US small bank bipartisanship won’t extend to larger FIs

Author: Edward Price | Published: 22 Oct 2015

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 12.

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...


 

 

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