Senate Passes Crapo’s Economic Growth, Regulatory Relief and Consumer Protection Act
WASHINGTON – Today, the United States Senate, under the leadership of Banking Committee Chairman Mike Crapo (R-Idaho), passed the most significant piece of regulatory reform legislation for community financial institutions in nearly a decade. Crapo’s Economic Growth, Regulatory Relief and Consumer Protection Act (S. 2155) passed the Senate by a strong, bipartisan vote of 67 to 31.
To view a section-by-section summary, click here.
Before the final vote on passage, Chairman Crapo remarked that America was about to witness a “rare, bipartisan moment that had been years in the making,” adding, “this bill is a bipartisan compromise, the changes are commonsense, and it will allow financial institutions to better serve their customers and communities, while maintaining safety and soundness and important consumer protections. At a time of intense political polarization, we have proven that we can work together to get things done. This is good for small financial institutions, good for small business, and good for families across America.”
Click here for video of Crapo's remarks.
For years, senators on both sides of the aisle have been working to reach consensus on how to provide relief for smaller financial institutions from regulations that were meant for the biggest, most complex institutions, while also ensuring a safe financial system. The Economic Growth, Regulatory Relief and Consumer Protection Act right-sizes the regulatory system for smaller financial institutions, allowing community banks and credit unions to flourish. Rather than spend time on compliance, these institutions can redirect resources toward what they do best – approving mortgages, providing credit, and lending to small businesses.
The bill has received widespread support from commentators, regulators, businesses and institutions representing millions of hard working Americans and consumers, including over 10,000 community bankers, more than 100 million credit union consumer members, and thousands of small business owners and entrepreneurs, among others.
To learn more about the bill, click here.
Mr. President, we are about to witness a rare, bipartisan moment in the Senate that has been years in the making.
We have had the opportunity to highlight this bill over the last two weeks, and I have been very encouraged by my colleagues’ support for this critical piece of legislation.
I again thank each of the senators who support this bill, including many members of the Banking Committee, for their interest and involvement in the many discussions, hearings, and personal conversations we have had to get to this point.
Since the bill passed out of the Banking Committee, supporters have worked in good faith to include provisions that different members have offered, including those who do not support the bill.
The substitute amendment we introduced last week reflects the additional provisions that the bill’s supporters were able to agree on, collectively.
The final bill we are about to vote on today is the product of careful negotiations and good, old-fashioned statesmanship.
The majority of us in this body recognize that our community financial institutions have been struggling to keep up with the regulatory demands coming out of Washington, and that it was time to revisit current law and make changes where necessary.
And while there are certain provisions that I would like to have included in this bill, I believe the package on which we were able to reach consensus is an important step in the right direction, and will deliver much-needed relief and economic growth to Main Street America.
When this bill is signed into law, it will right-size regulation for financial institutions, including community banks and credit unions, making it easier for consumers to get mortgages and obtain credit.
And those are the real victims of this regulatory overreach. Individuals who find it difficult to get access to credit, help get a loan for college, to get a mortgage for a house, or small businesses seeking to start up or expand who can’t get necessary access to capital, not because they’re not credit-worthy, but because the system we’ve created makes it so that our smaller financial institutions who do so much of the relationship banking throughout America don’t have the ability to do so anymore.
It will also increases important consumer protections for veterans, senior citizens, victims of fraud, and those who fall on tough financial times.
This bill has received widespread support for good reason.
The cycle of lending and job creation has been stifled by onerous regulation.
Absent excessive regulatory burden, local banks and credit unions will be able to focus more on lending, in turn propelling economic growth and creating jobs.
Not to be overlooked, this is also an important moment for bipartisanship and working across the aisle to legislate.
Many people are worried about the gridlock in Congress. This bill shows that we can work together and do big things that make a difference in the lives of people across this country.
Those who support this bill have recognized that with the right regulation – tailored regulation – we can promote local economic growth through our nation’s smaller financial institutions.
I’ll end with this. This bill was a bipartisan compromise, the changes are commonsense, and it will allow financial institutions to better serve their customers and communities, while maintaining safety and soundness and important consumer protections.
At a time of intense political polarization, we have proven that we can work together to get things done.
This is good for small financial institutions, good for small business, and good for families across America. I encourage my colleagues to support its passage.
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