Financial Institution Regulatory Tailoring Enhancement Act

The Financial Institution Regulatory Tailoring Enhancement Act would raise the asset-size thresholds that trigger certain federal regulatory requirements from $10 billion to $50 billion. By doing so, mid-size and smaller banking organizations would be subject to fewer federal requirements under several major laws, while the largest institutions would continue to face the existing rules. The change applies to four areas: Consumer Financial Protection Act (CFPA) supervision, the Volcker Rule (Bank Holding Company Act), Qualified Mortgage requirements under the Truth in Lending Act (TILA), and leverage/risk-based capital rules tied to the Economic Growth, Regulatory Relief, and Consumer Protection Act (EGRRCPA). The bill’s purpose is to tailor regulation more closely to institution size, reducing regulatory burden for many banks but potentially reducing certain protections for consumers and the broader financial system at the smaller end of the threshold.