Blaine Luetkemeyer: “Today, the House will consider H.R. 3791, legislation to raise the consolidated asset threshold under the Federal…”

“Today, the House will consider H.R. 3791, legislation to raise the consolidated asset threshold under the Federal Reserve's small bank holding company policy statement. To say that the current regulatory environment presents challenges for small financial institutions would be a drastic understatement. Today, regulators require more and more from community-based institutions in terms of both regulatory oversight and capital requirements. Mrs. Love's bill seeks to alleviate some of the pressures that are facing our community banks. Small bank and thrift holding companies confront unique challenges with regard to capital formation, which is of particular concern at a time when regulators are demanding more capital. In understanding these challenges, the Fed has recognized that small banks have limited access to equity financing. The Federal Reserve's small bank holding company policy statement gives relief from certain capital guidelines and requirements, making it easier for a community bank to raise capital and issue debt and to make acquisitions and form new banks and thrift holding companies. {time} 1300 Our Nation's smallest banks have faced significant recession, consolidation, and an alarming number of bank failures. By increasing the threshold in the Fed's policy statement from $1 billion to $5 billion, we have the opportunity to help an additional 400 true community banks.…”