Press Release: Washington, D.C. (May 7, 2024)—The Independent Community Bankers of America (ICBA) today issued the following statement on regulators’ proposed rulemaking on incentive-based compensation arrangements.
“ICBA and the nation’s community banks urge federal banking regulators to withdraw their incomplete proposed rule on incentive-based compensation, which lacks the support from all of the regulatory agencies that must participate in the rulemaking according to statute. Regulators should postpone the proposal until all of the agencies are in agreement.
“As FDIC Vice Chairman Travis Hill said following the release of the proposal — which the FDIC advanced behind closed doors via a notational vote — moving ahead without the participation of all relevant agencies raises the question of whether commenters should invest time and resources to respond to the proposal.
“Community banks are already inundated with unnecessary and duplicative regulation. This purely political proposal, which cannot even be published in the Federal Register because of its deviation from federal statute, represents an unnecessary exercise that would merely serve to divert community banks from meeting the needs of local communities. To avoid confusion and duplicative rulemaking efforts, we call on regulators to withdraw the proposal and pause public comments on the rulemaking until all of the necessary agencies are in agreement.”
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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