In a letter to the federal banking agencies, a bipartisan group of 133 House members asked what regulators are doing to tailor their rules to the diverse entities they supervise and to identify areas where they need additional legislative authority to tailor rules.
Led by Reps. Scott Tipton (R-Colo.) and David Scott (D-Ga.), the lawmakers emphasized that “the failure to effectively calibrate the regulatory response to match the level of risk posed by the institutions has had a real impact on the ability of institutions to serve their communities.” Tipton is the lead sponsor of the TAILOR Act, which would require regulators to take factors like asset size, business models and risk profiles into account when developing regulations.
The TAILOR Act, which recently cleared the House Financial Services Committee and is waiting for a floor vote, is a key part of ABA’s Agenda for America’s Hometown Banks. ABA and state association advocacy helped build support for the bipartisan letter.
Read the letter.