Raising Consolidated Assets Threshold Under Small Bank Holding Company Policy Statement

Floor Speech

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Ms. KELLY of Illinois. Mr. Speaker, my Republican colleagues have put this bill forward under a simple proposition: small- and mid-size banks need the ability to provide more lending opportunities to best serve their depositors and their communities. I agree with that premise. Access to credit is crucial to economic development, rebuilding our economy, and creating jobs.

Banks and deposit institutions are vital to creating economic opportunity. From small business loans, farm loans, and mortgage loans, to a simple checking account, access to banking services is essential for all Americans.

I firmly believe that allowing banks to access additional capital is a good idea, and good policy, so long as those banks are using those funds to lend in a fair and responsible manner to those people and entities that need it most.

My amendment is simple. It merely adds a clause at the end of the bill stating that the increase to a level of $5 billion in assets will only apply to lenders who serve rural, minority, low-income, and otherwise underserved communities. These lenders will be required to have a clear and credible plan to expand access to banking services in those communities, and submit their plan to the Federal Reserve and to Congress.

Let me put it this way, Mr. Speaker. Suppose a very common scenario: a high school student has a part-time job after school and receives a little money each week from her parents to round out her spending cash. Suppose that student asked her parent to increase her allowance by 500 percent. She says she needs it because with school obligations, she will be working less and won't have enough money to both fill her car with gas, go to the movies, or out to dinner with friends.

Would a reasonable parent simply start handing over five times as much money as they used to? Or would they ask their daughter a few questions, making sure that the money is truly being spent on a productive thing?

The student may be completely right--a 500 percent increase may be justified--and they may have nothing but good intentions with the additional money.

But what is the harm in asking? What is the harm in making sure? It is what a responsible authority would do.

My Republican colleagues say this bill is needed to allow banks to lend--to spur economic growth and ensure banks are able to serve their customers.

What is the harm in making sure that lending goes to those creditworthy businesses and individuals who need it most?

If we want to encourage expansion of access to credit, let's make sure it goes to where it will do the most good: a mortgage loan for a single mom working hard to achieve her vision of the American Dream; a business loan for a small manufacturing company looking to open a new facility in an urban community that hasn't seen new jobs in years or decades; a farm loan for a small family farm so they can continue operations and raise the grain and produce what will feed the world.

My district is urban, suburban, and rural. So I have farmers, I have people from the city, and I have suburbanites. And I see the need in all of those communities.

My amendment simply states: the threshold increase will apply to you if you promise to responsibly lend to those who qualify and need it most and where it will do the most good, and to report to the Fed and Congress about how you plan on going about it. No regulations, just a simple justification.

Mr. Speaker, all creditworthy borrowers deserve fair access to the funds our banks have available to lend. Expanding lending opportunities and ensuring lenders can access capital to create more jobs and economic growth is something we all should be able to support. I simply want to ensure that when doing so, banks are responsible and provide credit broadly and fairly, including to the communities where it will do the most good.

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Ms. KELLY of Illinois. Mr. Speaker, I am just wondering, if this is duplicative, why are banks closing in these communities? If there are some concerns, why not work with me instead of rejecting this amendment? If it is duplicative, then why can't we add it and see how we can make things better? I still get a lot of concerns that people who need loans in various communities that I serve still don't get them.

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Ms. KELLY of Illinois. I yield to the gentlewoman from California.
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Ms. KELLY of Illinois. Mr. Speaker, on that I demand the yeas and nays.

The yeas and nays were ordered.

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