WASHINGTON, D.C.— Phillip Basil, Director of Economic Growth and Financial Stability for Better Markets, released the following statement in connection with Better Markets’ new fact sheet, “The Banking Agencies’ Anti-Community Bank Policies Are Hurting the Main Street Economy”:

“Banking agencies under this administration clearly do not care about community banks or the economic growth of the communities they serve. Community banks support Main Street businesses, households, and farms far more than the large banks do. They already face an unlevel playing field that’s tipped heavily in favor of big banks, and that is now getting much worse. This only ends one way: big banks will become even bigger and gain more market share from community banks. The imbalance created by anti-community bank policies means more lending to large corporations and the wealthy, and less lending to Main Street borrowers.

“The agencies’ pro-big bank, anti-community bank policies are focused on two areas:

• Capital requirements are being weakened for the largest banks to the point of being close to or even less than capital requirements for community banks. The weaker the capital requirements, the smaller the ‘cushion’ that will protect those banks from losses.
• The supervisory framework is being weakened for the largest banks to the point where it is almost the same as the supervisory framework for community banks. Without strong supervision, risk-taking can go too far, endangering our economy.

“The banking agencies must turn their upside-down policy framework right side-up. Community banks deserve the same support that they in turn provide the real economy and our collective future.”

The fact sheet is available online here.

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Better Markets is a non-profit, non-partisan, and independent organization founded in the wake of the 2008 financial crisis to promote the public interest in the financial markets, support the financial reform of Wall Street and make our financial system work for all Americans again. Better Markets works with allies—including many in finance—to promote pro-market, pro-business and pro-growth policies that help build a stronger, safer financial system that protects and promotes Americans’ jobs, savings, retirements and more. To learn more, visit www.bettermarkets.org.