The US House of Representatives legislation to ease the
regulatory burden on community banks has passed, and will now
to go the Senate. It should not, however, been seen as an
indication of looming bipartisanship on banks.
The Small Bank Exam Cycle Reform Act would amend the Federal
Deposit Insurance Act. If it becomes law, well-managed US banks
with under $1 billion in total assets will be eligible for an
18-month bank examination cycle, rather than the current
The unanimous vote comes in the context of wider appetite to
revisit how small US banks are regulated. In October, Federal
Reserve governor Lael Brainard also called for an easing of
regulatory burdens for community banks.
"We were very pleased with how this went," said Republican
Congressman Scott Tipton, speaking to IFLR. Tipton introduced
the legislation to the House: "There are always conversations,
but Republicans and Democrats share common ground on...