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 amends several acts, including the Consumer Financial Protection Act of 2010, the Bank Holding Company Act of 1956, the Truth in Lending Act, and the Economic Growth, Regulatory Relief, and Consumer Protection Act. The bill proposes raising the asset threshold from $10 billion to $50 billion for various regulatory requirements.
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. However, it might also increase the risk of financial instability due to reduced oversight.
Potential Benefits
- Reduced regulatory compliance costs for mid-sized financial institutions.
- Potential for increased lending to small businesses and consumers.
- Greater flexibility for financial institutions to innovate and compete.
- Could free up resources for community banks to invest in local economies.
- May lead to increased profitability for affected financial institutions.
Most Benefited Areas:
Potential Disadvantages
- Increased risk of financial instability due to reduced regulatory oversight.
- Potential for increased risk-taking behavior by financial institutions.
- Reduced consumer protection due to less stringent regulations.
- Possibility of exacerbating income inequality if benefits disproportionately accrue to wealthy individuals and corporations.
- May lead to decreased competition if larger institutions are able to consolidate their market share.
Most Disadvantaged Areas:
Constitutional Alignment
The bill appears to align with Congress's power to regulate commerce under Article I, Section 8 of the Constitution. This section grants Congress the power to regulate interstate commerce, which includes the regulation of financial institutions. The bill does not appear to infringe on any specific constitutional rights or protections.
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).