As part of a national strategy to promote financial inclusion, the Treasury Department and other policymakers should require banking agencies to consider the effects of any regulatory proposal on low-to-moderate-income and underserved consumers’ access to financial products and services, including bank accounts and credit products, the American Bankers Association, Bank Policy Institute and Consumer Bankers Association said yesterday in a joint letter to the department.
The Treasury Department in December issued a request for information as part of the development of a national strategy on financial inclusion, which was required by Congress in legislation passed last year. In their letter, the associations said they support the goals of the strategy but worry that regulations recently finalized or proposed by banking agencies could reverse the progress that has already been made. “As part of a national strategy to promote financial inclusion, the Treasury Department and other policymakers should require banking agencies to consider the effects of any regulatory proposal on low- to-moderate-income and underserved consumers’ access to financial products and services. Regulatory restrictions could preclude banks from expanding underserved communities’ access to products that promote wealth building, small business growth and economic resilience,” they said.
The associations said that banking regulators—including the CFPB—should consider the negative effects of regulatory actions on low-to-moderate-income consumers. They also suggested additional policy steps to promote financial inclusion, including requiring credit unions and other nonbank financial institutions to meet the obligations of the Community Reinvestment Act, or be held to similar requirements.
