John W. Ryan
President and CEO, Conference of State Bank Supervisors
“The Conference of State Bank Supervisors (CSBS) appreciates Chairman Jeb Hensarling’s leadership in advancing the debate on how to right-size regulations for community banks. CSBS and state bank regulators strongly believe that financial institutions should be supervised in accordance to their size, complexity, and overall risk to the financial system.
“Currently, certain laws and regulations intended to address risks posed by the nation’s largest, most complex banks also impact small, local community banks. CSBS supports any effort by Congress to ensure current and future laws, regulations, and supervisory processes impact only the institutions for which they were intended. One way to achieve this would be to implement a common definition for community banks. Such a definition would enable Congress and supervisors to appropriately develop regulations based on an institution’s business activities, funding model, asset size, and geographic footprint.
“CSBS also encourages Congress to leverage the insight of state regulators while drafting and considering new legislation. State regulators charter and supervise over three-fourths of the nation’s banks, most of which are community banks. As such, state regulators have a unique insight into the role community banks play in their local economies.
“CSBS looks forward to working with Chairman Hensarling and the House Financial Services Committee to achieve commonsense reform.