WASHINGTON (3/3/16)--The U.S. House Financial Services Committee voted 34-22 Wednesday in favor of a Credit Union National Association (CUNA) supported bill aimed at reducing regulatory burden for small financial institutions. The Taking Account of Institutions with Low Operation Risk (TAILOR) Act (H.R. 2896) would require federal regulators to take risk into account when promulgating regulations, and will now be sent to the full House for consideration.
“CUNA believes that credit unions are precisely the type of institutions for which this legislation is designed to help because they are well capitalized, with a low risk profile and a long history of meeting their members’ credit needs– in good times and bad,” wrote CUNA President/CEO Jim Nussle to the committee prior to the markup. “This legislation cuts to the heart of the problem that credit unions face in the aftermath of the financial crisis with respect to regulatory burden.”
Specifically, the legislation would direct banking agencies, as well as the National Credit Union Administration and Consumer Financial Protection Bureau, to:
Introduced by Reps. Scott Tipton (R-Colo.) and Andy Barr (R-Ky.), CUNA has supported the bill since it was introduced in June 2015.
“Policymakers from across the political spectrum acknowledge that credit unions and small banks were not responsible for the financial crisis, but the public policy response to the crisis without question fails to recognize this seemingly indisputable fact,” Nussle wrote. “Credit unions have been subjected to tens of thousands of pages of new regulations in the last seven years and this must stop.”
The committee also voted to approve the Flood Insurance Market Parity and Modernization Act (H.R. 2901), which would amend the Flood Disaster Protection Act of 1973 to make technical amendments to requirements for flood insurance under either the federal program or private flood insurance.