The House of Representatives is set to vote on the Senate’s banking bill, which cleared the upper chamber by a 67-31 vote in March. The bill would help community banks and regional banks by easing many of the burdensome regulations in the Dodd Frank Wall Street Reform and Consumer Protection Act such as: raising the threshold at which banks are considered “too big to fail” from $50 billion to $250 billion; lowering capital requirements; and limiting the number of times banks would have to take the Federal Reserve Board’s “stress test” from annually to only periodically. For a look at what the new rules would mean for banks here, Bruce Page, president and CEO at Palm Coast-based Intracoastal Bank, offers the local spin.
Community bankers have lobbied hard for a change in the “one size fits all” approach of Dodd Frank. Are you pleased that relief appears to be on the way?
Yes, I am pleased with Congress’s plan to approve legislation that will provide much needed regulatory relief for the community banking industry. This will reduce some of the burden placed on banks with the passage of the Dodd Frank Act in 2010. This should improve locally based lending and economic growth. I am also hopeful this is a sign of a more favorable regulatory environment going forward.
How has the regulatory framework created by Dodd-Frank affected community banks like Intracoastal?
This legislation has been a significant challenge for the community banking industry overall. While Intracoastal has been affected, I believe the impact has been less of a problem for us than for other banks. We have the unique advantage of opening during the great recession, which enabled us to adjust our strategy to minimize the potential impact from the Dodd-Frank legislation.
Is there a “Goldilocks” level of banking regulation, where it is just right?
Yes, I believe there is an ideal level of regulation that would provide the appropriate checks and balances needed on the banking industry. However, I think we a far away from this as the banking industry continues to be over regulated even with the current plan to relieve some of this burden.
What is your outlook for the banking industry through the end of 2018 and beyond?
I have a favorable outlook for our bank and the banking industry overall. I am pleased with the steps being taken to ease some of the regulatory burden. This should assist the banking industry in fulfilling its important role as a financial intermediary. I think the banking industry is healthy and prepared to partner with businesses and consumers to grow the economy going forward.