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SBA Opposes Proposed CFPB Rule

By Stephen Barlas
December 1, 2017
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Bank building

The Office of Advocacy at the U.S. Small Business Administration is pressing the Consumer Financial Protection Bureau (CFPB) to not go forward with a rule requiring small financial institutions to prepare and submit data on lending to small businesses.

 

The CFPB has put out a request for information as a preliminary step before rulemaking, which is required by the Dodd-Frank Act, a section of which amends the Equal Credit Opportunity Act to require financial institutions to report information concerning credit applications made by women-owned, minority-owned, and small businesses in order to facilitate enforcement of fair lending laws. A key concern for the advocacy office is that the CFPB apparently wants data that would cover an extensive share of the market and thereby force small banks to spend capital on new computer systems.

 

Stephen Barlas has covered Washington, D.C., for trade and professional magazines since 1981 and since 1984 for Strategic Finance and its predecessor Management Accounting. You can reach him at sbarlas@verizon.net.
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