Fischer Introduces Bipartisan Legislation to Ease Regulatory Burdens for Community Banks and Credit Unions

Press Release

U.S. Senator Deb Fischer (R-Neb.) today announced she is introducing legislation with Senators Angus King (I-Maine), Mark Warner (D-Va.), and Jon Tester (D-Mont.) to provide immediate regulatory relief to America's small financial institutions, like community banks and credit unions, that will help them to better serve their communities.

As many smaller financial institutions struggle under the weight of shortsighted regulations, the RELIEVE Act would help lift the burden by modernizing outdated regulations, making technical corrections to the Dodd-Frank Act, and providing parity for credit unions with regard to insurance coverage of lawyer trust accounts and other escrow accounts.

"Smaller financial institutions are important sources of credit and capital many hardworking Americans rely on to provide for their families or get a small business off the ground. To help middle class families continuing to struggle, we should promote policies that improve access to these critical financial resources and fuel economic growth," Senator Fischer said. "The RELIEVE Act will go a long way in removing misguided regulatory burdens from the Dodd-Frank Act and ensure that financial institutions can better support our small businesses, foster opportunities for the middle class, and strengthen our communities."

More specifically, the bill would:

Require the Federal Reserve to revise the Small Bank Holding Company Policy Statement so that the policy applies to bank holding companies and savings and loans holding companies with pro forma assets of less than $1 billion, an increase from the current threshold of $500 million.

Improve the definition of "rural" so that more counties will be considered rural for the purposes of the rules of the Bureau of Consumer Financial Protection; increase the annual mortgage origination limit for rural creditors from 500 to 1,000 per year.
Provide credit unions parity with FDIC-insured institutions when it comes to deposit insurance coverage on Interest on Lawyers Trust Accounts (IOLTAs) and other escrow accounts.

A summary of the legislation can be viewed by clicking HERE: http://www.king.senate.gov/download/?id=D09FFB77-3C83-489E-98AB-A0B4440A95CC&inline=file.

The bill has also been endorsed by the U.S. Chamber of Commerce, the American Bankers Association, and the Credit Union National Association.

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