Washington, D.C. – BPI today expressed enthusiastic support for legislation enabling banks to hire more rehabilitated people with prior minor criminal records. The bipartisan Fair Hiring in Banking Act (H.R. 5911) passed in the House of Representatives today as part of the National Defense Authorization Act. The NDAA will soon be voted on in the Senate where it is expected to pass and then be signed into law by the President before the end of the year.
“This legislation will give Americans with minor records a clear pathway to stable, good-paying jobs in the banking industry and a second chance to realize their potential. Not only will these candidates gain access to new opportunities, but our nation’s banks and our economy will also benefit from the skills of this untapped pool of talent. Thanks to Reps. Beatty, Auchincloss and Sessions and Sens. Manchin, Tillis, Coons and Van Hollen for their support of this important legislation.” – BPI President and CEO Greg Baer
Background: BPI has long supported this legislation, which would amend Section 19 of the Federal Deposit Insurance Act to clear certain barriers to hiring rehabilitated candidates. It would expand the process for automatic waivers from the law’s limits on such hiring at banks. For example, a job candidate who committed an offense seven or more years ago would be subject to certain exemptions. The FDIC in 2020 helpfully expanded eligibility for that process, but the legislation goes further by amending the underlying statute. Without these changes, banks face obstacles to hiring people with records due to the long regulatory approval process for such candidates.
Why it matters: The bill will enhance economic advancement opportunities for job seekers with minor records, and give banks the flexibility they need to hire more rehabilitated candidates.
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.