Washington, D.C. – The Bank Policy Institute issued a statement today on the Senate introduction of the TIER Act, which would update the statutory tailoring thresholds set on a bipartisan basis in S. 2155 to reflect economic growth, with periodic adjustments thereafter, and require the federal banking agencies to similarly review and update the non-statutory thresholds periodically.
“Adjusting these tailoring thresholds is critical to enable banks to facilitate economic growth. An expanding economy drives more demand for credit. When tailoring thresholds remain fixed and not updated to reflect economic growth, a bank’s total exposures might grow larger simply because economic output is growing, not because the bank’s portfolio is becoming riskier or more complex. However, the fixed thresholds would still subject the bank to stricter requirements. The adjustments in this crucial legislation would prevent that misalignment and thereby avoid needless costs to bank financing. We thank Senator Britt for taking the lead on this important measure.”
###
About Bank Policy Institute
The Bank Policy Institute is a nonpartisan public policy, research and advocacy group that represents universal banks, regional banks and the major foreign banks doing business in the United States. The Institute produces academic research and analysis on regulatory and monetary policy topics, analyzes and comments on proposed regulations, and represents the financial services industry with respect to cybersecurity, fraud and other information security issues.
Media Contact
Sam Fabens
Bank Policy Institute
sam.fabens@bpi.com
