Press Releases

House Acts to Tailor Regulation


Washington, March 14, 2018 - On Wednesday, the House voted 247-169 to pass a bill that would ease some of the one-size-fits-all regulations that are crippling community financial institutions.

H.R. 1116, the Taking Account of Institutions with Low Operation Risk (TAILOR) Act of 2017 – sponsored by Representative Scott Tipton (R-CO) – moves financial regulatory agencies away from the current one-size-fits-all approach to instead consider additional factors such as an institution's risk profile, unintended potential impact of implementation of such regulations, and underlying policy objectives of the statutory scheme which led to the regulation.

Not only will the TAILOR Act ensure appropriately tailored compliance obligations for banks and credit unions of various risk profiles, but the legislation will also ensure banks and credit unions can continue to provide products and services to Main Street consumers. The TAILOR Act is the embodiment of smart regulation, which will promote small financial institution competition and foster consumer choice and availability of credit.

As Financial Services Committee Chairman Jeb Hensarling (R-TX) explained, "As our small banks and credit unions go, so goes the American dream. At a bare minimum, let’s tailor the rules and regulations to the size and complexity of the institution so our credit unions, so our banks can thrive and thus our constituents can thrive and meet their economic goals and responsibilities.”

A similar provision was also included in the Financial CHOICE Act (H.R. 10), which passed the House in June 2017.


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