WASHINGTON—Iowa Superintendent of Banking and Chairman of the Conference of State Bank Supervisors (CSBS) Thomas B. Gronstal addressed the House Financial Services Committee today concerning Representative Walter Minnick's Commercial Real Estate Stabilization Act, which seeks to create liquidity in the commercial real estate (CRE) market, support small businesses and foster job growth.
 
Gronstal looked to his home state of Iowa and information provided by other state bank regulators to present the case for the need to stabilize the CRE market.
 
"Some regions of the nation, portions of the banking industry, and financial markets continue to face significant challenges, even as other areas are showing signs of recovery," Gronstal stated.  "Given where we are in the current economic cycle, we believe Congress can play an important role in the CRE market by providing a federal guarantee for prudently underwritten loans."
 
Gronstal went on to praise the proposed legislation for its efforts to restore stability and certainty in the market, but recommended that state bank regulators be represented on the program's Oversight Board, given CRESA's stated focus on smaller institutions and state bank regulators' knowledge of local economies. 
 
Speaking for CSBS, he stated, "We commend Congress for re-affirming the dual-banking system in the Dodd-Frank Wall Street Reform and Consumer Protection Act, and we believe Representative Minnick's proposal is also an affirmation of the dual-banking system and the vital role community banks play in our national economy."
 
The full text of Gronstal's testimony can be viewed here.