Representatives from small financial institutions in West Virginia told a House subcommittee on Monday that they are saddled with federal regulations meant to limit the abuses of large financial institutions.
“The viability of the community bank model is under attack [and] the pressure of complying with regulations is more difficult than ever,” Charles ‘Skip’ Hageboeck, the president and CEO of City National Bank, said, adding that the number of loan requests has slowed since the beginning of the year, according to Charleston Daily Mail. “It’s a tough time to be a community bank.”
Tom Brewer, the president and CEO of Peoples Federal Credit Union, said that compliance remains a challenge for his bank.
“There’s nothing in the regulations today that you could consider positive for business growth,” Brewer said, Charleston Daily Mail reports. “Overall, credit unions have a bright future in West Virginia, with the amount of loans slightly increasing. But, the number of credit unions continues to decline.”
William Loving, the president and CEO of Pendleton Community Bank, echoed those concerns.
“I can’t think of one aspect of our bank that is not touched by regulation,” Loving said, according to Charleston Daily Mail. “My staff spends more time on regulatory compliance than it did before 2008. I can assure you our bank did not have anything to do [with the recent financial collapse]. Every dollar spent on compliance is not loaned to customers. Every dollar the staff spends on compliance is not spent on customer service.”