Brooklyn, N.Y. – Congresswoman Yvette D. Clarke has asked the Consumer Financial Protection Bureau (CFPB) to examine the effect of regulations on credit unions and community banks, to protect these institutions from prohibitive compliance costs.
Many of the regulations that have been implemented by the agency are intended to protect consumers from fraudulent practices, such as deceptive loans for home mortgages, by multi-national financial institutions.
“These one-size-fits-all solutions, the unintended consequences often times are not worth it,” said Congresswoman Clarke at a hearing of the Small Business Committee in the House of Representatives yesterday. “Even if there’s the fear that these regulations will be burdensome and it shocks the culture of the institutions that we’re trying to preserve, then we’re defeating the purpose that we’re all seeking.”
The multi-national financial institutions often have access to extensive legal assistance and departments responsible for complying with regulations – resources that are typically unavailable to credit unions and community banks.