A press release from Congressman Randy Hultgren:
House Passes Hultgren Legislation to Help Community Banks
“Washington needs to get out of the way so community banks can focus on meeting the needs of our communities”
Washington, DC —Today the U.S. House passed H.R. 4725, the Community Bank Reporting Relief Act, bipartisan legislation sponsored by U.S. Representatives Randy Hultgren (R-IL-14), Andy Barr (R-KY-6) and Terri Sewell (D-AL-7), without opposition.
The bill requires federal banking regulators to simplify reporting requirements for community banks.
“I think we can agree that our federal banking regulators should have regular updates on the overall performance and health of financial institutions. However, this does not mean federal banking regulators need regular reports about every single data point on every single financial institution,” said Rep. Hultgren during floor debate.
“Washington needs to get out of the way so community banks can focus on meeting the needs of our communities.
“The role of smaller financial institutions is especially important in more rural areas, such as my district, where larger banks tend to not have as many branches.”
The Community Bank Reporting Relief Act urges regulators to provide regulatory relief for quarterly reporting requirements found in the Consolidated Reports of Condition and Income or the “Call Report.”
Banking regulators use data in the Call Report to monitor the safety and soundness, performance, and risk profile of each institution and to assess the overall condition of the banking system.
The report has grown from 18 pages in 1986, to 29 pages in 2003, to nearly 85 pages of detailed financial reporting today for some community banks.
The bill would allow banks with less than $5 billion in assets and that satisfy other criteria determined by bank regulators to submit an abbreviated report of their condition semiannually rather than every quarter.
Identical language can be found in the bipartisan Economic Growth, Regulatory Relief, and Consumer Protection Act (S. 2155).