ABA member Roger Porch, VP at First National Bank in Philip, S.D., testified before the Senate Banking Committee yesterday on challenges facing rural banks. Porch’s testimony emphasized the burden of excessive regulations on small, rural banks like his, a $250 million institution that spends $222,000 on regulatory expenses, not including salaries, amounting to 19 percent of overhead.
“We ask for regulation and oversight that is truly beneficial to rural consumers who rely on local banks for credit,” Porch said. “The focus should be on enforcing existing laws rather than creating new rules and regulations that threaten banks’ future existence. We urge Congress to work together — Senate and House — to pass bipartisan legislation that will enhance the ability of community banks to serve our customers.”