Last week, President Trump signed into law the bipartisan Economic Growth, Regulatory Relief, and Consumer Protection Act (S-2155). The legislation rolls back regulations imposed by the Dodd-Frank Wall Street Reform and Consumer Protection Act on community banks and credit unions.
“Our credit unions and community banks are an invaluable part of Iowa’s economy, supporting the entrepreneur looking to start their own business, a family looking to buy their first home, or the family farm in need of new equipment ahead of harvest,” Sen. Joni Ernst (R-IA) wrote in a letter to constituents. She noted that, according to the FDIC, community banks alone provide nearly half of all small business lending and agricultural loans in the United States, making them an integral part of many Iowan’s financial security and success.
“Unfortunately, the Dodd-Frank Act has hamstrung our community banks and credit unions with regulations,” Ernst said. “The law’s one-size-fits-all approach hinders their ability to provide financial assistance to their neighbors in communities around Iowa.”
The www.whitehouse.gov website says the act “provides commonsense regulatory relief for community banks, mid-sized banks, regional banks, and credit unions. The legislation will better tailor regulations to the risks posed by these institutions, improving the safety and soundness of the regulatory system.”
In addition, it said S-2155 removes certain regulations that impede the ability of these institutions to serve the financial needs of consumers.
“Small community banks have been unfairly and disproportionately harmed by Dodd-Frank, compared to big banks, which can use their substantial resources to navigate Dodd-Frank’s costly and complex regulations,” the website stated.
Ernst feels the legislation will provide community financial institutions with “much-needed relief from arduous, one-size-fits-all regulations, allowing them to focus on doing what they do best: supporting our communities.”
Read more on the bill here.