Washington, D.C. (April 28, 2023) — Independent Community Bankers of America (ICBA) President and CEO Rebeca Romero Rainey issued the following statement on today’s Federal Reserve report on the failure of Silicon Valley Bank.
“ICBA appreciates Federal Reserve Vice Chair Michael Barr’s thorough and candid review of the failure of Silicon Valley Bank. However, the Federal Reserve’s admission that its supervisors failed to take forceful enough action against the 16th largest bank in the country when substantial problems were known confirms that large banks continue to enjoy preferential treatment as well as lax examination oversight and enforcement.
"As policymakers evaluate lessons learned, it is imperative that future laws and regulations address large bank risk and supervision. Community banks have served their customers for decades, withstood economic cycles, and are rigorously examined — they don’t need the kinds of government bailouts that reward mismanagement and risky behavior at larger institutions, and they don’t need additional regulation and oversight.
“Policymakers must distinguish large banks from community banks, which do not pose systemic risk nor outsized risk to the Deposit Insurance Fund. ICBA looks forward to continuing to educate the public about the strength of community banks’ relationship-based model and the reasons why policymakers should remain focused on improving large bank oversight.”
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 $5.8 trillion in assets, $4.8 trillion in deposits, and $3.8 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.