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Congressman Scott Tipton

Representing the 3rd District of Colorado

Tipton Reintroduces Bill to Tailor Regulations, Support Entrepreneurs and Small Businesses

January 24, 2019
Press Release

WASHINGTON D.C. – This week, Congressman Scott Tipton (CO-03) reintroduced the Taking Account of Institutions with Low Operational Risk (TAILOR) Act (H.R. 741). This bill, which received bipartisan support in the 115th Congress, would require financial oversight agencies to tailor regulations to better fit a bank or credit union’s risk profile and business model, rather than forcing small community banks and credit unions to comply with regulations designed for large financial institutions. The bill passed the House with a bipartisan vote of 247-169 in the 115th Congress. 

“Small banks and credit unions have been inundated with burdensome regulations designed for large financial institutions ever since the Dodd-Frank Act was enacted in 2010,” said Tipton. “Because of this one-size-fits-all approach, smaller financial institutions must spend an exorbitant amount of money on compliance costs. The TAILOR Act alleviates regulatory burdens by requiring financial oversight agencies to take the size and risk profile of an institution into account. This bipartisan legislation will create more opportunities in communities across the country by allowing community banks and credit unions to dedicate more resources towards serving their customers rather on compliance costs.”

The TAILOR Act would do the following: 

  • Require the federal financial regulatory agencies to tailor any regulatory action to appropriately apply to banks and credit unions;
  • Require the federal financial regulatory agencies to consider risk profile and business model of the institutions to determine the necessity, appropriateness, and impact of applying such regulatory action to those institutions;
  • Require the federal financial regulatory agencies to individually report in person and testify in the House Committee on Financial Services and the Senate Banking Committee annually on the specific actions taken to tailor the agency’s regulatory actions as required by the bill;
  • Require that within three years of the enactment, federal financial regulatory agencies review all regulations adopted over the seven years prior to enactment and apply the requirements of this bill to such regulations.

Background

The TAILOR Act passed the House of Representatives in the 115th Congress.

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