WASHINGTON–With “megabanks” under the congressional microscope, America’s community banks used the opportunity to stress the role they play during a hearing at which credit unions also testified.
Independent Community Bankers of America (ICBA) President and CEO Rebeca Romero Rainey told the House Financial Services Committee that as Congress reviews the state of the nation’s largest and riskiest banks a decade after the “Wall Street financial crisis they caused,” community banks play a positive role in their local communities.
“Community banks comprise 99% of U.S. bank charters and make 60% of the nation’s small-business loans and 80% of agricultural loans,” Romero said.
“And these locally based institutions continue to find new ways to spread economic prosperity throughout their communities, adding more than 700 bank offices between June 2017 and June 2018 while larger institutions shrank their office footprint. Through it all, community banks operate within the strenuous regulatory requirements and economic fallout often provoked by the misbehavior of the megabanks.”
‘Only Physical Banking Presence’
Romero highlighted what the ICBA said are bipartisan economic principles to expand access to financial services in its policy platform, Community Focus 2020: The Community Bank Agenda for Expanding Economic Opportunity.
“As the only physical banking presence for one in five U.S. counties, community banks continue to serve a vital and unmatched role in meeting the needs of local customers and communities nationwide,” said Romero. “With more than 52,000 locations and a presence in every congressional district, community banks reflect America’s diversity and offer a source of common ground for Republicans and Democrats.
“ICBA and the nation’s community banks look forward to continuing to work with policymakers on common-sense reforms that will help these local institutions promote greater access to financial services and economic opportunity throughout every corner of the country.”