Lummis Introduces Bill to Ease Regulatory Burden on Wyoming's Community Banks

Press Release

With the goal of easing the regulatory burden on Wyoming's community banks, U.S. Senator Cynthia Lummis (R-WY) has introduced the Taking Account of Institutions with Low Operation Risk (TAILOR) Act with U.S. Senators Mike Rounds (R-SD) and Tim Scott (R-SC).

"Wyoming banks have long been burdened by unnecessary regulation," said Senator Lummis. "The TAILOR Act would require federal banking regulators to consider a community bank's business model, risk profile, and size when regulating it. This would simplify the federal rules that are currently straining dozens of banks in Wyoming. Community banks and credit unions are a backbone of Wyoming's financial system, and I'm proud to work with my colleagues Mike Rounds and Tim Scott to support them."

The TAILOR Act would require federal banking regulators to tailor rules and supervision of banks to account for business model, risk profile, and size, allowing for simplified rules and lighter regulations for community banks and credit unions. Federal banking regulators would also have to issue an annual report on the modernization of bank regulations to account for changing bank business models, technology, and community banks. These requirements apply not only to future regulations, but also to regulations adopted within the last seven years.

Senator Lummis sits on the Committee on Banking, Housing and Urban Affairs. As a longtime advocate for Wyoming community banks, she has used this role to champion local banks and credit unions by pressing President Joe Biden's nominee to the Federal Reserve Lael Brainard about whether she would impose environmental, anti-energy requirements on community banks. Brainard confirmed that if confirmed she would not require community banks to meet environmental requirements.

Source