Quigley Introduces Small Financial Institution Advisory Committees Act

WASHINGTON — Today, U.S. Representative Mike Quigley (IL-05), a member of the New Democrat Coalition, along with Rep. Robert Pittenger (NC-09) introduced the bipartisan Small Financial Institution Advisory Committees Act. The legislation would create a Community Bank Advisory Committee and a Credit Union Advisory Committee within the Treasury Department to provide the department with valuable advice and guidance on a broad range of important issues impacting community banks and credit unions throughout the country, as well as the local communities they serve.

“Community banks and credit unions serve a vital role in the success of Main Street businesses and middle-class families. However, regulations intended to reign in the irresponsible practices of large, complex, and systemically important “too-big-to-fail” institutions often unfairly impact small financial institutions and the communities they serve,” said Rep. Quigley. “Rather than a ‘one-size-fits-all’ approach, new rules and regulations should be better tailored to reflect the complexity of the financial industry and to reduce risk where it is most prevalent. The Small Financial Institution Advisory Committees Act helps accomplish this goal by ensuring community banks and credit unions have a voice within the Treasury Department.”

The bill would create a Community Bank Advisory Committee and a Credit Union Advisory Committee that would each be made up of between 15 to 20 members representing different charter types, asset sizes, geographic locations, and ownership types. Strong consideration would be given to members from rural and underserved communities. Members would serve a single two-year term and must meet at least four times annually. Findings and recommendations submitted by the Committee must be reviewed and responded to publicly by the Treasury Department.

“Small financial institutions support hardworking families and local businesses who use that support to create jobs and stimulate local growth,” said Rep. Pittenger. “Too often, Washington creates regulations with Wall Street in mind and little regard for how they will affect Main Street. This bipartisan legislation will provide credit unions and community banks a seat at the table to ensure common sense regulation.”

“While credit unions represent a relatively small portion of the financial services market, America's 6,000 credit unions serve more than 100 million Americans and collectively have more than $1 trillion in assets. When administration policy impacts credit unions, it also impacts a very significant portion of the American population, because the members of credit unions are also the owners of credit unions,” wrote Credit Union National Association (CUNA) in a statement of support. “This legislation represents an important step toward ensuring the concerns of credit unions and their members are taken into consideration in the development and implementation of the administration’s economic and fiscal policy.”

“While Treasury often engages credit unions, this legislation will formalize credit union engagement with the Department, helping to ensure that the credit union perspective continues to be heard,” the National Association of Federal Credit Unions (NAFCU) wrote in a statement of support. “Credit unions did not cause the financial crisis, but are being increasingly burdened with regulations aimed at those who did. The Small Financial Institution Advisory Committees Act will ensure that as Treasury and the Administration set future financial services policy, credit unions will have a seat at the table to provide feedback and input.”

Financial policymakers and regulators should be as well informed as possible before proposing new legislation or regulations that could significantly impact small financial institutions or their customers and members. The best way to do that is by facilitating an open and transparent discussion that provides small financial institutions with a forum to share their unique perspectives. Such advisory groups already exist at the Consumer Financial Protection Bureau, Federal Deposit Insurance Corporation, and Federal Reserve. However, there is no formal community bank or credit union engagement effort that exists within the Treasury Department. This is despite the fact that the Treasury Department plays an outsize role in coordinating and crafting the Administration’s financial legislative and regulatory proposals. Although Treasury officials hold informal meetings with representatives of small financial institutions, the public has little way of knowing if reasonable concerns are being fairly addressed.

This legislation is supported by the Independent Community Bankers of America, the Credit Union National Association, and the National Association of Federal Credit Unions.

Rep. Quigley is a member of the New Democrat Coalition, a group of congressional lawmakers that promote policies that harness American ingenuity, innovation and entrepreneurship to grow our economy. In October 2015, Rep. Quigley introduced the bipartisan SEC Small Business Advocate Act, which establishes an Office of Small Business Advocate at the Securities and Exchange Commission (SEC). In February of this year, the bill passed the House by voice vote. He was also a supporter of the Jumpstart Our Business Startups (JOBS) Act and cosponsored an original part of this legislation that focused on helping businesses raise the capital needed to expand and create jobs. This legislation was signed into law by President Obama in April 2012.