Tester Calls On Federal Reserve to Cut Regulations for Community Banks
(U.S. Senate) - Senator Jon Tester is calling on Federal Reserve Chair Janet Yellen to cut red tape for community banks.
Tester sent a bipartisan letter to Yellen encouraging the Federal Reserve to make it easier for small banks to operate by reducing the number of reports they have to fill out, and by simplifying the capital framework currently imposed on community banks.
"Often times in states like ours, community banks are the only option for small businesses and rural families to access credit," Tester wrote. "We believe it is clear that throughout the financial crisis our community banks proved to be resilient in part because they never strayed from their core business model-serving local communities."
Community banks across Montana are a vital piece of the economy and help Montana's small business grow and create jobs. Tester authored the letter with Idaho Republican Mike Crapo. The duo noted that with less time spent filling out paperwork, these community banks will be able to focus more on the small businesses and middle-class families they currently serve.
Tester, Montana's only member on the Senate Banking Committee, has fought for community banks throughout his time in Washington. This Congress, Tester has introduced the CLEAR Act, CLEAR Relief Act, and the Community Lender Regulatory Relief and Consumer Protection Act, which would all reduce regulations on community banks from certain onerous regulations.
A link to Tester's letter can be found here.