Bipartisan Bill Provides Relief to Small Banks
WASHINGTON—On Thursday, the House voted 280-139 to pass a bill that would provide much needed relief to community financial institutions and greater financing options for the communities they serve.
As Financial Services Committee Chairman Jeb Hensarling (R-TX) explained, “Because of increased regulation and compliance costs, many community banks have found it difficult to access and raise capital. The very same capital that is needed to ensure that our smallest institutions continue to lend to their communities, hire new loan officers and staff, and survive what remains a very difficult environment for community banks. Passing this bill will immediately benefit community banks across America. Not big banks. Not Wall Street. But Community banks that focus their attention on the needs of local families, small businesses, and farmers.”
H.R. 4771, the Small Bank Holding Company Relief Act – sponsored by Rep. Mia Love (R-UT) – makes it easier for community banks to raise additional capital by issuing debt, providing sensible regulatory relief to small financial institutions while also preserving important safety and soundness measures.
“Community banks are often the only place many people can get a loan, whether they're purchasing a home or starting a business. As a matter of fact, in some areas, a community bank is the only financial institution that residents have. When these small banks are overwhelmed with regulations and mandates – many of which are meant for larger institutions – it is hard working families and low-income Americans in those communities who suffer,” said Love. “H.R. 4771 is a very simple bill to help small banks, savings and loan companies get access to the capital they need to make credit available to their neighbors.”