ICBA applauds Secretary Bessent for supporting community banks, prudential agency independence

ICBA applauded Treasury Secretary Scott Bessent for his remarks supporting community banks and committing to the continued independence of the nation’s prudential banking regulators and dual banking system.

Remarks on Consolidation: Speaking in New York, Bessent said the Trump administration’s work to streamline banking regulations and ensure agency coordination would not include consolidation of the nation’s prudential banking regulators. “To be clear, this does not mean consolidation of agencies, but coordination via Treasury, such that our regulators work in parallel with each other and industry,” he said.

Pro-Community Bank Statements: Further, Bessent cited the value of community banks to local communities and the problem of excessive regulatory burden, noting community banks “are one of the most important reasons for the U.S. economic performance of recent decades” but are “overloaded with unproductive reporting requirements that have little to do with reducing material financial risk.”

Main Street Focus: "Wall Street's done great,” Secretary Bessent said. “Wall Street can continue doing well. But this administration is about Main Street."

ICBA View: Bessent’s position echoes ICBA’s longstanding views that the independence of the nation’s bank regulators and the dual banking system are unique features of the U.S. financial system that should be preserved.

ICBA Response: In a national news release, ICBA President and CEO Rebeca Romero Rainey said community banks strongly support Bessent’s remarks touting their positive role to Main Street communities and ruling out consolidation of prudential banking regulators. “Community banks are strong advocates for streamlining federal banking regulations and building efficiencies, and any structural reforms should focus on promoting agency accountability and ensuring regulatory oversight is tiered and risk weighted,” she said.

Outlook: ICBA said it looks forward to continuing to work closely with the 119th Congress and Trump administration to advance reforms under its “Repair, Reform, and Thrive” plan.

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