Strengthened Participatory Governance and Rulemaking. Replacing single-director governance with a five-member commission would allow for diverse views and expertise on issues before the CFPB and build in a system of checks and balances. A commission would promote measured and non-partisan agency decision making which would result in balanced and effective consumer protection.
Community Bank Exemptions. The Dodd-Frank Act allows the CFPB to exempt smaller financial institutions – including community banks – from its rules but it has been reticent to use this authority. Consequently, community banks which did not cause the problems the CFPB seeks to address are too often forced to comply with rules intended to target bad behavior by larger financial services providers.
Clearer statutory direction would help alleviate this burden. Arbitrary requirements that do not take into account the relationship-based community banking model reduce consumer choice and end up hurting the very consumers they are meant to protect.
Better Risk Targeting of Exam Resources. Raising the exemption level for CFPB examination and enforcement from $10 billion in assets to $50 billion would enhance consumer protection by allowing the CFPB to concentrate on the greatest threat to consumers: megabanks and non-bank financial services providers. Banks of less than $50 billion in assets would continue to be examined for compliance with CFPB rules by their prudential regulators.
Direct grassroots advocacy is essential to promoting federal policies that support community banking – and ultimately impact your role at the bank. Our Be Heard grassroots action center offers a variety of tools to help you amplify your voice with targeted outreach to federal policymakers.
Just like everything else, lobbying is a skill. This toolkit makes it easy to learn the best way to communicate with and engage policymakers in this virtual environment. No matter what role you have at the bank, YOU can support community banks and make an impact.
Every year, community bankers are invited to attend the complementary ICBA Capital Summit and this year is easier than ever to participate. The event is fully virtual, April 27 at 11am-1pm Eastern Time, so mark your calendars!