ABA, state bankers associations urge House leaders to support Main Street Capital Access Act
Proposed legislation to adjust banking regulations and encourage de novo bank formation would promote economic growth in communities across the country, the American Bankers Association and 52 state bankers associations said today in a joint letter to House leaders.
Law on Access to the Capital Main Street (HR 6955) brings together several proposals previously presented in Congress. They include a three-year phase-in period for new financial institutions to meet federal capital requirements, a 90-day deadline for agencies to make decisions on bank merger and acquisition requests and a new requirement for agencies to consider an institution’s risk profile and business model when issuing new regulations and supervisory decisions.
In their letterassociations said local banks operate under a regulatory framework that too often fails to take into account their size, risk profile and business model. The draft law will ease the regulatory burden on community banks while at the same time promoting the establishment of new banks, they said.
“The Access to Capital on Main Street Act would be an important step towards expanding access to banking for individuals and SMEs, while allowing community banks to focus on serving their customers,” the associations said.
