The nation's community banks are joining credit unions in appealing to Congress to provide regulatory relief for small financial institutions.
The letter follows on the heels of a letter CFPB Director Richard Cordray sent to senators who had requested that the agency do a better job of tailoring rules for small financial institutions. In that letter, Cordray said the agency already does an effective job in that area.
He cited several regulations in his response, as well as the advisory boards the CFPB uses to gain input from credit unions and others.
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Following that letter, NAFCU sent a response to senators, expressing its dismay with Cordray's comments and requesting congressional action.
This week, Camden Fine, president/CEO of the Independent Community Bankers of America joined the chorus.
"What's missing from Director Cordray's letter is any recognition of the cumulative and collective impact on community banks of the more than 5,000 pages of regulations, amendments, clarifications of rules, and interpretative rules issued by the CFPB, in addition to rules issued by other federal agencies before and after the Dodd-Frank Act," Fine said in his letter. "Implementing a single new rule can take weeks or months, depending on the complexity of the change and the bank processes impacted."
Fine said that ICBA believes Cordray should go further in providing broad exemptions for community banks.
And he attached a laundry list of regulatory relief bills the bankers would like Congress to enact this year.
House Financial Services Chairman Jeb Hensarling (R-Texas) has outlined a broad overhaul of the financial regulatory system, but action on that bill is unlikely this year.
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