For Immediate Release
November 13, 2017
ABA Media Contact: Jeff Sigmund
(202) 663-5439
Follow us on Twitter: @ABABankers

ABA Statement on Bipartisan Regulatory Reform Legislation in Senate

By Rob Nichols, ABA president and CEO

“ABA welcomes today’s announcement of a bipartisan Senate agreement on legislation that would reform our nation’s financial regulatory rules. The deal reached today by Chairman Crapo and Senators Tester, Heitkamp, Donnelly and Warner shows that lawmakers of good faith from both parties can agree on commonsense changes to allow banks to better serve their customers and communities. We thank them for their leadership, and look forward to working with senators to move this legislation forward, and to improve it where possible. 

“The legislation contains several provisions ABA has long supported, including mortgage rule changes that will allow more creditworthy Americans the opportunity to buy a home, longer examination cycles for community banks, charter flexibility for federal savings associations and stress test relief.  While we continue to strongly oppose arbitrary asset thresholds, the proposal to lift the threshold for designated systemically important institutions will at least spare more banks from regulatory requirements that made little sense for institutions of their size. We think further adjustments are warranted, and ABA will continue to make the case that tailoring regulation based on a bank’s risk profile and business model — as a growing number of regulators support — is the best and most effective way to ensure banks are able to serve their communities while protecting safety and soundness.

“While this legislation could go much further, ABA still views this bipartisan bill as an important first step in right-sizing the rules for America’s banks. Combined with reforms under consideration by regulators, as well as changes already approved by the House, this is an opportunity for policymakers to put in place a more effective and efficient set of rules that will allow banks to do what they do best – serve their customers and help America’s economy grow. 

“We hope lawmakers of both parties will support this bipartisan regulatory reform measure.” 

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The American Bankers Association is the voice of the nation’s $17 trillion banking industry, which is composed of small, midsize, regional and large banks that together employ more than 2 million people, safeguard $13 trillion in deposits and extend more than $9 trillion in loans.​