Lankford: Small Banks Placed on Unlevel Playing Field

Press Release

Congressman James Lankford (R-OK) responded to comments made by Federal Reserve Chairman Ben Bernanke this weekthat the central bank would continue to play an increased regulatory role in small community banks.

"The notion that small community banks should have to "adapt' to a changing regulatory environment ignores the many challenges they face," said Congressman Lankford. "Chairman Bernanke's goal of creating a "level playing field' is essentially conceding that there are no differences between our nation's diverse range of banks. By placing small banks on the same level, they are now being asked to comply with the hundreds of regulations that are coming down as a result of last year's financial "reform' legislation. This is no easy task -- small banks simply do not have the same resources in terms of staff and technology to meet these new onerous standards. Regulatory compliance weighs down our local banks with additional costs and red tape. Every dollar spent to comply with overreaching rules is a dollar lost to spur our economic recovery.

"If Chairman Bernanke truly believes that small banks play a vital role in job creation, then he should relieve the pressure they are facing not add to it. Community banks must be freed up to allow more lending and the endless barrage of rules must stop, or they will find it easier to close their doors and allow a buyout by a larger bank. Institutions with decades of local trust will be forced to exit the community, only to be replaced with an outside bank that has no relationship with the local fabric of that community."

Source