Rep. Kustoff and Secretary Mnuchin Discuss Efforts to Ease Burden on Community Financial Institutions

Washington, D.C. – U.S. Representative David Kustoff (TN-08) yesterday discussed the need to ease the burden on community financial institutions with Treasury Secretary Steven Mnuchin in a House Financial Services Committee hearing on the Annual Report of the Financial Stability Oversight Council (FSOC).

In his questioning, the Congressman referenced a recent round table discussion that he convened in Dyersburg, Tennessee, where the group discussed a dire need to modernize the Community Reinvestment Act (CRA)

"If I can, to put it in perspective, one of the banks that I met with in the district talked about how they were required to open up a branch for CRA purposes. It is now losing about $100,000 a year," said Congressman Kustoff. "I think that this speaks to the outdated CRA requirements when it comes to "brick and mortar" facilities – those physical banks."

Congressman Kustoff then asked if the Treasury Department has plans to modernize the CRA to better suit the needs of financial institutions and the communities they serve.

Secretary Mnuchin responded: "We are focused on recommendations as to how it can better serve the community. I think in many places banks are spending a lot of money and that they are not going to the right places. We are going to be working with members in the community and banks to try to come up with proposed solutions."