Colwich's Legacy Bank President Testifies On Capitol Hill

Statement

At my request, Legacy Bank President Frank A. Suellentrop of Colwich, Kansas, testified this week before the Senate Banking Committee's Subcommittee on Financial Institutions about the challenges facing community banks in the current regulatory environment. The Subcommittee was fortunate to receive a strong dose of Kansas common sense from Frank, a fourth-generation banker who shed light on the disconnect between banking regulators in Washington and the experiences of community banks like Legacy Bank.

I remain concerned that community banks are being prevented from making good loans to creditworthy borrowers in their hometowns because of overregulation by Washington. Until we reach a point where community banks are willing and able to make prudent loans to customers, I fear our economic recovery will continue to lag. One of the most significant roadblocks to community bank lending is the uncertainty coming out of Washington. Businesses and banks alike keep waiting for the next burdensome regulation or rulemaking to come down the road.

Frank gave my colleagues a good sense of what is happening on Main Street. He has found himself subject to examiners who insist on micromanaging loan decisions, constantly looking over the bank's shoulder, and questioning the creditworthiness of customers with whom his bank has been dealing with for years.

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