With the 119th Congress and the Trump administration beginning their terms, the Independent Community Bankers of America (ICBA) has released new polling data. The results indicate strong public support for community bank policy priorities as outlined in ICBA's "Repair, Reform, and Thrive" plan and an open letter to Congress.
ICBA President and CEO Rebeca Romero Rainey stated, "Policymakers in Washington face a critical opportunity to advance needed changes to financial services regulations that will amplify the positive economic impact of community banks across America, and new ICBA polling demonstrates that Americans from coast to coast support the community banking industry’s views on key policy issues." She added that with Morning Consult's polling showing public understanding of locally based economic growth, ICBA is eager to collaborate with Congress and the Trump administration on policy reforms.
The poll conducted by Morning Consult reveals several insights:
- **Community Bank Formation**: 61% of respondents believe federal agencies should address regulatory restrictions hindering new community bank formation. Additionally, 57% see these formations as vital for a healthy banking system.
- **Rural Communities**: A significant 67% support tax relief for lending institutions in rural areas, aligning with the bipartisan Access to Credit for our Rural Economy (ACRE) Act. Furthermore, 69% emphasize Congress should ensure adequate funding for agricultural programs amidst high inflation and interest rates.
- **Small-Business Reporting Rules**: More than half (55%) think Congress should overturn rules requiring banks to collect demographic data from small-business credit applications due to potential negative impacts on lending.
- **Credit Union Policies**: There is notable support (62%) for taxing credit unions operating like banks. Similarly, 62% believe Congress should review whether credit union tax exemptions are justified. Concerns were also raised about credit unions using tax savings for luxury purchases or marketing expenses.
- **Deposit Insurance Coverage**: A majority (58%) agree that policymakers should increase deposit insurance limits above $250,000.
The "Repair, Reform, and Thrive" plan presents a regulatory agenda aimed at addressing detrimental regulations affecting communities while empowering local banking systems. Both this plan and ICBA’s letter to Congress can be accessed via their website.
The Independent Community Bankers of America aims to foster an environment where community banks can thrive through advocacy, education, and innovation. By leveraging relationship-based business models and innovative offerings, these banks aim to boost local economies by creating jobs and supporting financial goals within their communities.