Texas Bankers Association Statement on Chairman Jeb Hensarling's The Financial Choice Act
AUSTIN, June 7, 2016 – The Texas Bankers Association applauds Financial Services Committee Chairman Jeb Hensarling’s efforts to bring meaningful regulatory relief to community banks through The Financial Choice Act. Community banks have been overregulated since the Dodd-Frank Act was passed in 2010.
In Texas alone, which has a very healthy banking system, we have lost 143 banks since the enactment of Dodd-Frank. Throughout the U.S., the number has reached 1,639. Just last week, the FDIC reported that in the first quarter of 2016, while only one bank failed, 58 institutions agreed to be acquired in a merger transaction. Most alarmingly of all, no new banks were chartered over the last three months, which has been the consistent pattern since the enactment of the Dodd-Frank Act.
TBA has been working hard for the past six years to obtain regulatory relief for community banks. The Financial Choice Act offers changes that will help well-capitalized community banks continue to provide the services upon which their customers and communities depend, while keeping in place regulations that will protect consumers from fraud and deception.
The Financial Choice Act offers relief to highly capitalized, well-managed banks; improves the accountability of the Consumer Financial Protection Bureau by changing its structure to a five-member commission; demands accountability from financial regulators by placing them under the appropriations process and requiring that they conduct a detailed cost-benefit analysis of all proposed regulations; ends “Too Big to Fail” and bank bailouts; repeals the Volcker Rule; and provides regulatory relief for community banks by incorporating more than two dozen regulatory relief bills.
We look forward to working with Chairman Hensarling, the Texas delegation and the U.S. Senate in seeing as much of this legislation as possible being enacted in 2016.
Serving Texas bankers since 1885, TBA is the largest and oldest state bankers association in the nation.