"Elizabeth Warren pushes two-tiered banking regulation"

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Elizabeth Warren pushes two-tiered banking regulation

By Brena Swanson at Housing Wire

http://www.housingwire.com/news/2013/06/13/elizabeth-warren-pushes-two-tiered-banking-regulation

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Community banks represented 95% of all banking organizations in 2011 but represented only 14% of all the banking assets in the nation. However, community banks held 46% of all the small loans to businesses, according to a study done by the Federal Deposit Insurance Corp.

In light of this, Elizabeth Warren, D-Mass., said in a hearing with the Senate committee on Banking, Housing and Urban Affairs, "Are we reaching a point where we should have a two-tiered regulatory system?"

Small banks are subject to many regulations that were written for larger institutions, so now there is a regulation system that will in effect crush the smaller institutions, Warren explained.

Since the housing crisis, community banks have made significant progress, but they still have a ways to go, Lawrance Evans, director of financial markets and community investment with the Government Accountability Office.


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