Washington, D.C. (Feb. 15, 2022) — The Independent Community Bankers of America (ICBA) called on senators to oppose amendments to the Postal Service Reform Act of 2022 (H.R. 3076) that would authorize the U.S. Postal Service to offer additional banking services. ICBA also called on the Senate to amend Section 3703 of the act, which would allow USPS to partner with state and local governments on non-postal services, to explicitly prohibit postal banking.
In a letter to Senate leaders, ICBA President and CEO Rebeca Romero Rainey said postal banking would lead to significant revenue losses for taxpayers that would divert resources from the USPS’s core mission of delivering mail on time. She noted the lackluster results of a postal banking pilot program launched in September that had only six customers as of January, indicating almost nonexistent demand and a failure to generate revenue to cover expenses.
“Congress should focus on shoring up the finances of a critical government agency and explore better and proven alternatives for expanding access to low-cost financial services such as empowering minority depository institutions and promoting the use of financial technology in partnership with established community banks,” Romero Rainey said.
ICBA detailed postal banking flaws in a three-part series of policy briefs to Congress last year, which said:
- The pursuit of postal banking would harm the USPS’s already-stressed primary function—mail delivery.
- USPS does not possess the know-how to succeed at banking.
- Community banks are committed to serving their communities, including unbanked populations.
The Independent Community Bankers of America® creates and promotes an environment where community banks flourish. ICBA is dedicated exclusively to representing the interests of the community banking industry and its membership through effective advocacy, best-in-class education, and high-quality products and services.
With nearly 50,000 locations nationwide, community banks constitute roughly 99 percent of all banks, employ nearly 700,000 Americans and are the only physical banking presence in one in three U.S. counties. Holding nearly $5.9 trillion in assets, over $4.9 trillion in deposits, and more than $3.5 trillion in loans to consumers, small businesses and the agricultural community, community banks channel local deposits into the Main Streets and neighborhoods they serve, spurring job creation, fostering innovation and fueling their customers’ dreams in communities throughout America. For more information, visit ICBA’s website at www.icba.org.