Sen. Dan Coats (R-Ind.) has introduced the Community Financial Protection Act, which would provide credit unions and community banks relief from financial regulations enacted after the financial crisis.

The bill would reform the way the CFPB requests information from financial institutions with less than $10 billion in assets by requiring the CFPB to gather publicly available information or obtain information from existing banking regulators. 

If the CFPB asks for information that is not publicly available, the bill would require the bureau to provide justification for its request. Under the bill, the regulator could deny any request for information from the CFPB.

“Hoosier community banks and credit unions play a key role in their local communities, and they are paying the price for mistakes made on Wall Street,” said Coats in a statement. “These Indiana businesses did not cause the financial crisis, but they are being treated as if they did by federal bureaucrats.

“My legislation will allow community financial institutions and credit unions to focus on what they want to do and do best – helping families and local employers.” 

The Indiana Bankers Association, the Indiana Credit Union League and CUNA support the bill.

“The Indiana Bankers Association applauds the efforts of Sen. Dan Coats to maintain and grow a strong Indiana banking community through the introduction of the Community Financial Protection Act,” said S. Joe DeHaven, president/CEO of the Indiana Bankers Association. “The Community Financial Protection Act is a solid step in the right direction to ensure that Hoosiers will have continued access to capital to invest in and build communities. The Indiana banking community welcomes and supports this measure.”