ICBA Opposes Congressional Pressure for Postal Banking

May 21, 2019
ICBA told the House that it has serious concerns with congressional efforts to pressure the U.S. Postal Services to offer traditional banking services. In a letter to House members, ICBA noted that postal banking is an ill-advised idea fraught with unintended consequences.

ICBA noted USPS’s serious fiscal problems and said the postal service should focus on restoring its own viability rather than entering a complex industry that would put taxpayers at risk. ICBA also cited the risk of safeguarding consumer financial data and its potential for inserting a government-sponsored competitive threat into the banking marketplace.

“In trying to address one problem, let’s not create another,” ICBA President and CEO Rebeca Romero Rainey wrote. “Instead, Congress should pursue policies to strengthen community banks and encourage de novo banks.”

ICBA has consistently opposed postal banking and last year called on a Treasury Department task force on the postal system to recommend prohibiting an expansion of banking services at USPS. The task force did exactly that in a report last December, noting that USPS has narrow expertise and capital limitations and should not take on added balance sheet risks.