Washington. D.C. – The FDIC yesterday approved a proposal to conform FDIC rules with legislation enacted last December that gives banks more flexibility to hire people with minor criminal records. That legislation, the Fair Hiring in Banking Act, amended Section 19 of the Federal Deposit Insurance Act to broaden the ability of job candidates with minor records to work in the banking sector. The FDIC action is aimed at updating FDIC rules to reflect these legislative changes, including by specifying the types of offenses covered by Section 19.
What we’re saying: “Banking industry jobs come with fair pay, stable schedules, pathways to advancement and other benefits that set them apart. A more diverse talent pool for banking jobs that includes second-chance candidates will benefit job seekers and the economy as a whole. This FDIC action is an important step providing greater clarity to second-chance job candidates and welcoming them into the banking workforce.” – BPI President and CEO Greg Baer
Here’s the background: The banking industry has historically faced unique restrictions on second-chance hiring. Section 19 of the Federal Deposit Insurance Act sets limits on banks’ ability to hire job candidates with prior criminal offenses. The legislation enacted last year aims to expand banks’ ability to offer second-chance job opportunities for certain candidates, such as those whose prior offenses occurred seven years ago or more. The legislation changed the underlying statute to streamline regulatory approval processes for hiring candidates with minor records. Although the statute was immediately effective, the FDIC’s action yesterday is necessary to align the regulations with that legislative change and provide more certainty to job seekers. Comments on the proposal are due 60 days after publication in the Federal Register.
Bottom line: The steps taken by the FDIC and Congress will support more opportunities for rehabilitated candidates to pursue stable, high-quality banking jobs.
BPI has supported second-chance hiring legislative reform for years. To learn more, see the following links:
- BPI Supports Clearer Path to Second-Chance Job Opportunities
- BPI Welcomes House Passage of Second-Chance Hiring Legislation
- Coons, Manchin, Tillis and Van Hollen reintroduce bipartisan Fair Hiring in Banking Act
- BPI Welcomes Bill to Empower Rehabilitated Job Seekers
- Bank Associations Express Support for Fair Hiring in Banking Act
- BPI, FSF Support Bill to Enhance Bank Employment Opportunities for Rehabilitated Job Seekers
- BPI Calls for Expanding Employment Opportunities for Rehabilitated Individuals with Criminal Records
- BPI Calls on Congress to Modernize Section 19 to Increase Opportunities for Justice-Involved Individuals
- BPI Submits Letter to Congress Urging Review and Consideration of Amendments to Section 19 of Federal Deposit Insurance Act
About Bank Policy Institute.
The Bank Policy Institute (BPI) is a nonpartisan public policy, research and advocacy group, representing the nation’s leading banks and their customers. Our members include universal banks, regional banks and the major foreign banks doing business in the United States. Collectively, they employ almost 2 million Americans, make nearly half of the nation’s small business loans, and are an engine for financial innovation and economic growth.