The Community Bankers Association of Illinois thanks Senator Mark Kirk for joining with 69 other members of the U. S. Senate in signing a letter to Director Richard Cordray of the Consumer Financial Protection Bureau (CFPB) asking the Bureau to consider the impact of its rule-making on smaller financial institutions and consumers. The 70-member-strong bi-partisan letter was led by Senate Banking Committee members Joe Donnelly (D-Indiana) and Ben Sasse (R-Nebraska).
The Senate members acknowledged that community banks “serve as pillars of their communities, providing the capital access to credit that families and small businesses need to grow”. The letter continued, “Community banks should be treated differently from the largest financial institutions and non-bank lenders”, and the CFPB must ensure that community banks “are not unduly burdened by compliance, but rather have the ability to maintain their close relationships and continue to offer a wide range of consumer financial products and services.” The letter concluded by stating that “Dodd-Frank explicitly granted the CFPB the authority [later “robust authority”] to tailor regulations”, and the Bureau to act accordingly to prevent unintended consequences that impact community banks’ ability to serve their communities.
CBAI has consistently called on all banking regulators to tier [tailor] regulations of community banks, because a one-size-fits-all approach does not recognize the disproportionate burden of banking regulations on community banks. Read Senate Letter.
July 19, 2016