American Bankers Association President and CEO Frank Keating expressed bankers’ strong support for the House and Senate exam fairness bills—H.R. 1553 and S. 727–that were reintroduced on April 15.
In a letter to the Senate, Mr. Keating stated as follows:
Our members are concerned that bank regulators are making decisions during the examination process that have effectively and unnecessarily reduced the amount of capital available for lending – particularly to small businesses. These decisions hinder banks’ ability to help local businesses grow and create jobs. S. 727 would address this critical issue by establishing clear examination standards and creating an independent Examination Ombudsman to ensure the consistency of all examinations. It also would ensure that financial institutions receive timely examination reports that include full documentation of the information the regulators used to make their determinations, and would create an expedited process for banks to appeal examination decisions without fear of reprisals.
Mr. Keating’s letter is available here.©2014 Katten Muchin Rosenman LLP