Rounds Reintroduces Bill to Ease Regulatory Burden on Local Banks and Credit Unions
WASHINGTON – U.S. Senators Mike Rounds (R-S.D.), Cynthia Lummis (R-Wyo.), Thom Tillis (R-N.C.), Bill Hagerty (R-Tenn.) and Steve Daines (R-Mont.), members of the Senate Committee on Banking, Housing, and Urban Affairs, reintroduced the Taking Account of Institutions with Low Operation Risk (TAILOR) Act. This legislation would 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 due to disproportionate compliance costs,” said Rounds. “These costs are ultimately passed down to consumers. This bill would ease the regulatory burden on smaller financial institutions so they can focus resources on taking care of their customers, rather than spending time and money on bureaucratic paperwork. 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.”
This legislation is endorsed by the Independent Community Bankers of America.
The TAILOR Act:
- Requires 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 profiles and business models of individual financial institutions and shape those regulations accordingly.
- Requires the regulatory agencies to provide an annual report to Congress outlining the steps they have taken to adjust their regulations as well as a report on the modernization of bank supervision.
- 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.
- Directs regulatory agencies to reduce burdensome reporting requirements for community banks.
Click HERE for full bill text.