While community banks remain resilient in the face of regulatory and economic pressures, it defies reason to suggest that their growth and ability to serve customers has been unhurt by Dodd-Frank and the massive regulatory burden it represents. The forces that have acted to stop new bank charters are the same ones that have led to the dramatic consolidation of the banking industry – excessive and complex regulations that are not tailored to the risks of specific institutions.
Nichols emphasized that America needs banks of all sizes and that community banks play a unique and vibrant role in our financial ecosystem. “We cannot afford to be sanguine about the disappearance of so many essential banks,” he said. “Unless we slow the trend, communities will feel bankers’ absence.”
Read the op-ed.