Central South Dakota News

U.S. Senator Mike Rounds has reintroduced the Taking Account of Institutions with Low Operation Risk (TAILOR) Act, aiming to adjust regulatory requirements for financial institutions based on their risk profiles and business models. The legislation seeks to alleviate the regulatory burden on smaller banks and credit unions.

Senator Rounds stated, “During the Biden administration, financial institutions across South Dakota were negatively impacted by burdensome, unnecessary regulations due to disproportionate compliance costs, with consumers ultimately paying the price.” He added that the bill would allow these institutions to focus more on customer service rather than compliance.

The bill's original cosponsors include Senators Kevin Cramer, Steve Daines, Bill Hagerty, Cynthia Lummis, and Thom Tillis.

The TAILOR Act mandates that federal agencies like the Office of the Comptroller of the Currency and others consider individual financial institutions' risk profiles when formulating regulations. It also requires these agencies to submit an annual report to Congress detailing regulatory adjustments and bank supervision modernization efforts.

Additionally, a review of all regulations issued since 2010 under the Dodd-Frank Act is required. If found non-compliant with the TAILOR Act standards, revisions will be necessary. The act also directs agencies to lessen reporting requirements for community banks.