Washington, D.C. (Feb. 22, 2024)—The Independent Community Bankers of America today called on federal banking regulators to ensure their latest regulatory review under the Economic Growth and Regulatory Paperwork Reduction Act provides substantive regulatory relief for community banks, which previous reviews under the law have failed to do.
“Consolidation within the industry, acquisitions of community banks by credit unions, and a small number of de novo bank applications are symptoms of the underlying problem: that the cumulative impact of regulatory burden on community banks is overwhelming the industry, and causing long-term damage to the communities that depend on these vitally important local resources,” ICBA President and CEO Rebeca Romero Rainey wrote in a comment letter to the agencies.
In its comments, ICBA urged the agencies to take three key steps as part of the new EGRPRA review:
Hire an independent outside consultant to quantify the current regulatory burden on community banks, including all federal banking and Consumer Financial Protection Bureau regulations that apply to community banks.
Hold at least two outreach meetings in every region of the country and allow community bankers to address CFPB regulations in their comments to the agencies.
Conduct a thorough review of their past assessments of regulation under the Paperwork Reduction Act of 1995 and the Regulatory Flexibility Act, which have consistently understated the burden of new regulations on community banks.
The comment letter is available on ICBA’s website.
About ICBA
The Independent Community Bankers of America® has one mission: to create and promote an environment where community banks flourish. We power the potential of the nation’s community banks through effective advocacy, education, and innovation.
As local and trusted sources of credit, America’s community banks leverage their relationship-based business model and innovative offerings to channel deposits into the neighborhoods they serve, creating jobs, fostering economic prosperity, and fueling their customers’ financial goals and dreams. For more information, visit ICBA’s website at icba.org.
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