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ICBA comments on Dodd-Frank: One year later

As the Dodd-Frank Wall Street Reform and Consumer Protection Act approaches its one year mark, the Independent Community Bankers of America (ICBA) is working on behalf of the nation’s more than 7,000 Main Street community banks to minimize negative regulatory effects and is advocating for legislation that will ensure the stability and vitality of community banks for generations to come.

During a conference call with media, ICBA President and CEO Camden R. Fine said that while Dodd-Frank created an important precedent distinguishing Main Street community banks from the Wall Street megabanks, ICBA is working diligently to ensure that regulations coming out of the law don’t stunt community banks’ growth or ability to serve their local markets—many of which are small towns and rural areas that would otherwise be underserved if it were not for their local community bank.

“More needs to be done to protect community banks, which reinvest in their communities by employing residents, putting deposits to work locally and investing in the small businesses that drive the local economy,” Fine said. “Community banks are common-sense lenders that take pride in serving the needs of their communities, and they should not be unduly burdened by regulations that were intended to correct the behavior of abusive players, unscrupulous lenders and irresponsible risk managers that took our nation’s economy to the brink.”

While ICBA earned several wins for community banks in the Dodd-Frank Act, namely changes in the FDIC assessment base, stricter oversight of too-big-to-fail institutions and the inclusion of nonbank financial firms under consumer compliance regulation and supervision, ICBA is fervidly fighting to ensure a favorable regulatory and legislative environment that will allow community banks to thrive.

Key Dodd-Frank regulations that ICBA is working to fix include:

• Federal Reserve rule on debit card interchange,

• Qualified Residential Mortgage or “QRM” provision, and

• Consumer Financial Protection Bureau (CFPB).

Key ICBA-backed legislation includes:

• The Communities First Act, H.R. 1697;

• The Common Sense Economic Recovery Act of 2011, H.R. 1723; and

• A bill to instruct the Federal Deposit Insurance Corporation Inspector General to study the impact of insured depository institution failures, H.R. 2056.

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