The U.S. banking system remains the deepest and most resilient in the world, and the diversity of banks serving communities across the country continues to be a source of strength for the nation’s economy, the American Bankers Association and 51 state bankers associations said last week in a letter to congressional leaders. The groups noted that while the recent failures of Silicon Valley Bank and Signature Bank need to be examined carefully, neither reflect the health and vitality of the overall sector.
“The nation’s 4,700 banks, including community banks, midsize banks, regional banks, and large, globally active banks, compete every day for Americans’ business,” the associations said. “While banks may have different business models and strengths, institutions succeed when they meet the needs of the communities they serve.”
The associations urged policymakers and regulators to retain America’s competitive advantage by ensuring that banks of all sizes with diverse business models are allowed to compete and succeed in serving the needs of their communities. This can be done by tailoring regulatory rules and supervision to a bank’s risk profile, they said.
“Americans know that there is no safer place for their hard-earned cash than in a bank, especially one they have come to trust over time,” the associations said. “To reinforce that trust and confidence, we respectfully ask that you foster a business environment that allows all segments of the banking sector to compete and thrive.”