“The banking industry is at war.”
This declaration in a recent opinion piece featured in American Banker captures the immediacy of the moment for banks of all sizes, but especially community banks. The piece, written by Kenneth Thomas, President of Community Development Fund Advisors, cites recent revisions to rules implementing the Community Reinvestment Act, proposals to increase bank capital requirements and pending bank liquidity rules as examples of the all-out attack by regulators on the banking system.
Not mentioned by Thomas are the issues which, arguably, will affect community bankers and their customers more directly – and sooner.
- Rules implementing Section 1071 will create hurdles for your small business borrowers like you’ve never seen.
- Section 1033 rules will require banks to pay for competitors’ access to your customers’ data.
- We need a level playing field parity with tax subsidized lenders like credit unions and the farm credit system.
“What we see in Washington, D.C. is a concerted effort to create a new banking system in a new image – far removed from the dispersed, focused and localized industry that has powered our economy for the last 150 years,” said IBAT President and CEO Christopher Williston.
Why this dire warning? We start off this morning’s newsletter with a wakeup call for all and a reminder that we need to fight for the industry that we want or take the industry that we are given.
Make plans to join IBAT in the fight by signing up to stand shoulder-to-shoulder with other community bankers at the 30th Annual Congressional Visit in Washington on February 6-8.