ICBA Supports Bill Promoting Community Bank Formation to Meet Needs of Local Communities

Washington, D.C. (Jan. 16, 2025)-Independent Community Bankers of America (ICBA) President and CEO Rebeca Romero Rainey today released the following statement on the introduction of ICBA-supported legislation to promote the creation of new community banks.

"With excessive regulatory burdens hindering the formation of new community banks - which are needed to preserve access to banking services in local communities - ICBA and the nation's community bankers strongly support new legislation from Rep. Andy Barr and Sen. Cindy Hyde-Smith to reform rules on de novo banks. ICBA urged this needed reform in its open letter to the 119th Congress along with a menu of legislative options to support community banks and local economies nationwide.

"The Promoting New Bank Formation Act will direct regulators to phase in de novo bank capital standards, remove limitations on agricultural lending, and make other needed changes to ensure continued access to financial services for consumers and small businesses in local communities nationwide.

"Eliminating obstacles to de novo bank formation to promote access to banking services in local communities is a critical piece of ICBA's 'Repair, Reform, and Thrive' plan for the 119th Congress and incoming Trump administration, which focuses on fixing broken regulations harming communities, unleashing the power of locally based banking, and fueling the future of community banking.

"We look forward to working with Rep. Barr, Sen. Hyde-Smith, and other policymakers to advance this critical legislation."

About ICBA
The Independent Community Bankers of America® has one mission: to create and promote an environment where community banks flourish. We power the potential of the nation's community banks through effective advocacy, education, and innovation.

As local and trusted sources of credit, America's community banks leverage their relationship-based business model and innovative offerings to channel deposits into the neighborhoods they serve, creating jobs, fostering economic prosperity, and fueling their customers' financial goals and dreams. For more information, visit ICBA's website at icba.org.