Too Big to Fail & Systemic Risk (Including Systemic Risk)

The Wall Street financial crisis and government intervention of 2008 affirmed that the nation’s largest megabanks are “too big to fail”—so big and interconnected that the government will not allow them to fail.

As ICBA details in its “End Too-Big-To-Fail” study, too-big-to-fail distorts free markets, incentivizes risky behavior, leaves taxpayers on the hook, and creates unfair competitive advantages for the largest banks. Meanwhile, community banks face oppressive regulatory burdens as a direct result of megabank misdeeds.

A less concentrated and more diverse financial system would decrease systemic risk, improve competition and innovation, and increase the availability of consumer credit. ICBA and the nation’s community banks are dedicated to ending too-big-to-fail.

Articles & Press Releases

Op-Ed: Community Banks Standing Up for Rural America

Jul 22, 2019
rebeca_romero_rainey-2018_150pxWall Street financial institutions are once again showing that when the going gets tough, they head for the exits, ICBA President and CEO Rebeca Romero Rainey wrote in a new op-ed on Medium.

In the op-ed, Romero Rainey cited a recent Reuters report that found agricultural lending by the nation's largest banks is down significantly in recent years while overall bank lending to the farm sector has grown.

"Fortunately for rural America and the citizens who call it home, the nation’s community banks are bolstering their farm lending at this crucial time — demonstrating once again why policymakers should work to strengthen community banks, which stick with their customers and communities in good times and bad," she wrote.

Read the Op-Ed


Letters to Congress

Title Recipient Date
Senators Crapo and Brown
09/12/2017

Letters to Regulators

Title Recipient Date
Federal Reserve, OCC
06/12/2018
Federal Reserve, OCC
05/08/2018
Federal Reserve Bank of Minneapolis
01/17/2017
OCC, Federal Reserve, and FDIC
08/03/2016

Testimonies

Title Committee Presenter Date

Summaries

Title Content Type Date