Regulatory Relief

Overview

Regulatory Relief

Regulatory burdens on the banking industry have grown dramatically in recent years, stretching the resources of banks across the country and hindering their ability to help local businesses grow and create jobs.

Press release

In Case You Missed It: Wall Street Journal Highlights Credit Union Expansion Without Limits

In case you missed it, on August 1 the Wall Street Journal published an article highlighting a credit union’s plan for growth with “no speed limit.” The CEO of the credit union, Pentagon Federal Credit Union (PenFed), has a very public plan called “Drive to 75,” with a goal of “pressing regulatory boundaries” by more than quadrupling the credit union’s assets from approximately $18 billion to $75 billion by 2025. According to the article, the credit union advertises “Great Rates for Everyone” despite the common-bond requirement.

Press release

Proposed US banking fix for marijuana may not open all doors

A proposal in Congress to ease the U.S. ban on marijuana could encourage more banks to do business with cannabis companies, but it appears to fall short of a cure-all for an industry that must operate mainly as a cash business in a credit card world.

Read the Associated Press story here.

Press release

California Department of Business Oversight Declares Extraordinary Situation in Counties Affected by Wildfires

Governor Jerry Brown has proclaimed a state of emergency in the following counties due to the effects of the California wildfires which has damaged structures and infrastructure, threatened homes, and caused the evacuation of residents.

Consequently, Commissioner of Business Oversight Jan Lynn Owen has determined that an extraordinary situation exists in the counties and has issued a proclamation authorizing state-chartered banks to close any or all of their offices in affected areas until the Commissioner determines the extraordinary condition has ended.

Press release

Fix Dodd-Frank
Bankers want a surgical fix for Dodd-Frank. Learn more about the customers hurt by its overly burdensome rules.

Fix Dodd-Frank

The CBA is pleased to share with you the following  video we have created that highlights the negative impact the qualified mortgage and ability to repay rules contained in the Dodd-Frank Act are having on banks’ lending activities. The video is intended to be a resource for all bankers to use to highlight the need to fix specific elements of Dodd-Frank, particularly QM/ATR, as you meet with local elected officials, community leaders, or in forums with your customers. Please also feel free to share and link to the video on your social media platforms.

Press release

Another Voice: Starting a Conversation on Bank Rules

Golden Pacific Bank’s President and CEO Virginia Varela says in Another Voice: Starting a Conversation on Bank Rules in the Sacramento Business Journal, “No matter what your political stance, there is something that we should be able to agree on, and that is there are too many silly, outdated and overly restrictive laws affecting community banks and small credit unions, harming small businesses and their access to capital.”

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Bank Examination Reform

Regulators ensure that the banks they supervise comply with all rules and regulations by having examiners visit banks on a regular basis to review their books. Although the details vary by the size and complexity of the institution, a bank “examination” consists of a detailed scrutiny of bank assets, liabilities, income and expenses. The exam process is designed to confirm that the bank is safe and sound, maintains accurate financial statements, and is properly following all applicable laws and regulations.

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Community Bank Regulatory Relief

Commercial banks play a major role in offering customized mortgages and consumer loans tailored to fit the unique characteristic of borrowers within their communities. Banks also are oftentimes the sole financial service provider in many of our nation’s smallest rural small towns. However, the compliance burdens and risks imposed by several requirements of the Dodd-Frank Act (DFA) and implementing regulations, particularly in the area of mortgage credit, have had negative impacts on banks, their customers and the housing market.

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Legislation

Federal legislation, the Community Lending Enhancement and Regulatory Relief (CLEAR) Act, has been introduced in the Senate and the House that would relieve regulatory burdens on community banks. Sens. Jerry Moran (R-KS), Jon Tester (D-MT), and Mark Kirk (R-IL) have introduced S. 1349 in the Senate, and Rep. Blaine Luetkemeyer (R-MO) has introduced H.R. 1750 in the House. The CLEAR Act is part of a sincere effort underway in Congress to address community banks’ concerns with growing regulatory burdens.