The Consumer Financial Protection Bureau's outline of proposals for implementing small-business data collection and reporting rules is too broad and should be narrowed, ICBA said. In a comment letter to the bureau, ICBA said the plan to implement Section 1071 of the Dodd-Frank Act should only apply to large banks.
The CFPB outline proposes exempting community banks with $200 million or less in assets or up to 100 small-business loan originations. ICBA said in its letter that if the rule’s coverage threshold were increased to $1 billion or more in assets, it would exempt nearly 85 percent of all banks yet capture 90 percent of small-business loans.
ICBA also said the rule—which presents privacy concerns to small-business owners—should exempt certain categories of community banks, such as Community Development Financial Institutions, Minority Depository Institutions, and rural banks.