Pulaski Times

Rep. French Hill has introduced a set of principles to bolster the community banking sector in the United States. His proposal is open for public comments until December 31, 2024, as it will shape his legislative agenda in the upcoming 119th Congress. This initiative builds on his previous efforts, including the Small LENDER Act and aims to adjust the role of the Consumer Financial Protection Bureau (CFPB).

Hill emphasizes that no former banker has chaired the House Financial Services Committee in over a century. He stated, “I have a plan to make community banking great again in this country,” and seeks feedback on his proposals while supporting President Trump's economic growth policies.

Key principles outlined by Hill include regulatory fairness and transparency. He argues against federal regulators terminating customer accounts without valid reasons, a practice he links to political targeting under Operation Choke Point. Hill calls for investigations into agency conduct during the Biden-Harris Administration concerning firearms and digital assets industries.

Additionally, Hill proposes optional climate stress testing for financial institutions and advocates integrating climate considerations within existing frameworks instead of creating new mandates. He also suggests revisiting prudential regulation tailoring based on institution-specific factors like capital structure and business model.

The Federal prudential regulators are encouraged to embrace innovation with clear supervisory expectations for third-party relationships, particularly with fintech companies. Hill also proposes reforms in U.S. engagement with international regulatory bodies like the Basel Committee.

The banking examination process should become more transparent and accountable, according to Hill's proposals. The CFPB's authority threshold should be raised, indexed to inflation, and coordinated examination cycles between federal and state regulators should be implemented.

In terms of promoting a healthy banking industry, Hill supports automatic approval of bank mergers unless denied within 120 days by regulators. He encourages more flexibility in approving mergers in areas lacking physical bank branches and calls for an evaluation of government policies that hinder bank growth.

Industry leaders have voiced their support for Hill’s principles. Former FDIC Chair Bill Isaac endorses Hill’s call for common-sense reforms benefiting community banks. Kathy Kraninger from the Florida Bankers Association appreciates his expertise in addressing vital banking issues.

Texas Bankers Association's Chris Furlow believes these proposals can revitalize community banks essential for local economies. Arkansas Bankers Association CEO Lorrie Trogden commends Hill’s understanding of banks' needs across Arkansas and beyond.

Arvest Bank Chairman Kevin Sabin sees reduced regulatory burdens as beneficial for consumers through cost reduction and increased service access. First Security Bank Chairman Reynie Rutledge values Hill’s practical problem-solving during COVID-19 support measures.

Eagle Bank Executive Chairman Cathy Owen supports Hill’s commitment to strengthening community banking through informed policy-making. Pat Kennedy from Kennedy Sutherland LLP praises Hill's leadership as instrumental for community banks’ future success.

StoneCastle Partners CEO Josh Siegel appreciates how these principles promote growth-focused frameworks tailored to individual banks while fostering innovation by rethinking climate mandates.

Scott Norman from Texas Mortgage Bankers Association highlights Hill’s collaborative approach since joining Congress as pivotal for Texans relying on strong community banks.