ICBA-Advocated FDIC Rule Ensures Community Banks Not Inadvertently Punished for PPP Leadership

Washington, D.C. (Oct. 20, 2020) — Independent Community Bankers of America (ICBA) President and CEO Rebeca Romero Rainey issued the following statement on the FDIC's adjustment to regulatory asset thresholds.

"ICBA and community bankers commend the FDIC for quickly responding to our calls to adjust regulatory asset thresholds for community banks due to their leadership in Paycheck Protection Program lending.

"Today's interim final rule allowing community banks to use their 2019 asset sizes for 2021 auditing and reporting requirements ensures nearly 300 community banks will not be inadvertently punished with higher regulatory costs for supporting the nation's economic response to the coronavirus pandemic. According to Small Business Administration data, community banks made nearly 2.8 million in PPP loans—some 60 percent of the program total—which saved an estimated 33.7 million jobs.

"As ICBA has said in letters to Congress and federal regulators since August, the surge of PPP loans has swelled the balance sheets of community banks. Without a fix by policymakers, temporary asset-size growth would inadvertently push many community bankers over regulatory thresholds and subject them to additional supervision, regulations, and costs.

"With today's action, the FDIC has acted swiftly to mitigate unintended regulatory consequences for the community banks that have tirelessly responded to the challenges of the coronavirus pandemic in local communities nationwide."

About ICBA

The Independent Community Bankers of America creates and promotes an environment where community banks flourish. ICBA is dedicated exclusively to representing the interests of the community banking industry and its membership through effective advocacy, best-in-class education, and high-quality products and services.

With nearly 50,000 locations nationwide, community banks constitute 99 percent of all banks, employ more than 700,000 Americans and are the only physical banking presence in one in three U.S. counties. Holding more than $5 trillion in assets, over $4.4 trillion in deposits, and more than $3.4 trillion in loans to consumers, small businesses and the agricultural community, community banks channel local deposits into the Main Streets and neighborhoods they serve, spurring job creation, fostering innovation and fueling their customers’ dreams in communities throughout America. For more information, visit ICBA’s website at www.icba.org.

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