Scott, Colleagues Reintroduce Bill to Ease Regulatory Burden on Local Banks & Credit Unions

WASHINGTON – U.S. Senators Tim Scott (R-S.C.), Mike Rounds (R-S.D.), and Cynthia Lummis (R-Wyo.), all members of the Senate Committee on Banking, Housing and Urban Affairs, reintroduced the Taking Account of Institutions with Low Operation Risk (TAILOR) Act. This bill would require federal regulatory agencies to take risk profiles and business models of institutions into account when crafting regulations.

“By cutting red tape and changing regulators’ one-size-fits-all approach to rulemaking, the TAILOR Act will allow community banks and credit unions to better use their resources to impact the communities they serve,” said Senator Scott. “Whether it’s providing mortgages, small business loans, or consumer credit, we need to make it easier for these local institutions to do business, create wealth, and spur economic growth. I am proud to join Senators Rounds and Lummis in leading this effort, and I look forward to building further support of this commonsense policy.”

“Financial institutions across South Dakota have been negatively impacted by burdensome, unnecessary regulations due to disproportionate compliance costs,” said Senator Rounds. “These costs are ultimately passed down to consumers. The TAILOR Act would ease the regulatory burden on smaller financial institutions so they can focus resources on taking care of their customers, rather than spending time and money on compliance. I look forward to working with my colleagues on this important legislation so our smaller financial institutions are better able to meet the needs of families and local businesses.”

“Wyoming banks have long been burdened by unnecessary regulation,” said Senator Lummis. “The TAILOR Act would require federal banking regulators to consider a community bank’s business model, risk profile, and size when regulating it. This would simplify the federal rules that are currently straining dozens of banks in Wyoming. Community banks are a backbone of Wyoming’s financial system, and I’m proud to work with my colleagues Mike Rounds and Tim Scott to support them.”


  • The TAILOR Act would require regulatory agencies, such as the Office of the Comptroller of the Currency, the Board of Governors of the Federal Reserve, the Federal Deposit Insurance Corporation, the National Credit Union Administration and the Consumer Financial Protection Bureau, to take into consideration the risk profiles and business models of individual financial institutions and shape those regulations accordingly.
  • The bill requires the regulatory agencies to provide an annual report to Congress outlining the steps they have taken to adjust their regulations as well as a report on the modernization of bank supervision. 
  • The TAILOR Act also requires regulators to conduct a review of all the regulations issued by the agencies since the 2010 passage of the Dodd-Frank Act. If the review finds that the regulations issued since 2010 do not conform to the TAILOR Act, the agency would be required to revise the regulations.
  • Finally, the TAILOR Act directs regulatory agencies to reduce burdensome reporting requirements for community banks.
  • This legislation is supported by the Independent Community Bankers of America.