Treasury Secretary Scott Bessent touted regulatory relief for community banks during a hearing on Capitol Hill.
Statement: While delivering the Financial Stability Oversight Council’s annual report to the House Financial Services Committee, Bessent said, “Going forward, regulation and supervision should address material risks, enhance transparency, and reduce unnecessary burdens—particularly for community banks."
Pro-Community Bank Legislation: In his opening remarks, Committee Chairman French Hill (R-Ark.) said his recently introduced Main Street Capital Access Act (H.R. 6955) “is designed to revitalize local bank formation and right-size regulations that are intended for far larger and more complex institutions, ensuring that community lenders can focus on serving families, small businesses, and local economies.”
Bill Details: H.R. 6955 includes ICBA-supported provisions to tailor regulations to the lower risk profile of community banks, ease excessive capital requirements, support the formation of new community banks, ensure fair reviews of agency examinations, raise thresholds for holding custodial and reciprocal deposits, and more.
ICBA Support: ICBA President and CEO Rebeca Romero Rainey last month joined a fireside chat at the U.S. Capitol in support of the pro-community bank legislative package. Romero Rainey cited the importance of these provisions to advancing tiered and proportionate regulations that will unleash the full power of community banks.
Today: Bessent is scheduled to return to Capitol Hill today to testify before the Senate Banking Committee.