With the stroke of a pen, President Donald Trump enacted a regulatory relief bill on Thursday, a law that will make the most significant changes to the Dodd-Frank Act since it passed in 2010.
For much of the media, the focus has been on the law's biggest measure, a provision that would raise the "systemically important financial institution" threshold for banks to $250 billion from $50 billion. (The law immediately raises it to $100 billion, and regulators will look at the next asset tier over the next 18 months to see if any of those institutions should be considered SIFIs.)
Most of the bill, however, is aimed not at helping those large regional banks, but banks and credit unions with less than $10 billion of assets. Those provisions, which are far less controversial, have received much less press. But they may total up to a big impact for community banks.
“This hard-fought, long-awaited community bank regulatory relief legislation will put community banks in an enhanced position to foster local economic growth and prosperity,” said Rebeca Romero Rainey, president of the Independent Community Bankers of America. “By unraveling some of the suffocating regulatory burdens community banks face, they are better able to unleash their full economic potential to the benefit of their customers and communities.”
From tackling qualified mortgages to capital rules to the Volcker Rule, there are several measures of the law that may make a sizable difference. Following is a look at nine provisions of the new law that will help small banks.