The U.S. House Financial Services Committee held its first full committee hearing focused on the state of community banking and potential legislative reforms, linking the discussion to Chairman French Hill’s previously released “Principles to Make Community Bank Great Again” and the Committee’s stated focus on regulatory right-sizing, transparency, and access to funding and capital for community banks. As part of the hearing, members reviewed a package of community-bank focused bills: H.R. 478 (Promoting New Bank Formation), H.R. 940 (Fair Audits and Inspections for Regulators (FAIR) Exams Act), the Small Bank Holding Company Relief Act, H.R. 941 (Small Lenders Exempt from New Data Excessive Reporting (LENDER) Act), the Bank Loan Privacy Act, and H.R. 976 (1071 Repeal to Protect Small Business Lending Act). Subcommittee on Financial Institutions Chairman Andy Barr highlighted H.R. 478 as targeting initial capital requirements and lending restrictions that he argued have limited de novo bank formation, while Rep. Roger Williams pointed to compliance and operational burden concerns with the Consumer Financial Protection Bureau’s Section 1071 small business data collection rule as the rationale for repeal. Witnesses broadly supported the Committee’s efforts, including calls for a supervisory framework that accommodates responsible innovation and technology adoption by community banks.
U.S. Financial Services Committee 2025-02-05
U.S. House Financial Services Committee holds community banking hearing and reviews bills to ease exams and reporting and spur new bank formation
The U.S. House Financial Services Committee held a hearing on community banking and potential reforms, referencing Chairman French Hill’s principles for enhancing community banks. The hearing reviewed bills, including H.R. 478 and H.R. 976, addressing initial capital requirements and the repeal of Section 1071. Witnesses supported the Committee's focus on regulatory adjustments and innovation in community banking.