The Taking Account of Institutions with Low Operation Risk (TAILOR) Act has garnered approval from the House Committee on Financial Services and advanced to the House floor.
Rep. Scott Tipton (R-CO), who introduced the measure, noted it would provide community banks and credit unions relief from regulatory compliance by requiring federal regulatory agencies to tailor regulations to fit the business model and risk profile of institutions.
“Under Dodd-Frank rules, banks and credit unions are currently regulated under a one-size-fits-all approach regardless of size or risk profile,” Tipton said. “As a result, regulations designed and intended for big banks are also applied to small community and independent banks or credit unions. The compliance costs associated with these one-size-fits-all mandates are often unworkable for small community banks, which often don’t have the employees or resources to meet the compliance obligations. The TAILOR Act would allow federal regulators to better focus their oversight efforts and allow small banks and credit unions to focus their time and assets on investing in their communities, helping to generate economic growth and job opportunities.”
Officials said the American Bankers Association (ABA) joined the Independent Community Bankers of America in support of the TAILOR Act.
“It is clear that legislation is needed to address the mounting burdens of regulation that, in the aggregate, have stifled the ability of our nation’s financial institutions to serve the needs of consumers and small businesses, as well as local economies,” the ABA wrote. “The TAILOR Act stands as a balanced approach to addressing this problem.”