HFSC to consider regulatory relief legislation in coming weeks

170px-Seal_of_the_United_States_House_of_Representatives.svgThe House Financial Services Committee may consider regulatory relief legislation in coming weeks amid calls by community banks and credit unions to lessen the regulatory burden.

Community banks and credit unions have maintained that the regulatory burden puts pressure on small institutions that lack the resources necessary to come into full compliance with many of the new rules governing the financial industry.

Ryan Donovan, the senior vice president of legislative affairs at the Credit Union National Association, said the committee may offer a bipartisan regulatory relief bill later this month if committee members can agree on the bill’s provisions.

Rep. Gary Miller (R-Calif.), the vice chairman of the committee, said during a March subcommittee hearing that he planned to introduce a credit union relief bill, and Rep. Blaine Luetkemeyer (R-Mo.) recently introduced the Community Lending Enhancement and Regulatory Relief Act, which is designed to ease the regulatory burden for community-based financial institutions.

Both the American Bankers Association and National Association of Federal Credit Unions have joined CUNA in support of Luetkemeyer’s legislation.

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