WASHINGTON, D.C.—Shayna Olesiuk, Director of Banking Policy, issued the following statement in connection with the release of a new Report: “Community Banks: Vital to Main Street Families, Small Businesses, and the Financial System.”

“Community banks are vital to Main Street America, providing a safe place for families and small businesses to safeguard and grow wealth and then reinvest local dollars to help communities thrive. Moreover, community banks have proven to be resilient in the face of merger pressures, economic downturns, and financial crises, steadfast in their commitment to serve small businesses with an outsized contribution to programs such as the Paycheck Protection Program which supported millions of small businesses during the COVID-19 pandemic, and innovative with the integration of new technology to serve their customers better.

“In our report, we discuss the need for a more accurate definition of community banks, community bank financial performance and resilience, and the proven successes of community banks in serving families, local communities and small businesses. We also detail the ways policymakers can and should support community banks:

• Maintain Strong Regulation for the Largest Banks and Combat Deregulation
• Support Innovation
• Regularly Review Bank Regulations
• Assess the Appropriateness of the Examination Cycle
• Revise Merger Criteria to Assess the Effects on Local Communities and Consumers
• Treat Community Banks the Same as Megabanks in the Supervisory Appeals Process
• Periodically Adjust for Inflation the Threshold for OCC Supervision Authority
• Protect the Banking System from Dangerous Crypto Activities
• Hold Large Banks Accountable for Managing Climate-Related Financial Risk
• Protect the Banking System and Community Banks from the Risk of Brokered Deposits
• Protect the FDIC, Deposit Insurance, and Advisory Committee on Community Banking
• Reform Deposit Insurance Coverage to Include Small Business Transaction Accounts
• Hold the Largest Banks Accountable for the Risks They Present to the Taxpayer, Economy, and Financial System
• Increase the Regulation and Oversight of Nonbanks
• Improve the Definition of a Community Bank”

The Report is available 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.