WASHINGTON, D.C. ― The U.S. House of Representatives has passed H.R. 1116, the Taking Account of Institutions with Low Operation Risk (TAILOR) Act of 2017, to reform mandates under Dodd-Frank and relieve small banks and other community financial institutions from burdensome compliance regulations.
This bill requires federal regulatory agencies to tailor regulations to fit the institution’s profile and risk it presents to the stability of the financial system.
U.S. Rep. Steve Pearce issued the following statement:
“Due to regulations under the Dodd-Frank Act, small banks and credit unions in rural communities around New Mexico, and across the nation, are regulated under a one-size-fits-all-approach without consideration of their size or risk profile. As a result, many small banks are unable to keep up with mounting compliance costs and are either forced to reduce services or shut down completely.
“From helping families purchase their first home to providing credit for small businesses, small banks and credit unions are important for generating job growth and economic prosperity in our communities. I’m pleased to see this bill move forward today, and will continue working to put an end to crippling financial regulations that punish Main Street.”
The TAILOR Act requires federal regulatory agencies, including the Consumer Financial Protection Bureau, to examine the risk profile and business models of banks as well as other community financial institutions under their jurisdiction and tailor any regulatory action appropriately.