9 senators urge eased reg burdens for credit unions

Nine Republican Senate Banking Committee members on Friday urged the heads of NCUA, the Federal Reserve, FDIC and the Office of the Comptroller of the Currency to take action under the Economic Growth and Regulatory Paperwork Reductions Act to ease credit unions’ and community banks’ regulatory burden.

The letter was signed by Sens. Mike Crapo, R-Idaho, Dean Heller, R-Nev., Jerry Moran, R-Kan., Tom Cotton, R-Ark., Michael Rounds, R-S.D., Pat Toomey, R-Pa., Ben Sasse, R-Neb., David Vitter, R-La., and Mark Kirk, R-Ill.

The lawmakers urged NCUA Chairman Debbie Matz, Fed Chair Janet Yellen, FDIC Chair Martin Gruenberg and Comptroller Thomas Curry to update them on the status of the EGRPRA-mandated interagency review of regulations to weed out outdated, unnecessary or unduly burdensome rules.

“A similar review, completed in 2006, was criticized because the regulators subsequently failed to repeal or eliminate many substantive regulations,” the senators wrote. “Since that review we have lost close to 1,000 banking organizations. To ensure the current review has a more successful outcome, it is critical that the regulators not only gather the necessary feedback, identify the most burdensome regulations, but actually take meaningful steps to create a regulatory environment in which traditional lending can thrive in all communities.”

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