GOP bill seeks regulatory protections for community banks

The bill would require the Securities and Exchange Commission (SEC) to undergo a rigorous quantitative process to justify any new rules, reduce paperwork redundancies and help smaller bank holding companies acquire new capital, according to the Independent Community Bankers of America (ICBA).

“Relieving the nation’s community banks and the communities they serve from crippling regulatory burdens is essential to helping our economy recover,” ICBA President and CEO Camden R. Fine said.

The group announced its support for the bill, which contains some of the same provisions ICBA called for in a regulatory platform unveiled in February. The group has argued that community banks were not responsible for the economic crisis, and should not be penalized with new restrictions imposed to avoid a repeat.

ICBA is seeking a tiered regulatory approach “to allow these lower-risk institutions better promote economic recovery and job growth in Main Street communities,” the group argued.

The bill was referred to the House Financial Services Committee.