ICBA voiced its support for new legislation by Rep. Andy Barr (R-Ky.) to kickstart the economic recovery in underserved areas by easing regulations that hinder de novo bank formation.
The Promoting Access to Capital in Underbanked Communities Act of 2021 directs banking regulators to phase in capital requirements—giving de novo banks up to three years to meet capital requirements—and make other adjustments that would allow underbanked populations to access banking services.
"In a time of growing financial concentration, Rep. Barr’s proposal will spur competition for financial services, expand access to credit and financial services for unbanked and underbanked Americans, and support the credit needs and economic vitality of local communities across America,” ICBA President and CEO Rebeca Romero Rainey said in a statement.
Background: Only 54 de novos have been chartered since 2010, compared to more than 1,300 between 2000 and the great recession.
