Relief For Main Street Borrowers & Lenders

Sen. Crapo’s Bipartisan Bill ‘Offers Common-Sense [Regulatory] Relief For Our Nation’s Nearly 5,700 Community Banks’

SEN. MIKE CRAPO (R-ID): “Community banks and credit unions across the country have long struggled to keep up with ever-increasing regulatory compliance and examiner demands coming out of Washington. In local economies, this places a strain on small businesses looking to open or to grow.” (Sen. Crapo, Congressional Record, S.1347, 3/6/2018)

  • SEN. CRAPO (R-ID): “…this bill seeks to right-size the regulatory system in our country, and to allow our community banks and credit unions to flourish, and by doing so, to provide the necessary and appropriate access to capital, and to credit that the people who live in our communities should have.” (Sen. Crapo, Press Conference, 3/6/2018)

CREDIT UNION NATIONAL ASSOCIATION President Jim Nussle: “On behalf of America's credit unions, I want to express our strong support for S. 2155, the Economic Growth, Regulatory Relief and Consumer Protection Act. The Credit Union National Association (CUNA) represents America’s credit unions and their 110 million members. We applaud the good faith effort to craft common-sense regulatory reform legislation. S.2155 is the result of months of deliberate bipartisan negotiations and contains several provisions supported by America’s credit unions.” (Jim Nussle, President & CEO, Credit Union National Association, Letter to Sens. McConnell and Schumer, 3/06/2018)

INDEPENDENT COMMUNITY BANKERS OF AMERICA: “With the Senate beginning to vote today on the bipartisan Economic Growth, Regulatory Relief and Consumer Protection Act (S. 2155), the Independent Community Bankers of America (ICBA) is reiterating its strong support for this pro-community bank legislation. The ICBA-advocated bill would stimulate local economic growth by providing much-needed relief to community banks while preserving vital consumer protections and effective regulatory supervision. ‘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 R. Fine said. ‘If you’re against S. 2155, you’re against community banks and the communities they support.’” (ICBA, Press Release, 3/06/2018)

THIRTEEN MIDSIZE BANKS: “This bipartisan legislation is a common-sense approach that maintains regulatory authority but makes reasonable changes that allow traditional lenders to better meet the credit needs of the people and businesses in our rural and urban markets…. Our banks do not threaten U.S. financial market stability, and we should not be subjected to the same regulatory regime as larger banks with more complex and interconnected business models…. [W]e appreciate the significant change proposed in S. 2155 that better matches regulations to a firm's risk profile.” (“Midsize Banks Urge Passage Of Senate Reg Relief Bill,” American Banker, 3/05/2018)

  • Letter Signed By: Ally Financial, American Express, Bank of the West, BBVA Compass, BMO Financial Corp., Citizens Bank, Comerica Bank, Fifth Third Bancorp, Huntington, KeyCorp, M&T Bank Corp., Regions Bank, SunTrust Banks, Inc.

‘Regulatory Burdens Are Plaguing Locally Based Community Banks,’ ‘Key Provisions In This Bill Ease Mortgage Lending And Free Up Capital For Small Businesses’

NEW HAMPSHIRE: Ledyard National Bank President & CEO Kathryn Underwood: “When the Economic Growth, Regulatory Relief and Consumer Protection Act cleared the Senate Banking Committee in December with strong bipartisan support, I was thrilled. It was a clear signal that our years-long effort to push back against the unyielding barrage of regulations had not been in vain. And that a much-needed reprieve for Ledyard National Bank and thousands of other community banks — whose footprint and small business lending surpass their larger counterparts — was finally within reach. For far too long we’ve been sidetracked by the ever-increasing federal regulations that have raised compliance costs [and] reduced local credit availability… With the legislation set to be brought to the Senate floor this week, Congress will have the opportunity to support community banks and the communities they serve so that we can return to relationship-based lending and help bolster our nation’s economic resurgence. By reforming overly complex regulations on community bank mortgage lending, for example, my staff can focus on the needs of our borrowers rather than the mounds of regulatory paperwork meant to rein in Wall Street’s excesses.” (Kathryn Underwood, Op-Ed, “Community Banks Like Mine Sorely Need Regulatory Relief,” American Banker, 3/05/2018)

