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Congressman Scott Tipton

Representing the 3rd District of Colorado

Tipton Reintroduces Bill to Tailor Regulations, Help Small Banks and Credit Unions Drive Economic Growth

February 22, 2017
Press Release

Congressman Scott Tipton (CO-03) has reintroduced the Taking Account of Institutions with Low Operation Risk (TAILOR) Act (H.R. 1116), a bill to provide smaller 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 instead of imposing one-size-fits-all mandates across the board, the TAILOR Act would allow community banks and credit unions to focus more of their resources on providing services to customers and growing their businesses. The bill would also free up resources for federal regulators to better focus oversight efforts on higher risk institutions.

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 press release, American Bankers Association Executive Vice President, James Ballentine, said, “This important bill would help address the huge flow of new regulations that have made it more difficult for banks to meet the needs of consumers and small businesses as well as local and regional economies. Regulators should be empowered – and directed – to make sure that rules, regulations and compliance burdens only apply to segments of the industry where warranted.”

The TAILOR Act received support from a bipartisan group of 112 members of Congress in the 114th Congress. The bill was approved by the House Financial Services Committee twice in 2016.