Crapo To Lead Senate Efforts OnBanking, Credit Union Regulation Reform

Washington, DC - The chairman of the Senate Banking Committee, Senator Richard Shelby (R-Alabama), has asked Idaho Senator Mike Crapo to lead efforts in the U.S. Senate to seek consensus on regulation reform for credit unions and banking institutions, a move that could offer consumers more choices and save them money. Shelby asked Crapo to craft regulatory reform legislation that will begin in the Banking Committee. The committee today heard testimony on the state of the banking industry from the heads of the five regulatory agencies that oversee the banking and credit union industry, including Federal Reserve Chairman Alan Greenspan. Crapo noted that banking reforms had already passed overwhelmingly in the House and updating regulations would benefit both consumers and the banking and credit union industries.â??A regulatory relief package should eliminate outdated, ineffective, or unduly burdensome regulations that are not justified by either the need to ensure safety and soundness or to provide consumer protection,â?? Crapo said. â??Outdated laws and regulations only serve to squander scarce resources that could otherwise be used to provide financial services demanded by customers.â?? Crapo cited statistics showing the banking industry spends around $25 billion annually to comply with regulatory requirements imposed at the federal and state levels. â??Some of those costs are ultimately passed on to consumers,â?? he said. â??Part of our role in this committee is to periodically review and, if necessary, change banking and credit union statutes that have outlived their usefulness. The financial services industry spends a lot of money complying with outdated and ineffective regulations. That is money that could instead be lent to consumers and businesses for new homes, cars and projects that fuel growth in the local community.â??â??Senator Crapo is well known in Idaho as a strong and skilled communicator - attributes that will help facilitate this much-needed undertaking,â?? said Dawn Justice, President and CEO of the Idaho Bankers Association. â??It is very gratifying to see Senator Crapoâ??s abilities acknowledged in this way by his colleagues in the Senate.â?? Alan Cameron, President and CEO of the Idaho Credit Union League said, â??We are pleased Senator Crapo has taken the lead on the Financial Services Regulatory Relief legislation. We know Senator Crapo is well-aware of the many issues affecting financial institutions and we look forward to working with him to improve the regulatory environment for credit unions and other financial institutions.â?? # # #