Robert Pittenger: “I thank my good friend and chairman of the Financial Institutions and Consumer Credit Subcommittee, Mr. Luetkemeyer, for…”

“I thank my good friend and chairman of the Financial Institutions and Consumer Credit Subcommittee, Mr. Luetkemeyer, for his active work on this important legislation. In the aftermath of the financial crisis, the Basel Committee expanded regulations on operational risk requirements imposed on financial institutions. Unfortunately, like many of the implemented regulations, unintended consequences were brought about. The complexity and nature of the current operational risk capital requirements have greatly diminished the availability of credit for consumers, resulting in increased costs and prices for families and small businesses. To address these concerns, H.R. 4296 limits the burden of operational risk capital requirements to a bank's current activities and businesses and permits adjustments to lessen operational risk. This will ensure that banks are holding increased capital more efficiently and will expand the credit market to better meet the needs of hardworking Americans. Let me be clear: This bill does not eliminate operational risk capital requirements but, prudently, ensures that requirements are forward-looking and appropriately tailored to a bank's current financial risk profile. As a key provision of the CHOICE Act, which passed the House in June, I want to thank Mr. Luetkemeyer for his persistence and continual leadership on this important issue. I urge all of my colleagues to please join us in supporting this commonsense, bipartisan bill.”