Hultgren bill proposing streamlined reporting for community banks passes House

The U.S. House of Representatives on March 6 approved bipartisan legislation led by U.S. Rep. Randy Hultgren (R-IL) that would require federal banking regulators to simplify reporting requirements for community banks.

The Community Bank Reporting Relief Act, H.R. 4725, would address quarterly reporting requirements that are included in the Consolidated Reports of Condition and Income report, otherwise known as the Call Report. Banking regulators use Call Report data to monitor each financial institution’s safety and soundness, performance, and risk profile, and to evaluate the overall state of the banking system, according to a summary provided by the congressman’s office.

The size of the Call Report has increased from 18 pages in 1986 to nearly 85 pages today, according to Hultgren’s staff. “I think we can agree that our federal banking regulators should have regular updates on the overall performance and health of financial institutions. However, this does not mean federal banking regulators need regular reports about every single data point on every single financial institution,” Hultgren said during floor debate prior to the House vote.

Among other provisions, H.R. 4725 would amend the Federal Deposit Insurance Act of 1950 to require federal banking agencies to issue regulations that permit institutions with less than $5 billion in assets that meet additional criteria to submit an abbreviated Call Report on a semi-annual basis, according to a summary of the bill.

“Washington needs to get out of the way so community banks can focus on meeting the needs of our communities,” Rep. Hultgren said. “The role of smaller financial institutions is especially important in more rural areas, such as my district, where larger banks tend to not have as many branches.”

Rep. Hultgren introduced H.R. 4725 on Dec. 21, 2017 with original cosponsor U.S. Rep. Andy Barr (R-KY), and cosponsors U.S. Reps. Terri Sewell (D-AL) and Luke Messer (R-IN). The House approved the measure on Tuesday by a voice vote and it has been referred to the Senate Banking, Housing, and Urban Affairs Committee for consideration.