The Independent Community Bankers of America (ICBA) has issued a call to federal regulators to address the excessive regulatory burdens faced by community banks. In a press release dated May 6, 2024, ICBA Executive Vice President and Senior Regulatory Counsel Christopher Cole emphasized the importance of taking action to prevent long-term damage to communities that rely on these local financial institutions.
Cole stated, “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.” He urged the agencies to ensure that the latest review under the Economic Growth and Regulatory Paperwork Reduction Act (EGRPRA) has a meaningful impact on community bank regulation.
Among the recommendations put forth by ICBA are the hiring of an independent consultant to quantify the current regulatory burden on community banks, holding livestreamed outreach meetings in every region of the country, and setting up a dedicated website for the EGRPRA review. The organization also called for the designation of an overall director for the interagency review process to facilitate cooperation among different agencies.
Additionally, ICBA urged regulators to conduct a thorough review of past regulatory assessments and to simplify reporting procedures, streamline applications, and update policies to alleviate the burden on community banks. The complete comments from ICBA can be found on their website.
ICBA, with a mission to promote an environment where community banks flourish, aims to support these local financial institutions in driving economic prosperity and helping customers achieve their financial goals. Community banks play a vital role in channeling deposits back into the neighborhoods they serve, creating jobs, and fostering growth.
For more information about ICBA and their advocacy efforts, visit their website at icba.org.