ICBA Supports FSOC Vote to Propose Stricter Standards for Largest Nonbank Financial Firms

Washington, D.C. (April 24, 2023) — Independent Community Bankers of America (ICBA) President and CEO Rebeca Romero Rainey issued the following statement on the Financial Stability Oversight Council’s recent meeting.

“ICBA applauds the Financial Stability Oversight Council’s unanimous votes to propose new interpretive guidance on nonbank financial company designations and an analytic framework for identifying potential risks to financial stability from certain activities. Large nonbank financial institutions that pose outsized risks to the financial system similar to those posed by large banks should be required to meet similar capital and liquidity standards. We support the publication of new guidance that will level the playing field, address risks to financial stability, and provide transparency to the public.

“ICBA has consistently supported enhanced capital, leverage, and liquidity standards for the largest bank and nonbank financial institutions. In a January letter, for instance, ICBA urged federal regulators to apply stricter regulatory standards on large regional banks to avoid government bailouts in the event of financial instability.

“ICBA looks forward to continuing to work with policymakers to address systemic risks and to ensure Washington’s response to the recent failures of large and risky financial institutions does not affect the community banks that continue to appropriately manage risk and do right by their customers.”

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 employ nearly 700,000 Americans and are the only physical banking presence in one in three U.S. counties. Holding $5.8 trillion in assets, $4.8 trillion in deposits, and $3.8 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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