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Keating: Dodd-Frank threatens community bank, communities across America

Frank Keating

American Bankers Association President and CEO Frank Keating recently said that Dodd-Frank regulations threaten small banks and the communities they serve.

“Many small towns and communities of America…exist because of the bank in their town…and if those small banks that had nothing to do with the fall of ’08 are crippled as a result of pile-ons of regulations and costs, they’ll find a buyer…or they’ll just get out of the business entirely,” Keating said during an interview with Bloomberg Radio. “I have never seen more small-bank CEOs as depressed and distressed as they are right now, and that’s not healthy for America.”

Keating also said that the sheer compliance required under the 7,500 pages of the Dodd-Frank Act is daunting for both small and big banks.

“Everybody’s got to read every single word,” Keating said. “Smaller banks have a real problem…larger banks can hire up to address it. But, more complexity will [mean] less lending and delayed lending.”

Additionally, Keating said that certain aspects of Dodd-Frank threaten the survival of community bank business models.

“What is the Consumer Financial Protection Bureau going to do in the fai-lending space? What is the [CFPB] going to do in terms of the overdraft fees and all of these other things that are central to some small banks’ business models?” Keating said.

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