Community Bankers of Iowa News


Date ArticleType
3/18/2016 Press Release
CBI Thanks Iowa's U.S. House Reps for Signing Reg Exemption Letter

WEST DES MOINES, IA – Community Bankers of Iowa (CBI), the ONLY association that exclusively supports and defends community banks and bankers in Iowa, applauds Iowa’s representatives in the U.S. House for signing a bipartisan letter delivered to Consumer Financial Protection Bureau (CFPB) Director Richard Cordray on Monday. Reps. Rod Blum (R-Dist 1), Dave Loebsack (D-Dist 2), David Young (R-Dist 3) and Steve King (R-Dist 4) are included among the 329 members of the House who signed the letter, calling for the CFPB to protect community banks and credit unions from Dodd-Frank regulatory burden.

The CFPB does not have direct supervisory oversight over institutions with less than $10 billion of assets, but its rules apply to all banks and credit unions, regardless of size. Though almost all of Iowa’s community banks fall under that $10 billion asset threshold, under Dodd-Frank the CFPB has the authority to adapt regulations by allowing it to exempt “any class” of financial entity from its rulemaking. The letter, drafted by Reps. Adam Schiff (D-Calif.) and Steve Stivers (R-Ohio), urges the CFPB to “consider the benefits community banks provide to their customers and ensure that regulations do not have the unintended consequences of limiting services or increasing costs for community bank customers."

The letter also praises community banks for their critical part in the economic support of the communities they serve. A recent study released by the Government Accountability Office found that there are a number of cases where financial services have been limited or discontinued by community-based financial institutions due to new regulatory requirements.

Rep. Stivers said, “Community Banks do not pose any systemic risk, yet the CFPB continues to issue rules that disproportionately hurt those community financial institutions. These unnecessary and costly regulatory burdens have limited the ability of families and job creators to get access to needed credit and caused community institutions to become too small to survive."

CBI stands firm in support of efforts to provide regulatory relief for Iowa’s community banks, and continues to advocate for exemptions from Dodd-Frank rules that were intended to curtail the activities of larger banks that led up to the 2008 financial crisis.

“CBI would like to thank Reps. Blum, Loebsack, Young and King and the other members of the House for their overwhelming show of support on this matter,” said Community Bankers of Iowa CEO Don Hole. “Community banks resisted the speculative and dangerous financial activities that nearly brought our economic system to ruin. It is appropriate that Iowa’s community banks are not only recognized for their efforts, but also protected from regulations that bar them from providing the financial services that form a crucial part of the development of Iowa’s urban and rural communities.”

About CBI
Community Bankers of Iowa exclusively promotes and defends the common interests of independently owned and locally controlled Iowa community banks whose services are vital to the preservation of economic diversity and rural America. More than 320 independent community banks are located in Iowa, representing more than 1,000 communities across the state and employing over 5,000 Iowans. CBI members have in excess of $3.2 billion dollars in common sense loans to consumers, small businesses, and the agricultural community.

Community Bankers of Iowa | Des Moines, IA