Senate bill would exempt small banks from Basel III, Sarbanes-Oxley regulations
Senate legislation seeking to exempt small banks from Basel III and Sarbanes-Oxley regulations was introduced Wednesday by Sen. Mike Rounds (R-SD).
The Community Bank Access to Capital Act of 2017 would exempt community banks with $50 billion or less in assets from the Basel III capital rules and exempt publicly held community banks with less than $1 billion in assets from the Sarbanes-Oxley Act’s internal control attestation requirements.
Further, it would raise the consolidated asset threshold under the Federal Reserve’s Small Bank Holding Company Policy Statement from $1 billion to $5 billion, and revise the SEC definitions of “accredited” and “non-accredited” investors to attract new investors.
Rounds said the bill would enhance the ability for community banks access to capital to support lending
The Independent Community Bankers of America (ICBA) voiced its support for the bill, stating that it includes several provisions from ICBA’s Plan for Prosperity regulatory relief platform.
“ICBA strongly supports the Community Bank Access to Capital Act of 2017 and thanks Sen. Rounds for introducing this much-needed legislation,” ICBA President and CEO Camden Fine said. “Relieving community banks from excessive and unnecessary regulatory burdens will improve access to credit and support economic and jobs growth in local communities across the nation.”
ICBA will work with the House and Senate in an effort to advance this legislation.