FDIC Acting Chairman Travis Hill said deposit insurance reform could strengthen depositor confidence.
Details: During a Senate Banking Committee hearing to consider his nomination for FDIC chairman, Hill said:
Reforms like the Main Street Depositor Protection Act (S.2999) could strengthen confidence in community banks while managing systemic risk.
His goal is a more modern, risk-based approach to examinations that improves fraud detection while maintaining robust capital standards.
The cumulative impact of regulations highlights the need to assess how overlapping regulations affect community banks’ competitiveness and operations.
Outlook: President Donald Trump earlier this month nominated Hill to be FDIC chairman. Hill has served as acting chairman since January and was previously sworn in as vice chairman in January 2023. If Hill’s nomination is advanced by the committee, a full Senate vote would follow.
ICBA Support:
ICBA this week encouraged senators to advance Hill’s nomination, citing his distinguished career and understanding of the importance of community banks in supporting local communities.
In a national news release earlier this month, Romero Rainey congratulated Hill on his nomination and encouraged swift confirmation by the Senate.
More on Deposit Insurance Reform:
With lawmakers deliberating deposit insurance reform proposals, ICBA last week released recommended principles to inform the debate.
In a Main Street Matters blog post, ICBA President and CEO Rebeca Romero Rainey said the large bank failures of 2023 demonstrated the clear need to reform the nation’s deposit insurance system, and recently introduced bipartisan legislation has provided a good starting point for these discussions.
ICBA expressed support for S. 2999, introduced by Sens. Bill Hagerty (R-Tenn.) and Angela Alsobrooks (D-Md.), saying the bill is a great step to promote balanced deposit insurance coverage across the banking industry, strengthen the deposit insurance system, and support small businesses that use transaction accounts for payroll and other recurring expenses.
ICBA last month called on Congress to consider deposit insurance reforms in a statement for the record for the Senate Banking Committee hearing on deposit insurance reform.