Regulatory Relief for Regional and Community Banks

After the US elections in November 2014, Congress passed two amendments to provisions of the Dodd­Frank Wall Street Reform and Consumer Protection Act (Dodd­ Frank Act) – the so­called “swaps push­out rule” and the “Collins Amendment. As a result, and leading up to the 114th Congress, there seemed to be growing momentum and an opening for regulatory relief for community institutions. However, after the Senate Committee on Banking, Housing, and Urban Affairs held its first two hearings on the issue this month, it has become clear that the path for regulatory relief for regional and community banks remains uncertain. Indeed, battle lines are being drawn across party lines and community institutions will need to be prepared to rebut challenges to the legitimacy of their need for regulatory relief. Moreover, efforts on this issue will need to expand from ongoing outreach by trade associations to broader educational and advocacy involvement by the community institutions with their home­ state Members of Congress.