On May 19, President Trump issued two executive orders, each bearing significant implications for the present and future of Texas community banking. The first, Restoring Integrity to America’s Financial System, addresses abuses of the American banking system by those engaged in illicit activities — including “terrorist financing, narcotics trafficking and human trafficking.”
The second Executive Order, Integrating Financial Technology Innovation into Regulatory Frameworks, aims to throw open the doors of competition for non-banks, calling upon the Federal Government to remove “overly burdensome and fragmented regulation and supervisory practices that form barriers to entry and primarily benefit incumbent financial services firms.”
Each Executive Order will require a response from the appropriate regulatory agencies, and IBAT will take all measures available to actively engage in the rulemaking process.
To help Texas community banks understand what their potential impact could mean for their bank, IBAT’s Compliance Pathways has released a Summary of Executive Orders. The memo breaks down the executive orders in plain language, highlights key strategic implications and their potential impact on the industry.
