Highway Funding Bill Includes Community Bank Regulatory Relief

Congress passed and President Obama signed into law a highway and transportation funding bill that included community bank regulatory relief. Three bills detailed below were included in an amendment to the funding bill. All had previously passed the House as stand-alone measures with very strong bi-partisan support.

H.R. 601, the Eliminate Privacy Notice Confusion Act

Summary: This legislation will reduce confusion among consumers by clarifying that they will receive privacy notices after opening a new account (only) when their financial institution’s privacy policies change rather than on an annual basis. The bill passed the House by voice vote on April 13th.

H.R. 1553, the Small Bank Exam Cycle Reform Act of 2015

Summary: This legislation will provide regulatory relief for community banks by allowing well-managed institutions to qualify for longer exam cycles. The bill passed the House 411-0 on Oct. 6th.

H.R. 1334, the Holding Company Registration Threshold Equalization Act of 2015

Summary: This legislation increases the shareholder registration and deregistration thresholds contained in the JOBS Act (passed a few years ago) to savings and loan holding companies. The bill passed the House by voice vote on July 14th.

The highway and transportation funding legislation also exempts community banks $10 billion and under from cuts to Federal Reserve Bank stock dividends which will save approximately $200 million per year (ICBA estimate). In addition to the exemption, the law also contains CBAI/ICBA advocated measures which will: restore funds cut from the federal crop insurance program; drop language that would have extended higher Fannie Mae and Freddie Mac guarantee fees; remove language that a bank must operate “predominantly” in rural or underserved areas to qualify for a QM mortgage underwriting exemption; and establish a process for appealing the CFPB's rural area designation.

CBAI thanks members of the Illinois Congressional delegation for their overwhelmingly bi-partisan support for this important legislation.

December 7, 2015


CBAI Staff in Washington Pressing Support for Community Bank Relief

Last week CBAI’s Vice President Federal Governmental Relations, David Schroeder, visited every office of the Illinois congressional delegation, the Office of Comptroller of the Currency, the Federal Deposit Insurance Corporation, as well as senior legislative staff at the Independent Community Bankers of America (ICBA), to discuss a variety of important issues and urge the immediate passage of legislation deemed vital to Illinois’ community banks as noted below.

Support Community Bank Positions on Tiered Regulation and Regulatory Relief

Support Removing Federal Reserve Dividend Reduction from Highway and Transportation Funding Legislation

Support Enhanced Security for Consumer Data (data breaches)

Support Taxation of Credit Unions and Oppose Their Expanded Powers

Support for CBAI’s positions on these major legislative and regulatory initiatives will allow community banks to encourage additional lending, fuel job creation, help create economic growth, and more fully serve their communities. Read More.

November 16–20, 2015


CBAI Asks Regulators to Consider Combined Regulatory Impact on Community Banks

In a letter to the regulators, CBAI raised concerns about the intended and unintended consequences of regulations promulgated by multiple agencies to address the same regulatory concerns. CBAI is concerned that the increased capital required under Basel III, higher proposed FDIC assessments, expected increases in ALLL from the CECL, increased disallowance of “excess” ALLL, and the increased QM and TRID compliance burden will make commercial and real estate lending overly burdensome, prohibitively costly, and harmful to community banks, the financial system and our economy. CBAI requested assurances from Chair Yellen, Chairman Gruenberg and Comptroller Curry that the regulators are frequently and rigorously communicating and coordinating their activities, and considering the combined impact of their individual rulemaking. Read Letter to Regulators.

November 13, 2015


CBAI Urges Regulators to Reduce Call Report Burden

In a comment letter dated November 12, 2015, CBAI responded to the Federal Reserve Board, Federal Deposit Insurance Corporation and the Office of Comptroller of the Currency regarding a FFIEC-approved proposal, and called for meaningful regulatory relief for community banks by streamlining the Call Report and providing a short-form version of the Call Report for the quarters ending March and September.

Regulatory relief for community banks must be the Agencies number one priority. Regulatory burden has increased as a result of the financial crisis and the resulting avalanche of regulation is causing community bankers to focus more on regulatory compliance than serving their customers and communities. The Agencies' current efforts at meaningful regulatory relief are insufficient and much more needs to be accomplished. Every opportunity needs to be embraced by the Agencies to reduce the massive and growing regulatory burden on community banks including Call Report regulatory relief. Read Comment Letter.