December 19, 2017

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FSR Commends House Passage of Luetkemeyer Regulatory Modernization Bill

Reviewing actual business activities and their associated risks is a better measure of the need for enhanced supervision than a single, arbitrary measure.

FSR Commends House Passage of Luetkemeyer Regulatory Modernization Bill
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FSR Commends House Passage of Luetkemeyer Regulatory Modernization Bill

Changes to SIFI designation process will help grow the economy, better serve consumers and businesses

 

WASHINGTON – The Financial Services Roundtable (FSR) today commended the U.S. House of Representatives for passing a bill that will better identify risk and tailor regulation by reviewing a financial institution’s business activities rather than assessing arbitrary asset sizes.

“Reviewing actual business activities and their associated risks is a better measure of the need for enhanced supervision than a single, arbitrary measure,” said FSR CEO Tim Pawlenty. “This bill will lead to more effective regulations while also allowing financial institutions to help grow the economy and serve both consumers and businesses better.”

The Systemic Risk Designation Improvement Act of 2017 (H.R. 3312), sponsored by Rep. Blaine Luetkemeyer, changes the current designation method for enhanced supervision of banks by replacing the $50 billion asset threshold with business activity standards to determine an institution’s systemic risk. A recent Treasury Department report also recommended the Financial Stability Oversight Council (FSOC) focus on “activities and practices within an industry” that may pose risks to U.S. financial stability.

Ahead of today’s, vote FSR sent a letter to House leadership urging Congress to advance this bipartisan bill to the President’s desk. To read the full letter, click here.

 

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About The Author

The Financial Services Roundtable represents the largest integrated financial services companies providing banking, insurance, payment and investment products and services to the American consumer. Member companies participate through the Chief Executive Officer and other senior executives nominated by the CEO. FSR member companies provide fuel for America’s economic engine, accounting for $92.7 trillion in managed assets, $1.2 trillion in revenue, and 2.3 million jobs.

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