Letter to Tim Johnson, Chairman, and Mike Crapo, Ranking Member, of the Senate Banking, Housing, and Urban Affairs Committee - Provide Regulatory Relief for Community Banks

Letter

Dear Chairman Johnson and Ranking Member Crapo,

As the U.S. Senate Banking, Housing, and Urban Development Committee prepares to hold a hearing in September, we wish to express our support for the need to provide significant regulatory relief to America's community banks.

In the aftermath of the financial crisis, we agree it is very important to determine the state of community banking in the United States. As you know, these financial institutions are vital to our communities: they provide access to credit for small businesses, work with borrowers who have special housing needs with properties that don't fit conventional financing, and bolster local economies. As a result of increasing regulatory burdens, mergers and consolidations have increased; new charter activity has come to a virtual standstill; and community banks' share of total industry assets has declined. We believe this heightened regulatory environment impedes banks' ability to be strong sources of credit to their customers, especially in rural and underserved areas.

Stories of frustration from our local bankers -- countless examples of burgeoning compliance staffs, onerous examinations, and the loss of valuable resources as the burden of managing regulatory responsibilities continues to increase -- must be taken seriously. Without immediate relief for community banks to reduce the current regulatory burden, unhealthy consolidation of the banking industry in the United States may occur at a rapid rate.

We thank you for holding this hearing and urge you to markup legislation to identify and reduce the regulatory policies that restrain community bank lending and local economic growth.

Sincerely,

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