CBA Supports Commonsense House Financial Reform Bills

Nick Simpson

 

CBA Supports Commonsense House Financial Reform Bills

Says passage of reforms will help increase consumer access to regulated financial products

 

WASHINGTON  -- The Consumer Bankers Association wrote House Financial Services Committee Chairman Jeb Hensarling (R-Texas) and Ranking Member Maxine Waters (D-Calif.) to express support for several bills the committee is scheduled to consider during tomorrow’s mark-up.

 

“The Consumer Bankers Association appreciates the Committee’s consideration of legislation that will allow our member institutions to better serve their customers,” CBA President and CEO Richard Hunt wrote. “CBA supports the passage of these commonsense bills which will help to increase consumer access to well-regulated financial service products.”

 

CBA’s letter discussed the following pieces of legislation:

 

  • H.R. 6743 – Consumer Information Notification Requirement Act: This comprehensive approach would better serve consumers by making it easier for financial institutions to adequately protect their customers from identity theft and account fraud. CBA appreciates the committee’s work on this important issue and its long-standing support for a uniform national standard to ensure all entities that use or store sensitive consumer information have an obligation to protect it and provide notification in case of a breach.

 

  • H.R. 6158 – Brokered Deposit Affiliate-Subsidiary Modernization Act: Treating deposit funds originated by a bank’s subsidiary or affiliate as brokered imposes unnecessary burdens and ultimately limits customer access to bank services and products. CBA supports the legislation revising the definition of brokered deposit to exempt deposits collected through an affiliate or subsidiary from higher deposit insurance assessments and other unwarranted regulatory treatment. The definition of deposit broker was adopted by Congress in 1989 and limitations on brokered deposits were enacted in 1991. Over the nearly three decades since, there has been vast technological innovation and new deposit account programs have entered the market changing the manner in which banks solicit deposits and interact with their customers.

 

  • H.R. 5534, Give Useful Information to Define Effective Compliance Act: The GUIDE Act would provide a statutory framework for the Bureau of Consumer Financial Protection’s (BCFP) issuance of interpretative rules and guidance to facilitate industry compliance. A clear understanding of the rules of the road would help financial institutions meet statutory and regulatory intentions and ultimately better serve their customers.

 

A full copy of the letter is available here.

 

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 About the Consumer Bankers Association
The Consumer Bankers Association represents America’s leading retail banks. We promote policies to create a stronger industry and economy. Established in 1919, CBA’s corporate member institutions account for 1.7 million jobs in America, extend roughly $4 trillion in consumer loans and provide $275 billion in small business loans annually. Follow us on Twitter @consumerbankers.