For example, because the largest banks present the greatest risk to the stability of our financial system, many of the regulations passed under the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010 (Dodd-Frank Act) are specifically targeted at these firms. It would be counterproductive to apply those same expectations to small banks.
Accordingly, we think it is important to tailor rules whenever possible to clearly differentiate expectations for different portfolios of banks and reduce undue burden on community banks. Tailoring regulations may be more challenging in some areas, such as rules that provide transparency and fairness in consumer transactions. Those are standards that apply throughout the financial system.