Right-Sizing Regulations for the Modern Era

Adrenaline featured in Bank Director article about bipartisan support for community banking regulatory relief

In the January/February edition of ICBA’s Bank Director newsletter, Adrenaline’s Sean Keathley authored an op-ed about the Senate Banking Committee introducing bipartisan legislation that would revise Dodd-Frank regulations to “promote economic growth, provide tailored regulatory relief, and enhance consumer protections.” This bill achieved what few in Washington are able to – uniting both sides of the political aisle toward a common goal. The legislation, co-sponsored by nine Republicans and eight Democrats, helps to address some of the unintended consequences of the Dodd-Frank regulations and work toward meaningful change to support community and regional banks.

In the article, Sean says, “This legislation addresses regulatory adherence that community banks have been grappling with for nearly a decade. The post-crisis regulations in Dodd-Frank were designed for the biggest banks to prevent a ‘too big to fail’ scenario. What that meant for community banks is that they had the same rules applied to them as the corporate behemoths, resulting in community banks having to use inordinate resources to keep up. In short, the economies-of-scale were tilted against the community banks.” By balancing these scales, community banks could do what they do best: reinvest resources back into their local communities.

In the intervening months since the Senate Banking committee advanced the bill, the House has gotten onboard and has passed two bipartisan bills aimed at reducing regulatory burdens in lending. ICBA has also taken to the airwaves to support the Senate legislation by running radio ads to support the Economic Growth, Regulatory Relief and Consumer Protection Act (S. 2155). The campaign hopes to urge key senate votes. According to Sean, “In our current political climate, it’s exceedingly rare for any issue to truly energize and engage both sides of the aisle. But community banking regulatory relief may just be that needle in the haystack, bringing a welcome spirit of bipartisanship back to Washington.”

To subscribe to Bank Director, contact ICBA at info@icba.org. For more insights on community banking and enhancing consumer experiences, contact us at info@adrenalinex.com.

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