Young: Banking Reform Bill Helps Indiana Small Businesses and Community Lenders
WASHINGTON, D.C. – U.S. Senator Todd Young (R-Ind.) is keeping his promise to roll back harmful Dodd-Frank financial regulations by supporting the bipartisan Economic Growth, Regulatory Relief, and Consumer Protection Act, S.2155, which is being debated on the Senate floor this week.
Small businesses employ nearly one-half of the private workforce in Indiana. While small businesses rely on credit unions and community banks in order to expand and hire more workers, many credit unions and community banks have struggled to stay in business amid the high costs of complying with Dodd-Frank regulations. The Economic Growth, Regulatory Relief, and Consumer Protection Act reforms regulations that harm creditworthy businesses and individuals by subjecting small lenders to the same regulatory and compliance demands as big Wall Street banks. It also includes important consumer protections for veterans, senior citizens, victims of fraud and people who fall on tough financial times.
“When the burdensome Dodd-Frank Act was enacted during the Obama administration, it was Indiana small businesses, community banks, credit unions, and the people who rely on them that suffered. I have long advocated for rolling back these harmful regulations, and the reforms in this bipartisan bill will provide needed regulatory relief, while maintaining important consumer protections,” said Senator Todd Young.
Indiana community lenders, small banks, and credit unions have been outspoken on the need to modernize regulations in a way that makes sense for small financial institutions, benefitting consumers and encouraging economic growth.
What they are saying:
John McKenzie, President, Indiana Credit Union League: “Indiana’s credit unions, with 2.4 million members, appreciate how this bill reduces regulatory burdens and costs in some key areas. As member-owned not-for-profit cooperatives, it is our credit union members who ultimately benefit from reductions in unnecessary regulations and we thank Senator Young for his support of common sense regulatory relief.”
Amber R. Van Til, President and CEO, Indiana Bankers Association: “The Indiana Bankers Association urges the passage of S. 2155, the Economic Growth, Regulatory Relief and Consumer Protection Act, for the benefit of consumers and communities nationwide. This balanced, bipartisan legislation removes some of the ill-fitting regulations which often prevent lending to creditworthy businesses and individuals. Our member banks are eager to focus less on regulatory minutia and more on supporting the communities they serve through prudent lending.”
Kevin Ryan, President and CEO, Financial Center First Credit Union, Indianapolis, Indiana: “We are all extremely fortunate in Indiana to have Senator Todd Young supporting much needed regulatory relief for Indiana’s community banks and credit unions. The Economic Growth, Regulatory Relief and Consumer Protection Act, will lower the cost of borrowing for thousands of Indiana businesses and put money back into the pockets of Hoosier families.”
Lucas White, President, The Fountain Trust Company, Covington, Indiana: “The tailored regulation in S.2155 will allow community banks to spend less time doing reports for the government and more time making loans to help consumers and small businesses. This is a step in the right direction to reduce the regulatory burden on community banks instead of always adding more rules. The changes to the qualified mortgage rules should allow more consumers to get mortgages from local community banks instead of seeking financing from shadow lenders.”
Bob Jones, Chairman, Mid-Sized Bank Coalition of America; Chairman and CEO, Old National Bancorp, Evansville, Indiana: “By improving the effectiveness of regulating complexity, without burdening simpler business models with disproportionately higher costs of compliance, S. 2155, the Economic Growth, Regulatory Relief, and Consumer Protection Act, will enable mid-sized banks to do more. Simply put, this legislation will empower mid-sized banks to exceed the expectations of everyday Americans. We firmly believe this legislation will foster economic expansion and opportunity by carefully tailoring regulatory requirements that are currently preventing our economy from operating at its full potential. The MBCA and its member banks strongly endorse S. 2155.”
Casey Lee Johnson, Assistant Vice President and Mortgage Loan Underwriter, Home Bank, Martinsville, Indiana: “From an underwriter’s perspective, Section 101 of S. 2155 will provide a substantial positive impact to financial institutions, their communities and customers. When the Dodd-Frank Act was released, the requirements were overbearing, making it difficult for a financial institution to do the right thing for its borrowers. The regulations were put into place to protect our borrowers, but instead they created more red tape and complicated the process so that is becoming more and more like rocket science. If S. 2155 passes, certain financial institutions will gain back the flexibility needed to best serve their communities and customers.”
Jamie R. Shinabarger, President and CEO, Springs Valley Bank & Trust Company: “The passage of Senate Bill 2155 is a must for the long-term survival of community banking, which is the engine of commerce across the United States. A large percentage of small business and consumer financing is provided by the community banking segment of the industry. Senate Bill 2155 will allow community bankers to focus on serving our customers, not complying with a multitude of redundant and restrictive regulations which were put into place in the wake of abuses by largely non-community bank financial providers.”
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