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Congressman Scott Tipton

Representing the 3rd District of Colorado

Tipton’s Bipartisan Bill to Tailor Regulations, Support Community Banks Moves to House Floor

October 13, 2017
Press Release

Congressman Scott Tipton’s (CO-03) Taking Account of Institutions with Low Operation Risk (TAILOR) Act (H.R. 1116) has passed through the House Committee on Financial Services with a bipartisan vote and will now move to the House floor. The bill provides community banks and credit unions relief from onerous regulatory compliance burdens by requiring federal regulatory agencies to tailor regulations to fit the business model and risk profile of institutions. The TAILOR Act brings an end to the one-size-fits-all mandates that were implemented under the Dodd-Frank Act.  

Tipton said, “Under Dodd-Frank rules, banks and credit unions are currently regulated under a one-size-fits-all approach regardless of size or risk profile. As a result, regulations designed and intended for big banks are also applied to small community and independent banks or credit unions. The compliance costs associated with these one-size-fits-all mandates are often unworkable for small community banks, which often don’t have the employees or resources to meet the compliance obligations. Regulations play an important role in keeping our communities safe and secure, but they should be tailored to meet the risk profile and business model of specific institutions. The TAILOR Act would allow federal regulators to better focus their oversight efforts, and allow small banks and credit unions to focus their time and assets on investing in their communities, helping to generate economic growth and job opportunities.”

In a letter of support for the TAILOR Act, the Credit Union National Association (CUNA), wrote, “Overregulation is one of the reasons why small financial institutions are disappearing at an alarming rate. Legislation like the TAILOR Act is needed to ensure that institutions like credit unions can serve their members without excessive regulations.”

The Independent Community Bankers of America (ICBA) also wrote to Financial Services Chairman Jeb Hensarling and Ranking Member Maxine Waters urging the passage of the TAILOR Act.  

The American Bankers Association (ABA) also voiced its support for the TAILOR Act, stating, “It is clear that legislation is needed to address the mounting burdens of regulation that, in the aggregate, have stifled the ability of our nation’s financial institutions to serve the needs of consumers and small businesses, as well as local economies … H.R. 1116 stands as a balanced approach to addressing this problem.”

The TAILOR Act has now passed the Financial Services Committee three times. It also passed the full House of Representatives as part of the Financial Creating Hope and Opportunity for Investors Consumers and Entrepreneurs (CHOICE) on June 8, 2017.