ICBA urges committee to enhance data privacy bill

ICBA expressed support for provisions of legislation designed to improve consumer privacy and data security accountability for more entities that handle consumer data.

Data Privacy Bill: In a written statement for a House Financial Services Committee hearing, ICBA said policymakers should ensure the financial data privacy bill:

• Expands a provision that applies Gramm-Leach-Bliley Act standards on data aggregators by including all permissioned third parties.

• Holds third parties that have failed to secure consumer data liable for any breach and resulting consumer harm.

• Retains an ICBA-supported provision that directs agencies to take into account the compliance costs of new privacy rules on small financial institutions.

• Includes a national privacy standard preempting the patchwork of state privacy laws.

More: In its statement, ICBA also expressed support for separate bills to:

• Provide more flexible capital standards for de novo banks.

• Require the federal banking agencies to study barriers to entry for de novo depository institutions, including minority depository institutions, potential community development financial institutions, and depository institutions in underserved communities.