WASHINGTON, Aug. 22 -- The Independent Community Bankers of America issued the following letter to Congress:
The Honorable Pat Toomey
United States Senate
Washington, D.C. 20510
The Honorable Joe Donnelly
Dear Senators Toomey and Donnelly:
On behalf of the more than 6,500 community banks represented by ICBA, I write to express our strong support for S. 2732, which would raise the threshold for banks exempt from direct examination and reporting requirements by the Consumer Financial Protection Bureau (CFPB) from $10 billion to $50 billion in assets.
As a result of industry consolidation, most U.S. consumers today are served by megabanks with assets well above $50 billion. S. 2732 would enhance consumer protection by allowing the CFPB to concentrate on these megabanks, focusing on the greatest threat to consumers and making more effective use of their limited resources. Banks of less than $50 billion in assets would continue to be examined for compliance with CFPB rules by their prudential regulators: the Federal Reserve, the Office of the Comptroller of the Currency, or the Financial Deposit Insurance Corporation. Bank supervision is more balanced and effective when a single regulator examines for both safety and soundness and consumer protection. Fragmented supervision, where different agencies examine for different sets of rules with different goals, creates potential conflicts that increase prudential and consumer risk.
What's more, S. 2732 embodies the principle of tiered regulation of financial institutions according to their asset size and the risk they pose to consumers and to safety and soundness - a principle to which ICBA is deeply committed. Thank you for introducing this legislation. We look forward to working with you to advance it.
Camden R. Fine
President & CEO
CC: Members of the Senate Banking Committee
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