The Independent Community Bankers of America (ICBA) today applauded Treasury Secretary Scott Bessent for his remarks supporting community banks and committing to the continued independence of the nation’s prudential banking regulators and dual banking system.
“ICBA and the nation’s community banks strongly support Secretary Bessent’s remarks on the positive role of community banks to Main Street communities and ruling out consolidation of prudential banking regulators,” ICBA President and CEO Rebeca Romero Rainey said. “Community banks are strong advocates for streamlining federal banking regulations and building efficiencies, and any structural reforms should focus on promoting agency accountability and ensuring regulatory oversight is tiered and risk weighted.”
Speaking today in New York, Secretary Bessent said the Trump administration’s work to streamline banking regulations and ensure agency coordination would not include consolidation of the nation’s prudential banking regulators.
“To be clear, this does not mean consolidation of agencies, but coordination via Treasury, such that our regulators work in parallel with each other and industry,” he said. Secretary Bessent’s position echoes ICBA’s longstanding views that the independence of the nation’s bank regulators and the dual banking system are unique features of the U.S. financial system that should be preserved.
Further, Secretary Bessent cited the value of community banks to local communities and the problem of excessive regulatory burden, noting community banks “are one of the most important reasons for the U.S. economic performance of recent decades” but are “overloaded with unproductive reporting requirements that have little to do with reducing material financial risk.”
“Wall Street’s done great,” Secretary Bessent said. “Wall Street can continue doing well. But this administration is about Main Street.”
ICBA looks forward to continuing to work closely with the 119th Congress and Trump administration to advance reforms under its “Repair, Reform, and Thrive” plan that will ensure community banks can continue meeting the banking needs of local communities.