WASHINGTON, D.C.— Phillip Basil, Director of Economic Growth and Financial Stability at Better Markets, issued the following statement in conjunction with a comment letter regarding a proposal from the Office of the Comptroller of the Currency to redefine what it considers to be community banks and to expedite or reduce certain filing procedures for community banks:

“By proposing to expand its definition of community banks to include midsized banks, the Office of the Comptroller of the Currency is undermining true community banks and making the grossly unlevel playing field they face even worse. The OCC, along with the Federal Reserve and Federal Deposit Insurance Corporation, already has been pushing through significant policy changes that benefit the biggest banks over community banks, and this proposal adds insult to injury.

“The OCC provides no justification for expanding its definition to include banks with up to $30 billion in assets. This is nothing more than a giveaway to midsized banks that will result in them being under-supervised and under-regulated and give them a competitive advantage. Banks at or anywhere near that size are not community banks and should not benefit from reduced supervision and regulation.

“The banking agencies, including the OCC, must stop their top-heavy regulatory favoritism and start supporting community banks as much as they support our local economies and broad-based growth for all Americans.”

The comment letter 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.