WASHINGTON—Sen. Mike Rounds (R-SD) has reintroduced the “TAILOR Act,” which would require that rules be tailored to fit financial institutions’ business models and risk profiles.
The legislation would apply to the NCUA and the Consumer Financial Protection Bureau, as well as other federal financial regulatory agencies.
Rounds first introduced the “Taking Account of Institutions with Low Operation Risk” (TAILOR) Act during the previous Congress; the bill mirrors the House version, which was introduced last year by Reps. Scott Tipton (R-CO) and Andy Barr (R-KY), and cosponsored by Rep. Ed Perlmutter (D-CO). All three lawmakers are House Financial Services Committee members.
The House version was approved by the House Financial Services Committee last year.
NAFCU supports the legislation. Rounds is a member of the Senate Banking Committee and cofounder of the bipartisan caucus on payments. He spoke at NAFCU’s Congressional Caucus in September.
“As well-capitalized, low-risk financial institutions that have a long history of meeting their members’ needs, credit unions are precisely the type of institution that will benefit from Sen. Rounds’ bill,” said Jim Nussle, president/CEO of CUNA, which supports the legislation. “Regulatory and compliance-driven consolidation is taking a toll on the credit union industry, and this legislation is a step toward correcting that.”