State Associations Call on Senators to Support TAILOR Act

All 52 state associations wrote to senators today urging them to co-sponsor the TAILOR Act, which would direct financial regulators to tailor regulatory actions based on the sizes, business models, risk profiles and other differentiating characteristics of the institutions they supervise.

Introduced by Sen. Mike Rounds (R-S.D.), S. 3153 has been jointly advocated by ABA and the state associations and is a key part of ABA’s Agenda for America’s Hometown Banks. The House version cleared the House Financial Services Committee in March and is waiting for a floor vote.

“Financial institutions, particularly community banks, have been besieged by an avalanche of regulations coming out of the financial crisis,” the associations wrote. “While many of those new rules address legitimate concerns, they are often applied in indiscriminate fashion, imposing substantial burdens on institutions whose risk profiles and business models clearly do not warrant such applications. In the end, the primary losers… are the people and communities served by our nation’s banks.”