MISSOURI: Heartland Credit Union Association President & CEO Brad Douglas: “Key provisions in this bill ease mortgage lending and free up capital for small businesses.  These two essential steps will help grow an economy that has suffered from both a financial crisis and the impact of regulations that treat all financial institutions the same without focusing on the bad actors who led us into the financial crisis…. By tailoring regulations rather than a one-size-fits-all solution, S. 2155 gives Missouri credit unions more ways to efficiently serve working families across the Show-Me State: Empowers credit unions to spend more time and resources addressing member service needs and providing consumer-friendly products and services by adjusting reporting thresholds; Gives consumers better and more efficient ways to purchase a home – like making it easier for creditors to extend a second offer of a mortgage loan as soon as it becomes available….” (Brad Douglas, Op-Ed, “CREDIT UNIONS: S. 2155 Will Go A Long Way To Improve The Financial Well-Being Of Missouri,” The Missouri Times, 3/01/2018)

INDIANA: Financial Center First Credit Union President & CEO Kevin Ryan: “In the aftermath of the financial crisis, federal officials imposed new restrictions on lending targeted at big Wall Street firms. But Main Street credit unions and community banks have been caught in the regulatory crossfire... If [S.2155] becomes law, it could lower the cost of borrowing for thousands of Indiana businesses.” (Kevin Ryan, Op-Ed, “Regulatory Relief Needed For Local Credit Unions And Banks,” The Indianapolis Star, 2/16/2018)

TEXAS: Independent Bankers Association Of Texas President & CEO Chris Williston: “Many communities throughout Texas have seen their local banks shutter or be absorbed by larger institutions over the last several years because laws and rules, intended to curb the abuses of the nation’s largest ‘too-big-to-fail’ banks, have instead trickled down to negatively impact the smallest. . . Without local banks, communities are starved of the capital they need for business growth and economic development. . . Only Congress holds the key to unchain community banks from the burden pushing them towards consolidation.” (Chris Williston, Op-Ed, “Is 2018 Year Of Community Bank Regulatory Relief?” The [McAllen, TX] Monitor, 1/29/2018)

ILLINOIS: Chairman And CEO Of Bank Of Springfield Tom Marantz: “The bill has broad support for good reason. Regulatory burdens are plaguing locally based community banks, which provide nearly half of the banking industry’s small-business loans despite making up less than 20 percent of its assets. Despite their low financial risk and high economic reward, Main Street community banks suffer from an onslaught of regulations.” (Tom Marantz, Op-Ed, “Community Bankers To Congress: Seize Bipartisan Opportunity For Local Growth,” The [Springfield, IL] State Journal-Register, 1/04/2018)

NORTH DAKOTA: Credit Union Association Of The Dakotas President & CEO Jeff Olson: “In recent years, federal regulations intended to rein in Wall Street have made it difficult for Main Street financial institutions to lend to small businesses and families across North Dakota. All credit unions and banks operate in a regulated environment, but the increase in regulations since the financial crisis has been not only dramatic, but costly…. Here in North Dakota, these regulations cost credit unions $23 million annually and lead to $3 million a year in lost revenue. Huge banks can easily absorb the costs of such regulations. But smaller lenders ‘have less capacity for regulatory compliance than large banks do,’ according to the Congressional Research Service. The additional costs can even force them to shut down.” (Jeff Olson, Op-Ed, “ND Credit Unions And Community Banks Need Relief,” Fargo Forum, 3/05/2018)

DELAWARE: Delaware Bankers Association President Sarah Long: “This bill will give more creditworthy borrowers in Delaware the chance to get the mortgage they need to buy a home.  It will allow more deserving small business owners to get the loan they need to expand and hire more workers. And community bankers will be able to spend more time serving their customers’ needs, instead of racking up hours a day complying with federal regulations intended for much larger institutions.” (Sarah Long, Op-Ed, “Bipartisan Bank Regulation Reform Will Help Delaware,” The [Delaware] News Journal, 2/02/2018)

MARYLAND: Bay Bank CEO Joseph Thomas: “The proposed regulatory relief bill prescribes more tailored regulation — longer exam cycles, less onerous reporting and simpler capital requirements. . . This legislation represents the best opportunity for Congress to support local communities by advancing meaningful reforms for the community banking sector.(Joseph J. Thomas, Op-Ed, “Congress Should Seize Bipartisan Opportunity To Grow Economy In Maryland,” Baltimore Business Journal, 1/23/2018)


Related Issues: Small Business, Middle Class, Jobs, Economy, Regulations