H.R.3230 - Financial Institution Regulatory Tailoring Enhancement Act (119th Congress)
Summary
H.R. 3230, the Financial Institution Regulatory Tailoring Enhancement Act, seeks to increase the asset thresholds at which financial institutions become subject to certain regulatory requirements. Specifically, it raises the threshold from $10 billion to $50 billion in assets for regulations related to Bureau supervision, Volker Rule requirements, qualified mortgage requirements, and leverage and risk-based capital requirements. The bill aims to provide regulatory relief to smaller financial institutions.
Expected Effects
The primary effect of this bill would be to reduce the regulatory burden on financial institutions with assets between $10 billion and $50 billion. This could lead to increased lending and investment by these institutions. It may also reduce compliance costs, potentially freeing up resources for other activities.
Potential Benefits
- Reduced regulatory burden for mid-sized financial institutions.
- Potential for increased lending to small businesses and consumers.
- Streamlined operations for affected banks, allowing them to focus on growth.
- Reduced compliance costs, potentially leading to lower fees for customers.
- Encourages competition among financial institutions.
Most Benefited Areas:
Potential Disadvantages
- Reduced oversight of financial institutions with assets between $10 billion and $50 billion.
- Potential for increased risk-taking by these institutions, potentially destabilizing the financial system.
- May lead to decreased consumer protection due to reduced regulatory scrutiny.
- Could create an uneven playing field between larger and smaller institutions.
- Increased risk of financial mismanagement or fraud due to reduced oversight.
Constitutional Alignment
The bill appears to align with Congress's power to regulate commerce, as outlined in Article I, Section 8 of the Constitution. This section grants Congress the authority to regulate interstate commerce, which includes the regulation of financial institutions. The bill does not appear to infringe upon any specific constitutional rights or limitations.
Impact Assessment: Things You Care About ⓘ
This action has been evaluated across 19 key areas that matter to you. Scores range from 1 (highly disadvantageous) to 5 (highly beneficial).