10/10/2019 | Press release | Distributed by Public on 10/10/2019 17:06
WASHINGTON - Today, consistent with the Economic Growth, Regulatory Relief and Consumer Protection Act (S. 2155), and additional efforts by the Federal Reserve, the Federal Reserve finalized the framework for applying prudential standards to institutions based on their risk profiles. Appropriately tailoring regulatory capital, stress testing, and liquidity regulations not only ensures proper behavior and safety for our markets, but makes sure that the burden on financial institutions is not so large that consumers, businesses, and our communities are deprived of financial services and suffer as a result of onerous regulation.
U.S. Senator Mike Crapo (R-Idaho), Chairman of the U.S. Senate Committee on Banking, Housing and Urban Affairs, released the following statement regarding today's vote:
'A primary purpose of S. 2155 was to spur economic growth by right-sizing regulations for financial institutions, including community banks and credit unions, midsized banks, and regional banks so they can redirect important financial resources to individuals, households and businesses,' said Chairman Crapo. 'I applaud the Federal Reserve for finalizing these rules and striking a more appropriate balance between preserving safety and soundness and tailoring regulations in a way that reflects a bank's risk profile.
Crapo's bill, signed into law in May 2018, provides meaningful relief to the community banks and credit unions that have been crushed under undue regulation for the past decade. It right-sizes the regulatory system for smaller financial institutions, allowing them to succeed and invest further in local economies. It also increases important consumer protections for veterans, senior citizens, victims of fraud, and those who fall on tough financial times.
To learn more about the Economic Growth, Regulatory Relief and Consumer Protection Act, click here.