U.S. Rep. Scott Tipton (R-CO) reintroduced the House version of the TAILOR Act, H.R. 1116, last week, which would require financial regulators to look at bank risk profiles and business models when considering regulatory actions.
U.S. Sen. Mike Rounds introduced similar legislation in the U.S. Senate last week.
The Taking Account of Institutions with Low Operation Risk, or TAILOR Act, would require regulatory agencies, including 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 base regulations on the risk profiles and business models of financial institutions. It also requires regulators to draft an annual report to Congress highlighting how they have tailored the regulations.
Further, the TAILOR Act says the agencies must review all regulations issued since the 2010 passage of the Dodd-Frank Act to determine if they conform to the TAILOR Act. If they don’t, they would have to be revised.
The American Bankers Association supports the legislation, which is something the association has long advocated for as part of its “Blueprint for Growth.”
“This important bill would help address the huge flow of new regulations that have made it more difficult for banks to meet the needs of consumers and small businesses as well as local and regional economies,” he said. “Regulators should be empowered — and directed — to make sure that rules, regulations and compliance burdens only apply to segments of the industry where warranted,” James Ballentine, ABA executive vice president, said.
Co-sponsors on the measure are U.S. Reps. Andy Barr (R-KY), Barry Loudermilk (R-GA), Mia Love (R-UT), Robert Pittenger (R-NC), Bill Posey (R-FL), Ed Royce (R-CA), David Trott (R-MI) and Roger Williams (R-TX). Tipton first introduced the TAILOR Act in the 114th Congress, where it cleared the House Financial Services Committee.