WASHINGTON—U.S. Senators Mike Rounds (R-SD) and Angus King (I-ME) have introduced a bill that would give community banks, small businesses, and credit unions a say in the Consumer Financial Protection Bureau rulemaking process.
S.1963, also known as the Bureau of Consumer Financial Protection Advisory Board Enforcement Act, would create a small business advisory board within the CFPB. It would also make permanent community bank and credit union panels within the CFPB. Under the proposed legislation, each panel would be required to adequately represent members from rural and underserved areas, Rounds said in a statement.
"As the CFPB continues to make decisions that affect every American, it is critical for rural areas, community banks, small businesses and credit unions to have a voice," said Rounds, a member of the Senate Banking Committee, in a statement. “This is particularly important in rural states like South Dakota. Our bill makes certain that voice will be heard."
The CFPB currently has four advisory boards for setting policy, only one of which, the Consumer Advisory Board, is required by Dodd-Frank. The new bill would create an additional advisory committee for small businesses, in addition to codifying two existing advisory boards, the Community Bank Advisory Board and the Credit Union Advisory Council.
A similar bill, H.R. 1195, passed in the House in April. In late July, the House Financial Services Committee approved a series of bills that would offer regulatory relief to community banks and smaller financial institutions.