CFPB launched an inquiry last week into ways to gather and use information to identify the financing needs of small businesses, especially those owned by women and minorities.
ICBA called on the bureau and Congress to roll back the reporting mandates.
“Community banks continue to implement and comply with an unprecedented number of new and amended regulatory requirements put into effect over the past several years,” ICBA President and CEO Camden Fine said. “The CFPB’s data-collection and -reporting mandates will compound existing regulatory and paperwork burdens, to the detriment of economic and job growth. ICBA continues its call for Congress and the CFPB to address the mounting regulatory burdens harming local communities.”
Through its Plan for Prosperity, ICBA is calling on Congress to pass legislation that would repeal the statutory authority for new data-collection requirements on small-business loans. The mandatory reporting requirements in the Dodd-Frank Act will require the reporting of information regarding small-business loan applications. ICBA said this will disproportionately harm community banks.
ICBA also urged the CFPB to exempt community banks from any reporting rules it issues and to limit mandatory data points to those required by statute.