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For Immediate Release
August 10, 2016
ABA Media Contact: Jeff Sigmund
(202) 663-5439
Follow us on Twitter: @ABABankers

ABA Statement on White House Council of Economic Advisors Report Citing Dodd-Frank Had No Impact on Community Banks

By Rob Nichols, ABA president and CEO

​          “There is a serious disconnect between this report and the daily reality for America’s hometown banks and the communities they serve.  The 1,708 community banks that have disappeared since July 2010 would be best equipped to speak on this topic – except they can’t.  Unfortunately, we hear from many community bankers from strong, healthy banks that are ready to sell because new regulations have made it much more difficult to meet the needs of their clients, customers and communities.  
          “Ask community bankers this question:  Since Dodd-Frank, have you hired more loan officers or more compliance officers?  Then ask bank customers how much service they get from compliance officers.  The current state of affairs means fewer loans, slower job growth and a weaker economy.  
          “Certainly, there are other factors beyond the Dodd-Frank Act that have caused the closure of community banks, and bankers continue to work with their regulatory agencies and Congress to address these issues.  But the more than 24,000 pages of proposed and final rules belies the idea that Dodd-Frank had no impact. The rules intended for the largest banks are too often considered ‘best practices’ for all banks, compounding the hardship for smaller institutions.  Arbitrary size thresholds are stopping community banks from growing because of the added regulation, thus limiting the services they could provide.  
          “With so many banks merging and practically no new charters, it’s only a matter of time before some customers and communities have their banking options limited. Instead of documenting the dramatic decline in the number of banks, lawmakers should work with the industry on how to reverse that trend.
          “Comprehensive regulatory relief is long overdue for community banks.  These institutions are working hard to drive economic activity in America’s cities and hometowns, but the regulatory environment is holding them back.  And each day another community bank leaves the field, it makes that community – and our economy – poorer.”

The American Bankers Association is the voice of the nation’s $16 trillion banking industry, which is composed of small, regional and large banks that together employ more than 2 million people, safeguard $12 trillion in deposits and extend nearly $8 trillion in loans. Learn more at
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