SCOTT TOMLINSON: Regulatory relief legislation good for communities

The Senate is expected to vote soon on pro-community bank legislation, the bipartisan Economic Growth, Regulatory Relief and Consumer Protection Act (S. 2155). This bipartisan legislation, co-sponsored by Sen. David Perdue, R-GA, offers substantial relief from mortgage, capital, data-reporting and many other regulations. I would like to thank Sen. Perdue and other bipartisan legislators for co-sponsoring the bill.

The bill’s provisions promote community bank mortgage lending; capital access and rule simplification; smarter, risk-targeted examination and supervision policies, and more. S. 2155 includes important provisions to strengthen larger community banks that are critical to the economy.

These measures have been identified by community bankers nationwide for their growth-creating potential. Relief targeted at community banks will deliver a substantial economic benefit for Main Street small businesses and local communities across our nation.

Community banks are the economic lifeblood of local communities. While holding less than 20 percent of the nation’s banking assets, community banks fund more than 60 percent of small business loans and more than 80 percent of U.S. agricultural loans. Further, community banks operate in areas many other banks won’t touch, serving as the only physical banking presence in nearly one in five U.S. counties, according to the FDIC.

The legislation, which passed the Senate Banking Committee in December on a strong bipartisan vote, includes numerous provisions. It:

— Provides “qualified mortgage” status for portfolio mortgage loans at most community banks;

— Simplifies community bank capital requirements;

— Expands eligibility for the 18-month regulatory examination cycle to more community banks;

— Eases appraisal requirements to facilitate mortgage credit in local, rural communities;

— Expands access to the Federal Reserve’s Small Bank Holding Company Policy Statement to help more community banks build capital;

— Improves regulatory treatment of reciprocal deposits and certain municipal securities.

S. 2155 would stimulate local economic growth by providing much-needed community bank regulatory relief while preserving vital consumer protections and effective regulatory supervision. Main Street community banks are burdened by regulations designed for Wall Street institutions, which is fueling banking industry consolidation and leaving local communities with fewer financial services options.

M. Scott Tomlinson

Albany

Scott Tomlinson is chief executive officer of Flint Community Bank in Albany.