WASHINGTON – William Moore, the Executive Director of the Regional Bank Coalition, issued the following statement in response to the Senate Banking Committee’s passage today of legislation to base systemic regulation of banks on risk, and not just an arbitrary size threshold:
“Today’s Senate Banking Committee markup represents a significant step forward for Main Street communities across America. The legislation passed by the Senate Banking Committee today will improve the economy by reforming the regulation of community, mid-size, and regional banks. Members of the committee from both parties made clear during the markup that common ground exists to focus prudential regulation on banks that pose the greatest risk to the financial system while improving the ability of banks outside of Wall Street to lift the economies of the communities they serve and still ensuring their safety and soundness.
“Democrats and Republicans on the committee signaled a desire to get a bill to President Barack Obama’s desk – a goal shared by community, mid-size, and regional banks. Senate Banking Committee members have a history of working out bipartisan compromises as legislation progresses between committee and final passage, and the Senate and White House have already worked through standoffs on several issues this year to produce solid, bipartisan bills. That precedent bodes well for reforms that would help regional banks devote resources that are now dedicated to complying with regulations that do nothing to improve safety and soundness to instead improving the economy of local communities across the country through loans to families and small businesses.
“We are confident that both parties will ultimately agree that banks that pose no systemic risk to the economy should not be regulated like the Wall Street banks that do. The Regional Bank Coalition looks forward to working with both parties to help advance a bill for President Obama’s signature.”
About the Regional Bank Coalition: The Regional Bank Coalition is a group of regional banks that support regulation based on risk and business model to ensure safety and soundness. For more information, visit www.regionalbanks.org or follow on Twitter @rgnlbanks.