In an address during ABA’s Emerging Leaders Forum today, Rep. Trey Hollingsworth (R-Ind.) made a plea for tailored regulation that would allow banks of all sizes and models to compete on a level playing field. “We’ve got to fix the regulatory environment to better tailor regulations for large institutions and small institutions,” he said, pointing to the widespread loss of small banks over the past ten years and the need for faster innovation. He added that the current regulatory regime has resulted in very similar balance sheets across the industry, and that a diversity of business models would enhance the safety and soundness of the sector.
Hollingsworth also stressed the importance of bankers sharing their stories with lawmakers in order to dispel the myth of “banks versus customers.” He said, “Make sure when you walk out of the room, legislators know you can’t have capitalism without capital.”