Academic journal article ABA Banking Journal

Okay, We've Got Their Attention

Academic journal article ABA Banking Journal

Okay, We've Got Their Attention

Article excerpt


At last month's FDIC conference on the Future of Community Banking, federal regulators assured bankers that their concerns about the impact of the Dodd- Frank Act were understood and shared.

Ben Bernanke, chairman of the Federal Reserve Board, addressed the gathering and said that "community banks [are] an unmatched source of crucial grassroots information about developments in the economy as a whole, which is necessary for effective monetary policy."

Bernanke said community bankers tell him repeatedly of their concerns about the changing regulatory environment--particularly the implications of Dodd-Frank. "These new standards are not meant to apply to, and clearly would not be appropriate for, community banks," Bernanke explained. "Indeed, the Dodd-Frank Act explicitly exempts community banks from these new enhanced standards. Community banks express concern," he continued, "that the more stringent requirements for larger institutions will eventually find their way to smaller firms. That, however, is not our intent, and we will work to ensure that it does not happen."

Bankers listened respectfully, but not all were ready to accept that assurance. ABA recently made a guide available to all banks under $10 billion in assets, titled Dodd-Frank and Community Banks: Your Guide to 12 Critical Issues. (See ABA Chairman's View, p. 6.)

Bernanke also sought to make sure that bankers are aware of the appeals process and ombudsman available to them when they cannot resolve differences with a bank examiner. …

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