A bipartisan group of 70 senators wrote to the CFPB, calling on the agency to exempt community banks and credit unions from certain regulations. Led by Senate Banking Committee members Joe Donnelly (D-Ind.) and Ben Sasse (R-Neb.), the letter cited a provision of the Dodd-Frank Act allowing the bureau to adapt regulations by exempting “any class” of entity from its rulemakings.
Meanwhile, four Democratic senators – Mark Warner (Va.), Gary Peters (Mich.), Bob Casey (Pa.) and Tim Kaine (Va.) – wrote to the federal banking agencies urging them to revisit Basel III liquidity and capital requirements for regional banks. While they noted that Basel III does differentiate supervision for large banks, "this distinction is applied unevenly across different institutions despite similar risk profiles, simply by virtue of an asset threshold."
The senators urged the agencies to review the reporting period for the Liquidity Coverage Ratio for regional banks and to revisit the advanced approaches risk-based capital regime, which has not been fully reviewed since the implementation of post-crisis reforms in the U.S.
Read the letter on community banks.
Read the letter on regional banks.