The U.S. Senate voted this week to advance the Economic Growth, Regulatory Relief and Consumer Protection Act, a bill that would ease regulations for banks.
In a procedural vote, the Senate voted 67-32 to end debate and advance the bill for a vote by the full Senate. Seventeen Democrats joined Senate Republicans to pass the procedural vote. The vote signals that the bill has a good chance of passing when it moves to the Senate for a vote in the coming days.
The Senate voted 67-32 to end debate on a motion to proceed to the bill, more than the 60 votes needed for that procedural vote.
The Independent Community Bankers of America (ICBA) reiterated its support for the bill, saying it will stimulate local economic growth by providing relief to community banks while preserving consumer protections.
“S. 2155 offers common-sense relief for our nation’s nearly 5,700 community banks to promote localized lending and economic growth,” ICBA President and CEO Camden Fine said. “If you’re against S. 2155, you’re against community banks and the communities they support.”
The bill would provide relief for larger community banks, including higher asset thresholds for systemically important financial institution designations, and easing of stress testing and formal risk committee requirements. Further, it would exempt most community banks from the Volcker Rule, help more community banks build capital, and improve regulatory treatment of reciprocal deposits and certain municipal securities.
In addition, it would provide “qualified mortgage” status for portfolio mortgage loans at most community banks, exempt certain community bank loans from escrow requirements, simplify community bank capital requirements, and create a short-form call report for use by certain community banks. Further, it would expand eligibility for the 18-month regulatory exam cycle to more community banks, and ease appraisal requirements to facilitate mortgage credit in rural communities.
“S. 2155 enjoys broad bipartisan support because it offers pro-growth relief for Main Street—not Wall Street,” ICBA Chairman Scott Heitkamp, president and CEO of ValueBank Texas in Corpus Christi, said. “Any senator who supports their state’s community banks and believes in our mission to serve local communities should vote in favor of this critical legislation.”