WASHINGTON--(BUSINESS WIRE)--The following can be attributed to Matt Well, spokesperson for the Regional Bank Coalition (RBC), on today’s Senate Banking Hearing, “Fostering Economic Growth: Midsized, Regional and Large Institution Perspective.”
“For too long, improperly calibrated banking regulations based on an arbitrary asset number have hindered economic growth—all without making the financial system sounder. Policy must ensure the U.S. economy can prosper. Utilizing a multi-factored approach to risk creates a properly calibrated environment that holds the riskiest banks to higher standards while helping less risky institutions, like regional banks, to serve as the economic backbone of their communities. This week’s Treasury report even noted that the use of arbitrary asset thresholds prevents regulators from measuring an institution’s true risk to the system. Moving away from a one-size-fits-all-approach and towards using multiple factors to measure risk is a commonsense solution that has garnered bipartisan support in two successive Congresses.
“Senator Warren herself has repeatedly noted the importance of data in bank regulation. We need to rely on more data, rather than less, to ensure we have strong economic growth and robust banking regulation.”
About the Regional Bank Coalition
The Regional Bank Coalition is a group of regional banks that support regulation based on risk and business model to ensure safety and soundness. For more information, visit www.regionalbanks.org or follow on Twitter @rgnlbanks.