Rounds Leads Bill to Ease Regulatory Burden on Local Banks and Credit Unions
WASHINGTON – U.S. Senator Mike Rounds (R-S.D.), a member of the Senate Committee on Banking, Housing, and Urban Affairs, today reintroduced the Taking Account of Institutions with Low Operation Risk (TAILOR) Act. This legislation would require federal regulatory agencies to take risk profiles and business models of institutions into account when crafting regulations.
“During the Biden administration, financial institutions across South Dakota were negatively impacted by burdensome, unnecessary regulations due to disproportionate compliance costs, with consumers ultimately paying the price,” said Rounds. “This bill would ease the regulatory burden on smaller financial institutions so they can focus resources on taking care of their customers. I am pleased to reintroduce this legislation in the 119th Congress to codify changes that will allow small financial institutions to serve their customers instead of bureaucrats.”
Original cosponsors include Senators Kevin Cramer (R-N.D.), Steve Daines (R-Mont.), Bill Hagerty (R-Tenn.), Cynthia Lummis (R-Wyo.) and Thom Tillis (R-N.C.).
Specifically, the TAILOR Act would:
- Require regulatory agencies, such as the Office of the Comptroller of the Currency, the Board of Governors of the Federal Reserve, the Federal Deposit Insurance Corporation, the National Credit Union Administration and the Consumer Financial Protection Bureau, to take into consideration the risk profiles and business models of individual financial institutions and shape those regulations accordingly.
- Require the regulatory agencies to provide an annual report to Congress outlining the steps they have taken to adjust their regulations as well as a report on the modernization of bank supervision.
- Require regulators to conduct a review of all the regulations issued by the agencies since the 2010 passage of the Dodd-Frank Act. If the review finds that the regulations issued since 2010 do not conform to the TAILOR Act, the agency would be required to revise the regulations.
- Direct regulatory agencies to reduce burdensome reporting requirements for community banks.
Click HERE for full bill text.
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