The Faces of Regulatory Burden

Guest blog by Amber R. Van Til, JD, IBA Senior Vice President-Government Relations

The Indiana Bankers Association had the distinct privilege, at the invitation of Sen. Dan Coats, of bringing bankers to Washington DC last Thursday to testify before U.S. House and Senate staffers on the effect of regulatory burden on community banks. Sen. Coats serves on the Joint Economic Committee, which is playing a major part in the discussion on tax and regulatory reform.

Kurt D. Rosenberger, president and CEO of Our Community Bank, Spencer, and Michael L. Kubacki, chairman and CEO of Lake City Bank, Warsaw, ably represented the Indiana banking community in our nation’s capitol.

Kurt Rosenberger testified regarding the impact of regulatory burden on small, rural community banks. He explained that rural communities depend on their community banks for economic development, loans, community investment and leadership. He focused his remarks on the effect of regulations currently streaming in, regulations yet to be written, and the negative impact that burdensome regulations have on banks’ ability to serve their communities.

Mike Kubacki used his platform to educate the staffers about how regulatory rules affect banks. He discussed the effect of new capital requirements, and how banks assess asset liability under the new regulations. Mike educated the audience on the effect that examinations have on the banking industry. He also discussed the proposed QM regulations, and observed that the banking industry needs to remain a risk business for the benefit of consumers.

Kurt and Mike agreed that the banking industry will weather this regulatory storm, just as it has prevailed through past ones. They cautioned, however, that Congress needs to consider how quickly the industry can realistically digest the influx of new regulations, and which regulations are truly beneficial.

The IBA extends special thanks to Mr. Rosenberger and Mr. Kubacki for their exceptional testimony on behalf of Indiana’s banking community. We also thank Sen. Coats and his wonderful staff for their hospitality, and for inviting us to present on behalf of the banking industry.

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