Standing Strong for Community Banks – Now More Than Ever

Josh Hogue, ICBSD Immediate Past Chairman, President of Reliabank, ICBA Federal Delegate

As we look ahead to the upcoming election season, I want to remind everyone how critical it is that we elect candidates who understand and support community banking.

Community banks have long been the bedrock of local economies, offering personalized service, providing small business loans, and fostering economic development. We operate with a deep understanding of our customers’ needs because, like them, we live and work in the communities we serve.

Today, our industry is navigating increasing challenges. Federal legislation and regulatory shifts are having a direct impact on how we operate, making it crucial for all of us to stay up to date. The ICBA is actively tracking several key federal bills that have the potential to shape the future of community banking. While these issues may already be familiar, here’s a quick rundown of what’s currently being monitored.

SAFE Banking Act

One bill that’s currently on ICBA’s radar is the SAFE Banking Act, which is vital for providing legal protection and greater clarity for banks dealing with state-legal cannabis businesses. While this may not affect all community banks today, the regulatory clarity this bill offers is important for the industry as a whole.

Enhancing Credit Opportunities in Rural America Act

Additionally, the ECORA Act continues to be a priority for community bankers. This legislation would exempt interest earned on loans secured by agricultural real estate and homes in rural communities from taxation, which would encourage lending in these areas and drive rural economic growth.

Capital Standards

Lastly, we’re keeping a close eye on potential changes to capital standards that could place additional burdens on community banks. It’s vital that we advocate for proportional regulations—rules that recognize the unique role community banks play versus large, too-big-to-fail institutions.

This election season, I encourage you to get out and vote for candidates who will work to protect and preserve the important role we play in the financial ecosystem. We need leaders who understand that when community banks succeed, communities succeed. These legislators will be pivotal in shaping policies that strengthen our ability to serve our customers effectively.

Let’s continue to stand strong and make sure our voice is heard—not just in Pierre, but in Washington, D.C. as well.

 

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