The Independent Community Bankers of America (ICBA) has expressed its support for a new legislative initiative aimed at facilitating the formation of community banks. ICBA President and CEO Rebeca Romero Rainey released a statement on January 16, 2025, highlighting the need for this legislation to address regulatory challenges that hinder the establishment of new community banks.
Rainey stated, "With excessive regulatory burdens hindering the formation of new community banks — which are needed to preserve access to banking services in local communities — ICBA and the nation’s community bankers strongly support new legislation from Rep. Andy Barr and Sen. Cindy Hyde-Smith to reform rules on de novo banks." She emphasized that this reform was part of ICBA's recommendations to the 119th Congress, along with other legislative options aimed at supporting community banks and local economies.
The proposed Promoting New Bank Formation Act seeks to instruct regulators to gradually implement capital standards for de novo banks, remove restrictions on agricultural lending, and introduce other changes necessary for maintaining financial service access for consumers and small businesses across local communities.
Rainey added that eliminating barriers to forming de novo banks is an essential component of ICBA's 'Repair, Reform, and Thrive' plan. This plan aims to address ineffective regulations impacting communities while enhancing locally based banking's potential and supporting the future growth of community banking.
"We look forward to working with Rep. Barr, Sen. Hyde-Smith, and other policymakers to advance this critical legislation," Rainey concluded.
The ICBA is dedicated to fostering an environment where community banks can thrive through advocacy, education, and innovation. Community banks play a vital role in channeling deposits into their neighborhoods, creating jobs, promoting economic prosperity, and supporting customers' financial aspirations.