U.S. Senate approved the plan of releasing small and medium banks from the most stringent requirements, stipulated by Dodd-Frank Act, writes Finance. ua.
Therefore, U.S. legislators took an important step towards easing restrictions for the financial sector, imposed after the financial crisis, Finance.ua reports quoting The Wall Street Journal.
The draft law, approved by the Senate, stipulates that for the volume of banking assets, the bar will be raised from $50 bln to $250 bln. With such bar, the financial institution becomes systemically important. It will release American Express Co., BB&T Corp., KeyCorp and other banks from tough requirements and expenses, envisaged for systemically important financial companies, the number of which will reduce from 30 to 12.
In addition, the so-called Volcker rule will not apply to the banks with assets, amounting to less than $10 bln.
In addition, the banks, which disburse less than 500 mortgage loans per year, will not have to provide the regulators with data on the number of loans, disbursed to people of this or that race, as well as with this or that income level, without evident signs of lending discrimination in the financial company.
The authors of the draft law state that easing the restrictions will contribute to the growth of lending and will boost U.S. economy. However, his opponents fear the return of unnecessary financial risks and negative consequences for consumers.
