Rounds Reintroduces Bill to Ease Regulatory Burden on Local Banks & Credit Unions
WASHINGTON—U.S. Senator Mike Rounds (R-S.D.), a member of the Senate Committee on Banking, Housing and Urban Affairs, today reintroduced the Taking Account of Institutions with Low Operation Risk (TAILOR) Act, a bill to require federal regulatory agencies to take risk profiles and business models of institutions into account when crafting regulations.
“Financial institutions across South Dakota have been negatively impacted by burdensome, unnecessary regulations because of disproportionate compliance costs since the passage of the Dodd-Frank Act in 2010,” said Rounds. “Excessive costs and regulatory hurdles continue to hurt consumers the most. The TAILOR Act would ease the regulatory burden on smaller financial institutions so they can focus their resources on taking care of their customers, rather than spending time and money on compliance, the costs of which are ultimately passed onto the consumer in South Dakota. I look forward to working with my colleagues on this important legislation so our smaller financial institutions are better able to meet the needs of families and local businesses.”
“South Dakota is home to some of the smallest and the largest banks in the world, with wide variations in their business models,” said Curt Everson, President of the South Dakota Bankers Association. “Bankers from those institutions agree that today’s one-size-fits-all regulatory scheme doesn’t make sense. We applaud Senator Rounds for introducing the TAILOR Act to start the conversation about matching bank regulation to risk.”
The TAILOR Act would require regulatory agencies, such as the Office of the Comptroller of the Currency, the Board of Governors of the Federal Reserve, the Federal Deposit Insurance Corporation, the National Credit Union Administration and the Consumer Financial Protection Bureau, to take into consideration the risk profile and business models of individual financial institutions and tailor those regulations accordingly. Additionally, the bill requires the regulatory agencies to provide an annual report to Congress outlining the steps they have taken to tailor their regulations.
The TAILOR Act also requires regulators to conduct a review of all the regulations issued by the agencies since the 2010 passage of the Dodd-Frank Act. If the review finds that the regulations issued since 2010 do not conform to the TAILOR Act, the agency would be required to revise the regulations.
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