Rep. Tipton Introduces ABA, Alliance-Backed Tailored Regulation Bill

Rep. Scott Tipton today introduced the TAILOR Act (H.R. 2896), which would require financial regulators to consider bank risk profiles and business models when taking regulatory actions. The bill — a part of ABA’s Agenda for America’s Hometown Banks — has been strongly advocated by ABA and the alliance of state bankers associations.

“This type of smarter regulation would help America’s hometown banks by freeing up resources so they can better serve their customers and communities,” said ABA President and CEO Frank Keating. “We appreciate this bill’s measured approach that empowers regulators to focus on real risks rather than compliance exercises.”

In addition to requiring a tailored approach for future rulemakings, Tipton’s bill would require a review of regulations issued in the past five years and a report on how they might be better tailored. Regulators would be required to state in notices of proposed rulemaking how they applied the TAILOR Act.

“Many regulations have been indiscriminately applied to the whole industry whether or not they make economic or practical sense,” Keating added. “Regulators should be empowered — and directed — to make sure that rules, regulations and compliance burdens fit the various segments of the industry appropriately.”