Noting that asset thresholds in statutes like the Dodd-Frank Act are “artificial barriers” distorting strategic decision-making by banks, House Financial Services Committee Chairman French Hill (R-Ark.) floated an increase in the $10 billion-asset supervisory threshold to $25 billion.
Speaking at ABA’s Washington Summit, Hill — a former community bank CEO — said that artificially low thresholds drive banks to make consolidation decisions that they might not otherwise find necessary. “I’m a strong supporter of regulatory tailoring,” he said. “Moving these thresholds up dramatically is a goal that I have.”
With one key point being the $10 billion threshold for CFPB supervision, Hill added that “I want to have all the options on the table for the CFPB,” including using budget reconciliation to limit the scope and spending of CFPB and using a legislative approach to bring the CFPB onto congressional spending instead of its current funding model, which involves drawing directly from the Federal Reserve.
