FOR IMMEDIATE RELEASE
ICBA Supports Fed Governor’s Call to Continue Case Against “One-Size-Fits-All” Regulation
Fed’s Duke Says Regulations Disproportionately Impact Community Banks
Washington, D.C. (Feb. 5, 2013)—The Independent Community Bankers of America® (ICBA) today said it supports comments from Federal Reserve Governor Elizabeth Duke encouraging community banks to continue making the case against “one-size-fits-all” banking regulation. Duke said today that community banks should continue to identify the regulatory requirements that are the most onerous to community banks and continue to suggest alternatives to achieve those regulatory objectives in a less intrusive way.
“ICBA strongly supports a tiered approach to financial regulation that distinguishes between common-sense community banks on Main Street and systemically risky financial firms on Wall Street,” ICBA President and CEO Camden R. Fine said. “We are encouraged by Governor Duke’s words of support for smart regulations that do not overburden community banks and prevent them from continuing to serve their customers and communities.”
In remarks at the University of Georgia’s Terry College of Business, Duke cited community bank concerns that new regulations will inhibit their ability to lend in their communities. She said that Federal Reserve research over the years has confirmed that the burden of regulations falls disproportionately on community banks.
However, Duke said that she can’t remember a time when more regulatory proposals differentiate between banks based on size or complexity. She noted, for instance, that the Federal Reserve Board’s subcommittee on community banking reviews regulatory proposals and makes recommendations about matters related to community bank supervision and regulation. Further, she said the community banking industry’s future is bright and that the advantages of community banking, such as deep community ties and customer relationships, have not diminished.
ICBA this week called on policymakers to carve out community banks from new regulations and to expand on the tiered financial regulatory approach, citing the volume and cost of new regulations. The association noted that 900 new rules and proposed rules affecting the banking industry have been entered into the Federal Register since 2007 and that new rules are expected to drive up lending rates, reduce employment and cut the gross domestic product.
For more information about community banks and the regulatory burdens they face, visit www.icba.org.
The Independent Community Bankers of America®, the nation’s voice for nearly 7,000 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 www.icba.org.