ABA registered its strong support for legislation to relieve regulatory burden on community banks by raising the Federal Reserve’s threshold for small banks and thrifts. The House Financial Services Committee is scheduled to consider the legislation Thursday.
Introduced by Rep. Blaine Luetkemeyer (R-Mo.), the bill would raise the Fed’s definition of a small bank or thrift holding company from $500 million to $1 billion, exempting more banks from regulatory burdens that would not materially improve safety and soundness.
The bill “facilitates the ability of community banks and thrifts to issue debt and raise capital and thus increase their involvement in promoting the growth of their local economies,” ABA said. ABA noted that it continues to support additional legislation (H.R. 1750, the CLEAR Act) raising the threshold to $5 billion and urged the committee to return to the issue in the future.
Read ABA’s letter.