House Financial Services Committee to be led by French Hill

House Financial Services Committee to be led by French Hill

In the U.S., Rep. French Hill, R-AR, has unveiled a comprehensive plan titled "Make Community Banking Great Again." This initiative, aimed at reducing regulatory burdens and improving the operating environment for community banks, is a response to the perceived disproportionate impact of the Dodd-Frank Act on these financial institutions [1].

The plan proposes targeted regulatory reforms to restore community banks’ competitiveness and sustainability. Key components include:

1. Reevaluating and scaling back regulatory requirements imposed under Dodd-Frank to reduce compliance costs and operational complexity for smaller banks [1].
2. Enhancing accountability and fairness in bank regulation and supervision, for example by establishing clearer standards and processes for banks to appeal regulatory and supervisory decisions [2].
3. Preventing regulatory overreach and duplicative enforcement actions, which Hill argues have shifted banking activity away from community institutions and harmed consumer access [1][2].

The broader goal is to support community banks' ability to serve local businesses and consumers by lessening the regulatory complexity that has contributed to industry consolidation and bank closures [1].

In addition to these measures, Hill's plan includes access to capital, revisiting bank resolution procedures, and welcoming innovation related to banks' third-party relationships [3].

Hill's efforts align with recent executive orders and legislative proposals aiming to create national standards that preempt inconsistent state-level banking regulations to ensure uniform access and treatment for customers across states [2].

Prior to his political career, Hill served as CEO of Delta Trust & Banking Corp. [6]. He is also a member of the House Permanent Select Committee on Intelligence and the House Foreign Affairs Committee [7].

In a recent vote, Hill was chosen as the next chairman of the House Financial Services Committee, a position that allows him to oversee several federal departments, including the Department of the Treasury, the Federal Reserve, the Securities and Exchange Commission, and government-sponsored entities such as Fannie Mae and Freddie Mac [8].

Rep. Hill's FIT21 legislation, approved by the House in May, aims to create a comprehensive regulatory framework for digital assets that protects consumers and investors while maintaining the country’s competitive edge in blockchain innovation [9]. McHenry, the current ranking member of the House Financial Services Committee, has stated that under Hill's leadership, Republicans will build on their work to enact a clear regulatory framework and robust consumer protections for the digital asset ecosystem [10].

This new community banking plan, published in Hill's quest to win the chair role, advocates for reinstating regulatory tailoring for community banks, increasing the consolidated asset threshold, and easing bank mergers and acquisitions [4]. Hill has also expressed a goal to create a favorable market for cryptocurrencies during an interview with CNBC [5].

Industry leaders have praised Hill's community banking plan, stating that his recommendations would ease regulations on community banks and help them thrive in a competitive marketplace [1]. Trump's team has been looking to reduce, merge or dismantle top bank regulators, according to a Wall Street Journal report [6]. With Hill's leadership, the future of community banking in the U.S. may see significant changes aimed at revitalizing the sector and supporting local businesses and consumers.

References: [1] Rep. French Hill's Community Banking Plan, [2] Hill's Community Banking Plan Aligns with White House Executive Orders, [3] Hill's Community Banking Plan Includes Access to Capital, [4] Hill's Community Banking Plan Advocates for Regulatory Tailoring, [5] Rep. French Hill Expresses Goal to Create Favorable Market for Cryptocurrencies, [6] Trump's Team Looks to Reduce Bank Regulators, [7] Rep. French Hill's Committee Assignments, [8] Hill Elected as Chairman of House Financial Services Committee, [9] Hill's FIT21 Legislation Approved by House, [10] McHenry on Hill's Leadership for Digital Asset Regulation.

1. Rep. French Hill's recently unveiled plan, titled "Make Community Banking Great Again," proposes targeted regulatory reforms in the realm of finance, aiming to reduce regulatory burdens and improve the operating environment for community banks.
2. Hill's plan, aligned with recent executive orders and legislative proposals, aims to create national standards that preempt inconsistent state-level banking regulations, with the goal of ensuring uniform access and treatment for customers across states.
3. In addition to his plan for community banks, Hill's FIT21 legislation seeks to establish a comprehensive regulatory framework for digital assets, protecting consumers and investors while maintaining the country’s competitive edge in blockchain innovation, indicating a broader interest in the wider realm of investing and business policy-and-legislation.

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