Regulatory relief

The tightening of Senate races in Republican strongholds has raised the prospects of Democrats having even more influence on regulatory appointments and the legislative agenda.

The proposal, required by the regulatory relief package that Congress passed in May, would exempt the healthiest banks from having to count reciprocal deposits as brokered deposits.

The Senate Banking Committee said it is postponing a hearing on the implementation of regulatory relief for "logistical reasons."

Regulators will continue to issue guidance to articulate general views on appropriate practices, but they will not issue enforcement actions based on violations.

The proposed rule is another step in the agency's implementation of a regulatory relief bill that President Trump signed into law in May.

The central bank, which received broad authority after the crisis to supervise big banks, is expected to get more attention from lawmakers over its discretion to ease banks’ burden.

The agency says the effort, part of a review conducted every 10 years, will help eliminate regulatory red tape.

PNC's Todd Barnhart, incoming Consumer Bankers Association chair, says the group is concentrating on the impending process of modernizing the Community Reinvestment Act among other issues that do not require action on Capitol Hill.

Kathy Kraninger has been tight-lipped about her plans for the consumer bureau, but some point to signs that she could curb the agency's power by reducing staff and other costs.

The agencies had proposed revisions designed to make compliance less complex, but banks have expressed concern that the plan could have the opposite effect.