ICBA's Letter to the 119th Congress

Introduction

On behalf of ICBA and community banks with more than 50,000 branches across the country, I write to congratulate you on being sworn in as a Member of the 119th Congress!

Community bankers are enthusiastic at the opportunity presented by the new Congress and the incoming Administration to transform the regulatory environment for financial services and community banks and unlock our nation’s potential for rapid economic growth in all rural, suburban, and urban markets.

We look forward to meeting all newly elected Members in the coming weeks to discuss the unique and extraordinary value community banks bring to local economies and how it can be amplified to greater potential. A thriving community banking industry is critical to creating prosperity and realizing our economic promise as a nation.

A unique feature of the American economy, community banks have deep roots in the communities they serve, often for many generations. Community banks provide customized financial products and services and reinvest deposits back into local credit. They are, according to the FDIC, the only physical banking presence in one in three U.S. counties.

Community banks are responsible for the majority of Main Street small business loans and 70 percent of bank agricultural loans. ICBA advocates for policies that promote a vibrant community banking sector to support the prosperity of local communities.

Transforming Regulation for Growth: The Community Bank Legislative Agenda

A framework of streamlined regulation and low taxation for community banks and their customers will drive economic growth and job creation. In the 119th Congress, we seek to repeal counterproductive and destructive regulations to foster and strengthen community banks and their customers as engines of local growth.

With input from community bankers nationwide, ICBA has created a set of policy priorities for the 119th Congress that fall into four categories.

Fixing Destructive Regulatory Burden

Inefficient and prescriptive regulations continue to encumber community bank lending, drive industry consolidation, and inhibit local economic growth. ICBA’s recommendations include updating regulatory thresholds to appropriately tier regulation for systemic and consumer risk and a community bank exemption from intrusive and costly small business loan data collection requirements.

Ensuring a Competitive Financial Landscape Community

Banks embrace innovation that enables them to reach more consumers and expand products and services to small businesses. To continue their important role in local economies, community banks must not be put at a regulatory disadvantage though regulation, guidance, and supervisory expectations that do not apply to entities engaged in the same activities.

Only a balanced, competitive landscape will promote true innovation. ICBA’s recommendations include permanent tax relief for all Americans, closure of the industrial loan company (ILC) loophole that threatens to undermine safety and soundness, and opposition to credit card routing mandates that would be costly to consumers.

Revitalizing Rural America America’s

Farmers and ranchers are critical to creating rural prosperity, food independence, and a stronger nation. ICBA’s recommendations include passage of a Farm Bill with a robust safety net, the Access to Credit for Rural Economies (ACRE) Act to provide interest rate relief for farmers, ranchers, and rural homeowners, and oversight of the Farm Credit System, which leverages its unfair advantages to crowd out community banks.

Strengthening Financial Consumers

Policy changes are needed to protect and strengthen American consumers. ICBA’s recommendations include measures to eliminate check fraud and to better secure consumer data and privacy.

ICBA believes that these policy recommendations will play a critical role in creating a robust economy and a more competitive financial landscape to better serve small businesses and consumers. We look forward to meeting with you soon to discuss these recommendations in more detail.

Thank you for your consideration.