For Immediate Release
June 8, 2017
ABA Media Contact: Jeff Sigmund
(202) 663-5439
Email: jsigmund@aba.com
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ABA Testifies on Need for Community Bank Regulatory Relief

​WASHINGTON —Targeted, sensible changes to financial regulation will allow banks to better meet their customers’ needs and help accelerate economic growth, according to testimony from the American Bankers Association before the Senate Banking Committee today.
 
Dorothy A. Savarese, chairman, president and chief executive officer of the Cape Cod Five Cents Savings Bank in Massachusetts, testified on behalf of ABA.  Savarese is also chairman of ABA.  In her testimony, Savarese emphasized that the industry is not recommending a rollback of all financial regulations, but is instead calling for reasonable adjustments that will allow banks to better serve their communities and the broader economy.
 
“We agree on the need for strong regulation. Indeed, lawmakers, regulators and bankers themselves took important steps after the crisis to improve safety and soundness,” Savarese said. “But included in the 25,000 pages of new and proposed rules since Dodd-Frank became law are requirements that are harming our ability to serve creditworthy customers and our communities.”
 
In her testimony, Savarese identified several ABA recommendations for Congress to consider.
 
“The overall trend of bank regulation in the last several years has been to standardize or homogenize the industry, making banks look more and more alike, when in fact we have a highly diversified industry necessary for a highly diversified $19 trillion economy,” Savarese said. “ABA believes that the best solution is to tailor regulations according to the risks and business model of the bank. This will be the most comprehensive road to successful bank regulation. It encourages diversity of business models while providing a regulatory program most adapted to the risks of each bank.”
 
Savarese testified on the same day the House is scheduled to vote on legislation that would reform many of the financial rules put in place after the financial crisis.
 
For a copy of Savarese’s full written testimony, please click here.
 
The American Bankers Association is the voice of the nation’s $17 trillion banking industry, which is composed of small, regional and large banks that together employ more than 2 million people, safeguard $13 trillion in deposits and extend more than $9 trillion in loans.
 
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