American Bankers Association President and CEO Frank Keating said Friday in a Boston Business Journal column that the Dodd-Frank and Consumer Financial Protection Bureau should be reformed to reduce the impact on community banks.
Keating has been openly critical of the CFPB and Dodd-Frank. Like Keating, many critics of the legislation argue that Dodd-Frank is detrimental to the community bank model, noting that smaller banks don't have the resources to sort through and comply with new incoming regulations.
“Smaller institutions that don't have any compliance people [say] 'Capital is healthy. We want to lend, but regulators are telling us to be much more careful in how we lend," Keating said. "We can't hire that loan officer, we have to hire a compliance person, and [that] person doesn't bring any business in the door."
Keating has also criticized the CFPB, arguing that it wields too much power and faces too little regulation and oversight.
“Within the institution there is disquiet because of not only taxes, which…are going up, but the CFPB is…worrisome and ponderable because nobody can say no to it," Keating said. "The one thing bankers don't want is to be whipsawed."
Keating has served as an FBI agent, U.S. Attorney, children's book author and two-time governor of Oklahoma. He is committed to serve at least five years with the ABA, according to the Boston Business Journal.