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Reps. Meeks, Love, Gottheimer Introduce Bipartisan Bill for Community-Focused Institutions

January 12, 2018
Press Release
"Small banks are essential for our communities...This is an important way in which we can support community-focused institutions."

 

Reps. Meeks, Love, Gottheimer Introduce Bipartisan Bill for Community-Focused Institutions

Washington, D.C.—Reps. Gregory W. Meeks (NY-05), Mia Love (UT-04), and Josh Gottheimer (NJ-05) today introduced H.R. 4471, the Small Bank Holding company Relief Act of 2018. The bill would change current law to assist small banks and savings and loan companies secure access to capital so they can continue serving their communities. These banks and companies are currently restricted by capital guidelines intended for larger institutions.

Specifically, the bill would raise the consolidated asset threshold under the Federal Reserve’s Small Bank Holding Company Policy Statement from $1 billion to $3 billion, so that smaller banks aren’t required to maintain burdensome capital-to-risk-weighted asset ratio requirements. This will free up small banks to further lend to and service their local communities, by permitting them to distribute debt or equity to their banking subsidiaries.

"Small banks are essential for our communities. When large institutions fled certain areas after the financial crisis, small banks continued to serve them. We must encourage their lending so they can continue to provide critical banking services to communities with limited options. Former Chair Yellen made inroads on this issue by raising the threshold for the Fed’s Small BHC Policy Statement,” noted Rep. Meeks. “After two years, I’m glad to join my colleagues Reps. Mia Love and Josh Gottheimer to propose a slight increase of that threshold consistent with bipartisan negotiations taking place on community banking relief. This is an important way in which we can support community-focused institutions."

According to Rep. Love, “Smaller banks are the lifeblood of many local communities in Utah. They support the credit needs of low and middle income families as well as the small businesses, farmers, and entrepreneurs that create jobs. Community banks are a major, and sometimes the only, lending source for a lot of hard working and ambitious people.”

“Community banks are an essential element of our communities-- helping our families buy homes and small businesses get off the ground in North Jersey. But these economic engines have been under historic economic pressure from new, unnecessarily burdensome regulations, Regulatory relief and cutting bureaucratic red tape will increase access to capital for community banks and their customers-- our Jersey families and businesses,” said Rep. Gottheimer. “The bipartisan Small Holding Company Relief Act will help residents of the Fifth District by spurring business job growth and access to credit.”  

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