ABA-Advocated Exam Fairness Bill Introduced in House

Joined by 29 bipartisan cosponsors, Reps. Lynn Westmoreland (R-Ga.) and Carolyn Maloney (D-N.Y.) yesterday introduced H.R. 1941, which would help address ongoing concerns about the lack of consistency and quality in the bank examination process.

The bill — a core part of ABA’s Agenda for America’s Hometown Banks — would establish clear exam standards and create an Office of Independent Examination Review to ensure consistency across exams. It would also mandate that financial institutions receive timely reports fully documenting the information regulators use to make their determinations and create an expedited process for banks to appeal exam decisions without fear of reprisal.

“Our members are concerned that examiners are making decisions during the examination process that have effectively and unnecessarily reduced the amount of capital available for lending — particularly to small businesses,” ABA said in a letter being sent to the House this morning. H.R. 1941 joins a similar bipartisan bill in the Senate that currently has 15 cosponsors. ​