Community banks are an important part of the U.S. financial system and play a crucial role in both local communities and the national economy, American Bankers Association Vice Chair Cathy Owen told members of the House Financial Services Committee today.
Owen, who is chair, president and CEO of State Holding Company and executive chair of Eagle Bank and Trust Company in Little Rock, Arkansas, testified on behalf of ABA and the Arkansas Bankers Association at a hearing titled “Making Community Banking Great Again.” She used her opening remarks to stress that “banks of all sizes and business models are drivers of economic growth across our economy,” while highlighting the unique and critically important role that community banks play.
“Community banks help local businesses thrive by providing them with credit, and by becoming trusted advisors that help small businesses make good financial decisions and manage their capital,” Owen said.
Committee Chairman French Hill (R-Ark.) is a former banker who has proposed a package of banking reform policies, “Principles to Make Banking Great Again.” In his opening remarks, Hill said small banks and credit unions have suffered under stifling regulatory requirements, “forcing them to devote more resources to lawyers and check-the-box compliance programs instead of serving their customers.”
“They have continued to serve as critical engines for local economies despite being subjected to much of the same regulatory burden and regime as the largest, most complex institutions,” Hill said.
Owen said ABA strongly supports the goals in Hill’s proposals.
“Despite challenges, we believe that the future of banking is bright, provided the policymakers make thoughtful changes to support growth and close gaps that promote regulatory arbitrage and put the financial system and consumers at risk,” she said.
