Banking Committee Holds Economic Growth Hearing

On June 8, the Senate Banking Committee held a hearing entitled, “Fostering Economic Growth: The Role of Financial Institutions in Local Communities,” focused on regulatory reform for community banking institutions. On the same day that the House passed its sweeping rewrite of the Dodd-Frank financial reform law, the Senate took a step towards its own bill that is expected to be far more narrow in scope and gain the support of some moderate Democrats. Chairman Crapo pointed to relief from Basel II capital requirements and exemptions from Home Mortgage Disclosure Act reporting as two areas of possible bipartisan compromise. Meanwhile, moderate Democrats – including Sens. Heidi Heitkamp (D-ND), Jon Tester (D-MT), and Joe Donnelly (D-IN) – offered mild support for regulatory relief from the Consumer Financial Protection Bureau (CFPB) and seemed open to compromise.

The hearing was also timed with the release of the committee’s collection of public proposals to boost economic growth. The 130 submissions (including AFSA’s), which can be found here, came from a range of trade groups, think tanks, and businesses as the committee begins to craft its regulatory relief package.