FOR IMMEDIATE RELEASE
ICBA Praises Rep. Hensarling's Efforts to Reduce Bank Regulatory Burden
Washington, D.C. (July 28, 2005) - The Independent Community Bankers of America (ICBA) commended Rep. Jeb Hensarling (R-TX) for introducing legislation to reduce the regulatory burden on community banks.
"ICBA has long held that congressional action is needed for comprehensive regulatory relief," said Camden R. Fine, ICBA president and CEO, "We are pleased Rep.Hensarling recognized the critical role local banks play in their communities and the need to reduce the excessive compliance burden on them. This legislation that will move us closer to that goal."
"Community banks are the backbone of the economic stability of the towns and cities across America," said David Hayes, ICBA chairman and president/CEO of Security Bank, Dyersburg, TN. "Today, they carry a disproportionate share of the regulatory burden, diminishing their ability to serve their communities. We look forward to working with Chairman Oxley, Rep. Hensarling and the Financial Services committee to bring true regulatory reform to our nation's community banks."
ICBA has been working to gain support for the Communities First Act (H.R. 2061) which was introduced by Rep. Jim Ryun (R-KS) in May. H.R. 2061 provides targeted regulatory burden relief and tax credits for banks with up to $5 billion in assets, thus enabling community banks to remain competitive in their local markets against lightly regulated nonbank financial institutions and huge tax-exempt credit unions and farm credit associations.
Rep. Hensarling's bill, the Financial Services Regulatory Relief Act of 2005, includes a number of provisions that are also in the Communities First Act, including extended examination intervals for banks with less than $1 billion in assets, Call Report streamlining, and elimination of redundant privacy notices.
For more information on the Communities First Act, visit www.icba.org.