Capito Seeks Clarity From Fed Chairman For Community Lenders

Press Release

Rep. Shelley Moore Capito, R-W.Va., today discussed lending policies with Federal Reserve Chairman Ben Bernanke during his semi-annual appearance before the House Financial Services Committee, known as the Humphrey-Hawkins hearing.

After receiving the Chairman's testimony on the overall state of the economy, Capito outlined concerns that have been raised over the ability of institutions to lend; asking Mr. Bernanke: "I've heard from some local lenders that they have capital to lend, but they are getting conflicting messages from regulators. How do we ensure prudent lending and capital levels while working with these institutions to lend?"

In recent months, Capito has met with representatives of financial institutions who have raised concerns over their ability to lend. In some cases, they have lamented the mixed messages coming from federal regulators and from elected officials. On one hand, they are being instructed to conserve capital, while on the other they are being encouraged to lend.

"Small businesses are the lifeblood of our country's economy. These businesses depend on their local lenders for capital to make improvements, expand operations or to get their businesses off the ground," said Capito. "It is clear that we need a consistent policy to ensure that our job creators can regain access to credit and get our economy moving."

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