• Bank Regulatory Relief Bill Signed by the President
  • June 8, 2018 | Author: Joan S. Guilfoyle
  • Law Firm: Jones Walker LLP - Washington Office
  • On May 24, 2018, President Trump signed into law the Economic Growth, Regulatory Relief and Consumer Protection Act (the “Act”). The Act is unchanged from the Senate’s version of regulatory relief passed in March and by the House of Representatives on May 22, 2018. While not as comprehensive as some in the industry had hoped, it does offers targeted relief from some of the more onerous provisions facing both community banks and larger institutions as well. In particular, community banks with under $10 billion in total assets will benefit from the simplification of capital requirements, the creation of a new safe harbor for complying with the “qualified loans” and ability-to-pay provisions of the Truth in Lending Act, and relief from certain compliance provisions. Larger institutions will also benefit from the passage of the Act as it immediately increases the threshold for the imposition of enhanced prudential standards from $50 billion to $100 billion, with a further increase to $250 billion to become effective 18 months after the effective date of the Act.