Small Banks Glad for Dodd-Frank Rollbacks
Earlier this week, the U.S. Senate voted to roll back some Dodd-Frank banking rules. Small bankers say the move is a long-awaited good thing.
Senate Bill 2155 would allow smaller banks to omit their cash balances when figuring how much capital they need to hold.
The intention is to allow smaller banks to operate at higher thresholds before being subjected to the kind of regulatory hurdles large banks need to comply with since the 2008 crash.
Republican Sen. John Cornyn of Texas voted for the bill. In a Facebook post Thursday, Cornyn said the bill aims to protect small banks from expensive overregulation that has led to escalating consolidations across the country.
Alan Sanderson, president of Fannin Bank in Bonham and Honey Groove, says he’s glad federal lawmakers have come to understand how important the smaller community banks are in this country.
“We make most of the small business loan,” Sanderson says. “We make most of the agricultural loans. And added regulation, added this-n-that really hinders you being able to support your community.”
The bipartisan bill passed in the US Senate 67-31 Wednesday. It is on its way to the House, where it is expected to pass.