Member Corner

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In a new report, the Dallas Federal Reserve acknowledged what we all know to be true: community banks are being crushed by the Dodd-Frank Act.

The report specifically warned of the consequences of the regulatory burden on small banks saying:

“…more than five years after [Dodd-Frank]… smaller community banks are finding it increasingly tough to survive...”

“Smaller community banks appear to have a valid concern that their compliance burden is rising and the playing field is becoming more uneven.”

The report went on to say:

“Regulatory oversight should match the level of risk an institution poses to the financial system and economy at large. Otherwise, more banks may become too small to succeed.”  

Translation? One-size-fits-all regulations do not work. And what’s worse is that it’s hurting community banks and credit unions and the hardworking Americans on Main Street who rely on them.

The report also cited the dwindling number of community banks—detailing the fact that since 2008, no new community banks have entered the marketplace. Supporters of Dodd-Frank said they were taking on the big banks.  Instead, with Dodd-Frank the big banks are getting bigger and the small banks are becoming fewer. 

The Financial Services Committee is working to change this.  In 2015, 28 of our Committee bills were signed into law, including 6 dealing with Dodd-Frank.  In 2016, we’ll be working to present visionary proposals laying out a better vision for financial reform – bold ideas that promote more opportunities for low and moderate-income Americans, protect taxpayers from future Wall Street bailouts, and empower families and individuals to achieve financial independence. 

You can join our efforts and track our progress by signing up for regular updates here.