** Audio for this week’s column is unavailable**

For much of our nation’s history, community banks and credit unions, which are typically locally owned and operated, have helped rural America grow. Unlike the national conglomerates, these smaller institutions usually focus on the needs of the families and small businesses. Those living in our communities determine the decisions to lend. Employees know their customers because they are their neighbors and friends. They understand what local businesses, farms, and families need from their financial institutions.

Nebraska needs community banks and credit unions to survive, but heavy overregulation following the last financial crisis has placed a burden on these institutions. These banks do not operate like their much larger counterparts—to treat them the same only acts as a benefit to large banking corporations with huge legal departments.

The result of this overreach has been greater consolidation within the financial system. This puts everyone at risk, induces practices that led to "too big to fail" in the first place, and hurts our communities who rely on small community banks to survive and participate in the larger economy.

Recently, the Senate passed an important rollback of financial rules hurting community banks across the country. With support from senators on both sides of the aisle, the Economic Growth, Regulatory Relief, and Consumer Protection Act (S. 2155) eases a number of rules regarding small to medium-size banks and credit unions so they can provide capital to Nebraskans who need it.

Over the course of the past year, I have received an overwhelming amount of positive feedback from people and businesses across Nebraska about this bill, but the outpouring of support from Nebraska community banks and credit unions has been particularly notable. This legislation is the product of a multi-year, bipartisan process and comes from stakeholder input, multiple legislative hearings, and a committee markup.

There are many good provisions in this bill, especially in regards to helping our community banks and credit unions in Nebraska serve their customers better.

Under this legislation, well-managed, well-capitalized community banks with less than $3 billion in total assets would qualify for an 18-month exam cycle that is currently only available for banks with less than $1 billion in total assets.

The bill also allows banks with less than $5 billion in total assets to use short form call reports in the first and third quarters of the year. This will cut red tape. Currently, the quarterly call report community banks have to file comprises 80 pages of forms and 670 pages of instructions, but only a fraction of the information collected is useful to regulators or ensures the safety and soundness of these institutions.

Additionally, the Senate-passed bill includes provisions from a bipartisan standalone bill I introduced with Senator Jon Tester (D-Mont.) to simplify the inspection and compliance requirements facing Small Public Housing agencies. There are 3,800 small and rural housing authorities in the U.S. and approximately 100 public housing agencies in Nebraska. Our provision would help ensure our Small Public Housing agencies can focus on bettering the lives of residents, instead of on unnecessary reporting requirements.

Community banks and credit unions have helped support, strengthen, and grow our communities. The Economic Growth, Regulatory Relief, and Consumer Protection Act will provide these institutions with regulatory relief so that their success can continue to lead to Nebraska’s success.

Thank you for participating in the democratic process. I look forward to visiting with you again next week.