This story appeared in Bank Digest.
Representative Scott Tipton (R-Colo) has reintroduced the Taking Account of Institutions with Low Operation Risk (TAILOR) Act (H.R. 1116), which is intended to provide smaller community banks and credit unions relief from "onerous regulatory compliance burdens." The bill would require federal regulatory agencies to tailor regulations to fit the business model and risk profile of institutions instead of imposing one-size-fits-all mandates.
Under the current system, according to Tipton, "regulations designed and intended for big banks are also applied to small community and independent banks or credit unions," and the resulting compliance costs "are often unworkable for small community banks." He added, "The TAILOR Act would allow federal regulators to better focus their oversight efforts, and allow small banks and credit unions to focus their time and assets on investing in their communities, helping to generate economic growth and job opportunities."