WASHINGTON (6/30/15)--A bill introduced last week by Rep. Scott Tipton (R-Colo.) aims to provide regulatory relief for credit unions and community banks. The Taking Account of Institutions with Low Operation Risk (TAILOR) Act (H.R. 2986) would require federal regulatory agencies to shape regulations to fit the risk profile and business model of institutions.
“Banks and credit unions are currently regulated under a one-size-fits-all approach regardless of size or risk profile. As a result, regulations designed and intended for big banks are also applied to small community and independent banks or credit unions,” said Tipton. “Regulations should be tailored to meet the risk profile and business model of specific institutions to prevent unnecessary costs and burdens to those institutions, while ensuring that government regulators are able to better focus their resources to provide oversight and ensure a safe and reliable financial marketplace.”
Specifically, the bill would require:
Regulatory relief for credit unions is one of CUNA’s top advocacy priorities. The organization has testified numerous times before Congress on regulatory burdens facing small financial institutions, and has written in support of legislation that would do the same.