Community banks, like most small businesses, are facing significant challenges on multiple fronts. The Independent Bankers Association of Texas (IBAT) applauds the commitment and resilience of these small banks in supporting their communities and customers. Their exemplary performance during the pandemic reinforced the value and critical importance of this small sector of the banking industry on so many levels. 

The business models of community banks and the global financial giants could not be more divergent. While there is more regulatory scrutiny on the systemically important entities, all banks—regardless of risk profile or business activities—must adhere to basically the same set of rules and regulatory expectations. IBAT has long pushed for a recognition of the unique business model of community banks and the positive contributions these institutions make in meeting the needs of small business borrowers, working with low- to moderate income customers, contributing to their communities and creating jobs and economic activity. We encourage Congress to focus on business activities and risk profiles when determining appropriate regulatory treatment of various categories of banks.