The California Bankers Association Applauds Senate Passage of Bipartisan Regulatory Reform Legislation

Press release

SACRAMENTO, Calif. – On a strong bipartisan vote, the U.S. Senate approved 67-31, S. 2155, the Economic Growth, Regulatory Relief and Consumer Protection Act. The bill, which will now advance to the House, is designed to right-size banking regulations to allow banks to better serve their customers and their communities, while maintaining appropriate safety and soundness controls. 

“This bill is absolutely not a roll back of Dodd-Frank,” said Simone Lagomarsino, president and CEO of the Western Bankers Association. “This bill fixes a modest, but important, number of Dodd-Frank provisions that had unintended consequences for many of our community and regional banks.”

Specifically the bill:

  • Provides Qualified Mortgage designation for mortgages held in portfolio by banks with less than $10 billion in assets
  • Raises the threshold for designation as a systemically important financial institution from $50 billion in assets
  • Ends stress tests entirely for banks with under $100 billion in assets
  • Simplifies capital calculations for community banks
  • Provides relief from appraisal requirements for smaller mortgages
  • Institutes longer exam cycles for community banks

“The primary pillars of Dodd-Frank, including higher capital standards, increased oversight of our most complex financial institutions, robust resolution planning, an independent Consumer Financial Protection Bureau and greater coordination between regulators, all remain very much in place,” said Lagomarsino.

“This legislation is the byproduct of years of hearings, input from hundreds of stakeholders including community groups and think tanks, and careful negotiations between legislators on both sides of the aisle who rightly understood the serious issues facing financial institutions trying to grow the economy and voted to support commonsense reform to fix those issues,” concluded Lagomarsino.


About the Western Bankers Association

With more than 200 years of combined experience serving banks, the Western Bankers Association is one of the largest, state-banking, trade associations and regional educational organizations in the United States. WBA provides leading service and support to member banks throughout the Western States through two divisions.

CBA, the California state and federal advocacy division, is the advocate of the California banking industry for needed legislative, regulatory and legal changes.

WIB, the professional development division, provides education and training, and supports several hundred community banks headquartered in the 13 Western States by informing, educating, and connecting more than 20,000 bankers.