This legislation seeks to modernize regulations for merchant banking activities by amending the Bank Holding Company Act of 1956 . It specifically modifies section 4(k)(7)(A) to establish a new minimum holding period for merchant banking investments. Under the proposed changes, the period generally permitted for holding these investments will be no less than 15 years . This extended duration will apply to all merchant banking investments, including those made after the Act's enactment and those already held on that date, ensuring a consistent minimum holding time from their initial investment.