Latta votes for community banking bill

VW independent/submitted information

WASHINGTON, D.C. — This week, U.S. Representative Bob Latta (R-Bowling Green) joined colleagues in the House in unanimously passing legislation to ease the regulatory burden on community banks. H.R. 1553, the Small Bank Exam Cycle Reform Act, gives small banks the ability to better focus their employees and resources on serving their communities rather than on arduous regulatory paperwork.

“Community banks play a crucial role as a source of credit for many families in the Fifth District. Today, they face a growing number of unnecessary regulatory burdens that place strain on their limited resources,” Congressman Latta noted. “This strain can cause a shift of focus to compliance instead of the needs of their customers, a detriment to the economic growth of our communities.”

The legislation allows well-managed banks with $1 billion or under in total assets to be eligible for an 18-month bank examination cycle instead of the current 12-month cycle. The Small Bank Exam Cycle Reform Act amends the Federal Deposit Insurance Act to raise the qualifying asset threshold from $500 million to $1 billion.

“In many of our communities, these banks provide the only access to credit for small businesses. While larger financial institutions have the capital to ease the financial burdens these regulations cause, small institutions are less able to absorb the increasing expenses, and are more likely to pass the cost of regulations on to their customers in the form of higher prices and diminished credit availability,” Latta continued. “This legislation will ensure that well-run community banks can focus their time and resources on the community, rather than costly bureaucratic hurdles. I supported this bill because it creates an environment for our community banks that is less encumbered by Washington regulatory burdens, and more conducive to economic growth. ”