FOR IMMEDIATE RELEASE
ICBA Supports Agencies' Regulatory Relief Efforts
Reich's Recommendations a Good Start Toward Reducing Burden
Washington, D.C. (June 9, 2005) - The Independent Community Bankers of America (ICBA) today supported bank regulators' efforts to review the federal banking regulations and reduce the regulatory burden on community banks. In remarks before the House Financial Services Subcommittee on Financial Institutions and Consumer Credit, Federal Deposit Insurance Corporation Vice Chairman John Reich-who is leading the interagency effort-offered a list of twelve legislative recommendations agreed to by federal bank regulators that would offer some regulatory relief. Regulators are continuing their discussions and expect to add items to that list in coming weeks, Reich said.
"The regulators' recommendations are a good start," said Karen Thomas, ICBA executive vice president, Government Relations. "We look forward to the agencies' additional recommendations," Thomas said, "so we can further advance the goal of comprehensive regulatory relief for community banks. Community banks shoulder a disproportionate share of the burden with unnecessary recordkeeping and other regulatory requirements diverting their resources from serving the financial needs of their customers and their communities."
ICBA supports the Communities First Act (H.R. 2061) which was introduced by Rep. Jim Ryun (R-KS) in May and urges the committee to include the bill as part of its deliberations on comprehensive regulatory relief being led by Rep. Jeb Hensarling (R-TX) and Rep. Dennis Moore (D-KS). 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.
For more information on the Communities First Act, visit www.icba.org.