March 2, 2018
American Banker Op-Ed on Effects of Banking Reform
AAF’s Director of Financial Services Policy, Meghan Milloy, outlined the highlights and anticipated effects of upcoming banking regulatory reform legislation today in American Banker. Among other streamlining changes, the bipartisan bill would reduce the most burdensome regulations on regional and midsized banks by raising the asset threshold at which banks fall under increased regulation. While the bill stops short of a more tailored, “activities-based” approach to regulation, its changes represent a marked improvement on the current regime.
Not only would tailored regulations allow less risky institutions to focus on their core activities, such as deposits and lending, with fewer burdens, but it would also hold the riskiest financial companies to a higher compliance standard. Proper levels of regulation enhance the safety and soundness of our financial system and enable the banks to serve their customers and communities more effectively and efficiently – goals on which both sides of the aisle can agree.