A proposed bill to tailor bank regulation and boost de novo bank formation would promote economic growth in communities across the country, the American Bankers Association and 52 state bankers associations said today in a joint letter to House leaders.
The Main Street Capital Access Act (H.R. 6955) brings together several proposals that had been previously floated in Congress. They include a three-year phase-in period for de novo financial institutions to meet federal capital requirements, a 90-day deadline for agencies to make decisions on bank merger and acquisition applications, and a new requirement for agencies to consider an institution’s risk profile and business model when issuing new regulations and supervisory decisions.
In their letter, the associations said community banks operate under a regulatory framework that too often fails to account for their size, risk profile and business model. The bill would ease regulatory burdens on community banks while promoting new bank formation, they said.
“The Main Street Capital Access Act would be an important step toward expanding banking access for both individuals and small- and medium-sized businesses while allowing community banks to focus on serving their customers,” the associations said.
