What is the Federal Banking Agency Regulatory Relief Act?
The Federal Banking Agency Regulatory Relief Act (FBARR) is a law that was passed by Congress in 2018 to provide regulatory relief to banks and other financial institutions in the United States. It was designed to free up capital, reduce burden on banking institutions, and promote economic growth and consumer protection. The FBARR applies to banks, savings associations, and other financial institutions that are being regulated by a federal banking agency. Under the act, financial institutions may be allowed to reduce their compliance costs and regulatory burden, improve loan delivery, facilitate more efficient interstate banking and access to capital, and make lending more accessible to consumers. It also provides relief to banks that are economically mandated to remain operational, such as those that serve rural and underserved communities. The FBARR also requires that banking agencies take into consideration the risks posed to consumers when making certain regulatory decisions. It requires that every financial institution has an effective compliance management system that is in line with the laws and regulations. Furthermore, it encourages financial institutions to invest in initiatives to serve low- and moderate-income neighborhoods. In summary, the Federal Banking Agency Regulatory Relief Act provides banks and other financial institutions with relief from certain regulatory obligations, streamlines processes for loan delivering, and encourages banks to invest in initiatives that promote economic growth and consumer protection.
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