Community and regional banks across the United States are badly in need of regulatory relief. A bill proposed by Sen. Richard Shelby is poised to give it to them—but it is in need of one important change.
The Senate Banking Committee is scheduled to take up Sen. Shelby’s Financial Regulatory Improvement Act of 2015 this week. The bill would fix at least some of the problems that the Dodd-Frank Act has caused for community and regional banks and their customers, without undermining the law’s objectives of protecting consumers and ensuring the safety of the financial system.
Of the “fixes” contained in Sen. Shelby’s bill, most are narrow and unlikely to provoke controversy or alarm. Two provisions stand out among all the rest.