WASHINGTON--(EON: Enhanced Online News)--Today, the Regional Bank Coalition (RBC) and the Mid-Sized Bank Coalition of America (MBCA) released a letter in support of the Systemic Risk Designation Improvement Act (H.R. 6392) sponsored by Rep. Luetkemeyer.
In the letter, the groups wrote, “H.R. 6392 is a vital piece of legislation in addressing an improperly calibrated regulatory framework which currently employs an arbitrary asset threshold to evaluate bank risk – in turn hindering our banking institutions from serving our customers, communities and economy. Our banks are forced to focus more on regulation compliance than serving the customers, which is reducing capital that can be used for lending… We believe the regulatory framework should reflect the significant differences between community, midsize, regional and globally systemic banks.”
In conjunction with the letter’s release, Regional Bank Coalition spokesperson Matt Well issued the following statement:
“Regional banks are the dependable backbone of the American economy, lending billions of dollars to small and mid-sized businesses on Main Streets across the country. Although current regulations place one-size-fits-all regulations on banks with assets above $50 billion, regionals are very different from Wall Street banks from every perspective and are limited by the inappropriately tailored regulations. H.R. 6392, the Systemic Risk Designation Improvement Act, is an important piece of legislation in addressing current improperly calibrated regulations by determining a bank’s risk level through a number of factors, not just asset size.
“Using an arbitrary asset threshold — no matter if it is $50 billion, $250 billion or higher — does not take into account a bank’s holistic profile, which is necessary in determining what risks it poses to the financial system and if it should therefore be subject to heightened regulatory standards. We support Rep. Luetkemeyer’s bill and look forward to advancing the legislation towards becoming law, as it would lead to relief for many regional banks and spur capital lending to small businesses, and therefore, Main Streets around the country.”
The full letter can be found here.