The House Financial Services Committee held its first hearing of the 119th Congress, focusing on community banking policy. The Independent Community Bankers of America (ICBA) addressed the panel, emphasizing the potential for regulatory transformation to foster economic growth at a local level.
Rebeca Romero Rainey, President and CEO of ICBA, testified as the sole representative of national community banks. She presented ICBA's proposals aimed at ensuring a prosperous future for these institutions across the country. Romero Rainey expressed gratitude to Chairman French Hill for his efforts in establishing banking principles that will guide policymaking and regulatory oversight during this congressional session.
Romero Rainey stated, "The new Congress and administration present an opportunity to transform the regulatory environment to support community banking and economic growth in rural, suburban, and urban markets." She highlighted ICBA's eagerness to collaborate with the Financial Services Committee to enhance the role of community banks in local economies.
Community banks play a significant role by reinvesting local deposits into credit for their communities. With over 1,000 such banks operating for more than a century, they are key players in small-business and agricultural lending. Romero Rainey underscored their importance alongside responsible innovation within the industry.
To promote sustained growth through policy reform, Romero Rainey urged Congress to advance tiered regulations by updating regulatory thresholds comprehensively. She also called for relief from specific Consumer Financial Protection Bureau requirements via legislation like Roger Williams’ 1071 Repeal to Protect Small Business Lending Act.
Additionally, she advocated for promoting new bank formations through Andy Barr’s Promoting New Bank Formation Act (H.R. 478), strengthening community development financial institutions and minority depository institutions, ensuring equivalent supervision among financial service providers including credit unions and Farm Credit System lenders.
Further recommendations included ending mortgage “trigger leads” harassment, closing industrial loan company loopholes, assisting community banks in eliminating check fraud while opposing credit card routing mandates. Protecting consumer data from CFPB’s rules was also emphasized.
ICBA has made its complete testimony available online. The organization sees this period under the Trump administration and 119th Congress as an opportunity to significantly improve federal financial services policy through its "Repair, Reform, and Thrive" plan outlined in an open letter addressing national policy challenges.
ICBA remains committed to fostering an environment where community banks can thrive by leveraging advocacy, education, and innovation efforts that channel deposits into neighborhoods served by these trusted credit sources—creating jobs while fueling economic prosperity locally.