The House Financial Services Committee, under the leadership of Chairman French Hill (AR-02), convened to discuss the state of community banking in the United States. The hearing focused on how these banks serve as essential financial institutions for local communities.
Chairman Hill emphasized the importance of community banks, stating, "Community banks know their communities best and research shows that when they close their doors, Americans suffer. Right now, our community banks are disappearing across the country." He outlined his principles to "Make Community Bank Great Again," which include over 30 reform ideas aimed at enhancing service capabilities, attracting investment, and adopting technology.
During the session, several bills were reviewed to address regulatory challenges faced by community banks. These included H.R. 478, the Promoting New Bank Formation Act; H.R. 940, the Fair Audits and Inspections for Regulators (FAIR) Exams Act; and H.R. 976, the 1071 Repeal to Protect Small Business Lending Act.
Subcommittee on Financial Institutions Chairman Andy Barr (KY-06) expressed his support for reducing regulatory burdens through legislative measures like H.R. 478. Rep. Roger Williams (TX-25) also highlighted concerns about compliance costs due to complicated reporting requirements and introduced legislation to repeal certain data collection mandates.
Witnesses from various sectors voiced their support for these initiatives. Cathy Owen from Eagle Bank & Trust Company acknowledged the critical role of community banks in economic growth and supported Chairman Hill's goals. Susannah Marshall from Arkansas State Bank Department warned about losing community banks without concerted efforts from Congress and federal agencies.
Rebecca Romero Rainey of Independent Community Bankers of America noted a shared commitment to strengthening community banks as vital components of national prosperity. Patrick J. Kennedy Jr., from Kennedy Sutherland LLP, emphasized the need for a regulatory framework that encourages innovation within community banking.
The hearing underscored a collective effort towards creating a supportive environment for community banks to thrive amidst evolving challenges.