to business model and risk (a) Definitions In this section— (1) the term Federal financial institutions regulatory agency means the Office of the Comptroller of the Currency, the Board of Governors of the Federal Reserve System, the Federal Deposit Insurance Corporation, the National Credit Union Administration, and the Bureau of Consumer Financial Protection; and (2) the term regulatory action — (A) means any proposed, interim, or final rule or regulation; and (B) does not include any action taken by a Federal financial institutions regulatory agency that is solely applicable to an individual institution, including an enforcement action or order. (b) Consideration and tailoring For any regulatory action occurring after the date of enactment of this Act, each Federal financial institutions regulatory agency shall— (1) take into consideration the risk profile and business models of each type of institution or class of institutions subject to the regulatory action; and (2) tailor the regulatory action applicable to an institution, or type of institution, in a manner that limits the regulatory impact, including cost, human resource allocation, and other burdens, on the institution or type of institution as is appropriate for the risk profile and business model involved. (c) Factors To consider In carrying out the requirements of subsection (b), each Federal financial institutions regulatory agency shall consider— (1) the aggregate impact of all applicable regulatory action on the ability of institutions to flexibly serve their customers and local markets on and after the date of enactment of this Act; (2) the potential impact that efforts to implement the regulatory action and third-party service provider actions may work to undercut efforts to tailor the regulatory action described in subsection (b)(2)