May 11, 2023
Washington, D.C. (May 11, 2023) — Independent Community Bankers of America (ICBA) President and CEO Rebeca Romero Rainey issued the following statement on today’s Federal Deposit Insurance Corporation proposed rule on special assessments for the resolutions of Silicon Valley Bank and Signature Bank of New York.
“ICBA and the nation’s community banks commend the FDIC for today’s proposal to exempt the vast majority of community banks from its special assessment following the recent failures of Silicon Valley Bank and Signature Bank of New York—which we’ve advocated since the immediate aftermath of these large bank failures. The FDIC’s proposal to fully exempt community banks under $5 billion in assets and to tie assessments to applicable financial institutions’ estimated uninsured deposits recognizes the importance of distinguishing large banks that pose systemic risk to the financial system from the thousands of local community banks that serve consumers and small businesses.
“As ICBA has repeatedly said, including in a letter to FDIC Chairman Martin Gruenberg, community banks should not have to bear any financial responsibility for losses to the Deposit Insurance Fund caused by the miscalculations and speculative practices of large financial institutions. Large banks should pay for the special assessment because they are the chief beneficiaries of these two receiverships.
“ICBA will continue working with policymakers to ensure Washington’s response to these failures does not affect the community banks that continue to appropriately manage risk and do right by their customers and communities.”
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.