Washington, D.C (Oct. 23, 2017)—Independent Community Bankers of America® (ICBA) President and CEO Camden R. Fine released the following statement on today’s speech from FDIC Chairman Martin Gruenberg on the importance of community banks.
“ICBA strongly agrees with Chairman Gruenberg that community banks are vital to the U.S. financial system and economy because of their emphasis on small-business and farm lending and on serving markets neglected by larger institutions. ICBA also shares Chairman Gruenberg’s concern with the lack of de novo formation, consolidation in the banking industry and the cost of regulatory compliance on community banks—issues that are closely related.
“As the Federal Reserve and Conference of State Bank Supervisors recently reported in a new survey, community bank compliance costs have increased by nearly $1 billion in the past two years to $5.4 billion, or 24 percent of community bank net income. Of the survey respondents who said they considered an acquisition offer in the past year, virtually all (96.7 percent) said regulatory costs were a very important, important or moderately important reason—showing a direct impact of regulatory burden on community bank consolidation.
“ICBA will continue working with regulators, Congress and the administration to address the harmful impact of excessive regulatory burdens on community banks and the customers and communities they serve.”
The Independent Community Bankers of America®, the nation’s voice for more than 5,700 community banks of all sizes and charter types, is dedicated exclusively to representing the interests of the community banking industry and its membership through effective advocacy, best-in-class education and high-quality products and services. For more information, visit ICBA’s website at www.icba.org.