Us Congress 2023-2024 Regular Session

Us Congress House Bill HB6398

Introduced
11/14/23  

Caption

Financial Institution Regulatory Tailoring Enhancement Act

Impact

The legislation aims to reduce the compliance costs for financial institutions that fall below the new asset threshold, which proponents believe will encourage competition and innovation amongst smaller banks and credit unions. Increasing the asset threshold is expected to ease the stringent requirements imposed on smaller institutions, potentially empowering them to offer a wider range of financial products and services without being encumbered by extensive regulations that were originally designed for larger entities. This could enhance the service offerings available to consumers, especially in underserved markets.

Summary

House Bill 6398, known as the Financial Institution Regulatory Tailoring Enhancement Act, proposes to significantly increase the asset thresholds at which financial institutions are subjected to specific regulatory requirements. The current threshold of $10 billion will be raised to $50 billion across several key regulations, including those within the Consumer Financial Protection Act and the Electronic Fund Transfer Act. This bill is intended to alleviate some regulatory burdens from smaller financial entities, allowing them greater operational flexibility.

Contention

Conversely, the bill has faced criticism from consumer advocacy groups and some lawmakers who argue that increasing these thresholds may weaken consumer protections. They express concern that smaller financial institutions might not adequately manage risks or protect their customers without the constraints that come with existing regulations. Critics fear that this legislative change could lead to heightened risks in the financial system, particularly if smaller institutions engage in riskier lending practices without sufficient oversight, similar to the issues that contributed to past financial crises.

Companion Bills

US HB8337

Related Bank Resilience and Regulatory Improvement Act

Previously Filed As

US HB3230

Financial Institution Regulatory Tailoring Enhancement Act

US HB8337

Bank Resilience and Regulatory Improvement Act

US HB4823

American Financial Institution Regulatory Sovereignty and Transparency Act of 2023

US HB3556

Increasing Financial Regulatory Accountability and Transparency Act

US HB5999

Small Business Regulatory Relief Act

US HB3709

Advancing the Mentor-Protégé Program for Small Financial Institutions Act

US HB9148

Tailoring for Main Street’s Investors Act

US HB3004

USPS SERVES US Act USPS Services Enhancement and Regulatory Viability Expansion and Sustainability for the US Act

US HB6346

Advancing Nuclear Regulatory Oversight Act

US HB8996

Railroad Safety Enhancement Act of 2024 Safe Freight Act of 2023

Similar Bills

No similar bills found.