J. Michael Radcliffe—chairman and CEO of Community Financial Services Bank in Benton, Ky.—testified before the House Financial Services Committee’s Subcommittee on Financial Institutions hearing on regulatory overreach.
Details: In his testimony, Radcliffe outlined the consequences of excessive regulation, noting:
Rising compliance costs make it difficult for community banks to compete with larger institutions that benefit from economies of scale.
Many community banks are forced to merge or be acquired, reducing financial diversity.
As consolidation occurs, rural and underserved areas lose access to the personalized financial services that only community banks can provide.
Congressional Support: Several members of Congress supported community banks in remarks during the hearing, including:
Financial Institutions Subcommittee Chairman Andy Barr (R-Ky.), who said "community banks are the lifeblood of local economies” and "the 'one-size-fits-all' approach to regulation created by Dodd-Frank ignores the unique business models and size of these local institutions.”
House Financial Services Committee Chairman French Hill (R-Ark), who noted that for 15 years, Dodd-Frank has hollowed out the banking sector, especially hurting small and mid-sized institutions that serve as the backbone of local economies.
Trigger Leads Discussion: During the hearing, Rep. John Rose (R-Tenn.) touched on the need to advance the ICBA-supported H.R. 2808, the Homebuyers Privacy Protection Act, to provide long-overdue relief to consumers from mortgage trigger lead solicitations. Reps. Bill Foster (D-Ill.), William Timmons (R-S.C.), and Joyce Beatty (D-Ohio) also voiced their support for the bill.
Grassroots Campaign: ICBA is encouraging community bankers to use its Be Heard Grassroots Action Center to urge their members of Congress to co-sponsor the Homebuyers Privacy Protection Act.
