As President Donald Trump considers nominees to lead the federal banking agencies under his new administration, policymakers have a unique chance to secure representation for community banks, ICBA President and CEO Rebeca Romero Rainey wrote in a new op-ed.
New Op-ed: In the op-ed on LinkedIn, Romero Rainey wrote that the lack of community bank representation at federal regulators amounts to a structural deficiency within the federal government, allowing for regulatory agencies that fail to understand the business model of locally based lenders.
Fed’s Michelle Bowman: Romero Rainey cited Fed Governor Michelle Bowman as a rare example of a regulatory official with community banking experience. “Bowman has noted that regulations tailored to the size, business model, risk profile, and complexity of regulated institutions ensure limited supervisory resources are allocated effectively and are dedicated to the most critical risks over time, avoiding unnecessary costs on the banking system,” Romero Rainey said.
Advocacy Outlook: Addressing the lack of official community bank representation at federal agencies is a key element of ICBA’s “Repair, Reform, and Thrive” plan for the new Congress and Trump administration.