The American Fintech Council (AFC) expressed its support for Patrick J. Kennedy, Jr., who is set to testify at the first House Financial Services Committee hearing of 2025. The hearing will address community banking issues and discuss potential legislative reforms aimed at enhancing responsible innovation and supporting community lenders.
Kennedy, a Founding Partner of Kennedy Sutherland LLP and Executive Chairman of TransPecos Banks, is expected to highlight the need for regulatory examinations that are clear, consistent, and risk-based. His testimony will advocate for an open dialogue between banks and regulators.
A key focus of the hearing will be the Fair Audits and Inspections for Regulators (FAIR) Exams Act. This proposed legislation aims to establish an Office of Independent Examination Review to ensure greater accountability in financial institution examinations. It also seeks to prevent regulatory retaliation against banks appealing supervisory decisions and mandates that examiners complete reports within 60 days.
Ian P. Moloney, Senior Vice President and Head of Policy and Regulatory Affairs at AFC, will attend the hearing alongside Kennedy. He emphasized AFC's commitment to working with lawmakers on fostering a balanced regulatory environment. "Regulatory uncertainty stifles innovation," said Moloney. "The FAIR Exams Act is a commonsense solution that ensures examinations are conducted fairly."
AFC remains committed to advancing responsible financial innovation while promoting a competitive regulatory framework that encourages consumer access.