In-Depth: Sponsoring Rep. Scott Tipton (R-CO) cited concerns about the impact of regulatory exams
occurring every 12 months on the ability of small banks to serve their
customers as a reason for introducing his bill: “The most widespread
concern that I’ve heard from small banks I’ve met with throughout
Colorado, is that increased regulatory compliance burdens have taken
vital resources away from running their business operations and
providing services to consumers.”
In a letter of support
for this bill, the Independent Community Bankers of America noted that
offsite supervision of banks could continue, and that making on-site
exams less frequent for the healthiest banks: “would actually increase
safety and soundness by allowing examiners to focus their limited
resources on the true sources of risk.”
The House FInancial Services Committee passed this legislation unanimously on a vote of 59-0.
Of Note: According to the
Federal Reserve, the 550 largest banking corporations in the U.S. have an assets of $1 billion or larger, while there are about 1,230 banks ranging in size between $999 million and $300 million.
The
FDIC reports that of the 5,472 banking firms in the U.S., there are 4,898 that have less than $1 billion in assets, which amounts to 89.5 percent.
Media:
Summary by Eric Revell
(Photo Credit: Flickr user Tony Webster)
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