Meeting with community bankers Thursday, President Trump reaffirmed his commitment to tailoring regulations to consider the size of financial institutions.
“President Trump promised to work to tailor the nation’s regulatory framework so that it accounts for the unique challenges faced by community banks,” the Trump Administration said, in a statement following the meeting with members of the Independent Community Bankers of America and the American Bankers Association.
White House Press Secretary Sean Spicer expanded on that statement, telling reporters that since 2008, the number of community banks has decreased 30%.
“The dramatic increase in regulation following the financial crisis has been a major driving force in the decline of these banks. Dodd-Frank alone has resulted in 22,000 pages of new regulations,” Spicer said.
He added that large financial institutions can hire “armies of compliance officers” to ensure that banks follow regulations.
Smaller community banks cannot do that, Spicer said.
“By reforming the regulatory system so that it is efficient, effective, and appropriately tailored, we will stop treating these critical institutions in our communities the same as banks that have exponentially more in assets, enabling them to engage even more with small businesses and entrepreneurs that stimulate local economies,” he said.
Credit union trade groups, like community banks, have lobbyied for a revised regulatory regime that would take into account the size of a financial institution before requiring compliance.
NAFCU would like to meet with Trump, said Carrie Hunt, the organization’s vice president of government affairs and general counsel.
“We have reached out to the administration and have met with staff, and our members would appreciate meeting with the president to discuss credit union issues,” Hunt said.
Asked whether credit unions have sought a meeting with Trump, CUNA Chief Advocacy Officer Ryan Donovan said that the organization always is seeking ways to advance its agenda.
“We have had a number of conversations at various levels of the administration and we are confident that they fully understand our concerns and our priorities,” he added.
