A group of lawmakers recently reintroduced legislation requiring federal regulatory agencies to consider bank and credit union risk profiles and business models when outlining regulations.
Senate Committee on Banking, Housing, and Urban Affairs members – U.S. Sens. Mike Rounds (R-SD), Cynthia Lummis (R-WY), Thom Tillis (R-NC), Bill Hagerty (R-TN) and Steve Daines (R-MT) – recently detailed the Taking Account of Institutions with Low Operation Risk (TAILOR) Act.
The bill would require regulatory agencies to provide an annual report to Congress determining steps taken to adjust regulations while reporting on bank supervision modernization; requires regulators to conduct a review of all the regulations issued by the agencies since the 2010 passage of the Dodd-Frank Act – stipulating if the review determines the regulations issued since 2010 do not conform to the TAILOR Act, the agency would be required to revise the regulations; and directs regulatory agencies to reduce reporting requirements for community banks.
“Financial institutions across South Dakota have been negatively impacted by burdensome, unnecessary regulations due to disproportionate compliance costs,” Rounds said. “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.”
Rounds said he is looking forward to working with colleagues to ensure smaller financial institutions can better meet the needs of families and local businesses.