In response to the OCC’s announced decision to combine its community, midsize, and large bank supervision functions, ICBA said merging supervisory functions threatens to dilute the nuanced oversight that effective community bank supervision requires and jeopardizes the tailored regulatory approach that community banks deserve.
Details: In a national press release, ICBA President and CEO Rebeca Romero Rainey said it is counterintuitive to consolidate supervisory approaches across institutions with vastly different business models and risk profiles. “This change marks a step in the wrong direction and contradicts the agency’s own stated commitment to tailoring supervision based on a bank’s size, complexity, and risk profile—rather than applying a one-size-fits-all model,” she said.
ICBA View: ICBA urged the OCC to preserve a dedicated community bank supervision framework that reflects the distinct role of community banks, ensures proportionate oversight, and protects the stability, diversity, and choice that community banks uniquely provide to consumers and local economies.
