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Dodd-Frank Reform Bill Provides Regulatory Relief to Community Banks and Credit Unions, Includes Consumer Protections

The Senate recently voted to pass the first major overhaul of our financial system since the Dodd-Frank Act was signed into law in 2010. S. 2155, the Economic Growth, Regulatory Relief and Consumer Protection Act, is a bipartisan effort that begins to roll back the unnecessary and burdensome regulations placed on small banks and credit unions following the financial crisis. This has hindered the ability of those institutions to serve their customers, particularly in rural areas. Our legislation will help make sure families and businesses have access to credit when they need it, which is critical as we continue to grow a healthy American economy.

As a member of the Senate Banking Committee, I was happy to be an original cosponsor of our bipartisan effort. In fact, S. 2155 includes seven provisions I took the lead on, such as the Home Mortgage Disclosure Adjustment Act, which will provide small banks and credit unions with data reporting relief. It also includes a provision to help small, local federal savings associations, known as FSAs or thrifts, expand their ability to offer loans to more families and businesses without going through a costly charter conversion process.


Our legislation also takes steps to help veterans, as it includes my Protecting Veterans Credit Act, so that vets who are waiting on delayed payments from the VA Choice Program cannot be penalized by creditors. We were also able to secure a provision to protect seniors by removing legal liability for individuals who report the financial abuse of vulnerable senior citizens. These are just a few of the items included in the bill to protect consumers and relieve small financial institutions from time-consuming and costly layers of bureaucracy that they currently face under Dodd-Frank.


Some regulatory recalibration was necessary in response to the financial crisis, but Dodd-Frank’s crippling new rules and regulations have limited the ability of our financial system to best serve the American people. Without question, no one wants to repeat the events that contributed to the economic recession that began in 2008. We are only now beginning to lift out of that nearly decade-long economic slump thanks to the tax relief law and President Trump’s focus on regulatory reform. There is still work to be done to get back to a healthy American economy and that’s why our legislation is so important. Every step we can take to provide relief to our lenders is a win for families and businesses who rely on those lenders to provide the tools that they need to grow our economy and create jobs.


The Economic Growth, Regulatory Relief and Consumer Protection Act will strengthen our financial system and allow small banks and credit unions to focus on serving their communities - their friends, neighbors, store owners and job providers. I’m pleased the Senate was able to come together in a truly bipartisan fashion to provide much-needed relief. We remain optimistic we will be able to work with the House of Representatives to get this legislation to the president’s desk in a timely manner.