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Hill Votes to Increase Access to Credit for Small Businesses and Consumers

Press Release

Date: Dec. 1, 2016
Location: Washington, DC
Issues: Business, Consumers, and Employees Legislative Branch

Today, the House passed H.R. 6392, the Systemic Risk Designation Improvement Act of 2016. A previous version of the bipartisan bill passed the House Financial Services Committee in November of last year by a vote of 39-16. Under current law, a financial instruction is automatically designated as a systemically important financial institution (SIFI) if it has $50 billion in assets. Because of this arbitrary threshold, regional and large community banks are subject to the same level of regulation as complex, trillion-dollar banks, creating an unnecessary burden that affects consumer access to credit and services.

This bill would remove the arbitrary SIFI threshold and replace it with an evaluative process that takes into account factors other than size, including complexity and interconnectedness, to determine whether an institution poses a threat to U.S. economic stability.


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