Washington, D.C. (March 16, 2023) — Independent Community Bankers of America (ICBA) President and CEO Rebeca Romero Rainey issued the following statement on today’s testimony from Treasury Secretary Janet Yellen that uninsured deposits will be protected only at depository institutions that pose systemic risks to the financial system.
“ICBA and the nation’s community banks denounce today’s statements from Treasury Secretary Janet Yellen that uninsured deposits will be protected only at systemically risky banks, which is a bailout for big banks that rewards mismanagement and risky behavior to the detriment of community banks and the communities they serve. Secretary Yellen’s statements that only the largest and riskiest institutions will be bailed out by regulators underscore what ICBA has long said: unlike too-big-to-fail institutions, community banks don’t need government bailouts because they operate under a safe, sound, and relationship-based banking model that has withstood economic cycles.
“Depositors’ funds remain secure in community banks because these institutions are vested in their communities, promoting financial stability and prosperity on Main Street. As small businesses themselves, local community banks take pride in serving the unique needs of their customers and communities.
“ICBA and community bankers will work with policymakers to advance legislative and regulatory solutions to ensure Washington’s response to recent closures does not affect the community banks that continue to do right by their customers, does not reward risky behavior at large financial institutions, and ensures the long-term viability of a strong dual banking system.”
The Independent Community Bankers of America® creates and promotes an environment where community banks flourish. ICBA 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.
With nearly 50,000 locations nationwide, community banks employ nearly 700,000 Americans and are the only physical banking presence in one in three U.S. counties. Holding more than $5.8 trillion in assets, over $4.8 trillion in deposits, and more than $3.5 trillion in loans to consumers, small businesses and the agricultural community, community banks channel local deposits into the Main Streets and neighborhoods they serve, spurring job creation, fostering innovation and fueling their customers’ dreams in communities throughout America. For more information, visit ICBA’s website at www.icba.org.