CBAI Meets with CFPB to Discuss Community Bank Issues

CFPBMeeting031819CBAI’s SVP Federal Governmental Relations, David Schroeder, met in Chicago with the Consumer Financial Protection Bureau’s Midwest Regional Director, John Schroeder (no relation), to discuss important issues for community banks. Schroeder’s meeting came on the heels of CFPB Director, Kathy Kraninger’s, first meeting with community bankers (CBAI bankers) after her Senate confirmation. At that February listening session, a delegation of CBAI leadership community bankers discussed with the CFPB Director a wide range of issues impacting their community banks.

During the meeting with the Regional Director, Schroeder specifically addressed CBAI’s position on two issues which are critically important to community bankers and consumers – the Federal Reserve’s role in payments system improvements and the modernization of the Community Reinvestment Act (CRA). Concerning both of these issues, CBAI has strongly advocated for regulatory actions that will enhance community banks’ abilities to serve their customers and communities.

CBAI has been diligent in urging the Federal Reserve to take an active role in payment system improvements. Community banks, consumers and small businesses cannot rely on the largest banks and financial firms, or embryonic fintechs, to provide fast and secure payments services – 24x7x365, to everyone and everywhere, as the Federal Reserve has done in the past and does today. The Federal Reserve must retain its preeminent role in payment systems! Read CBAI’s Comment Letter on Fed’s Role in Faster Payments.

New and different financial services, delivered in modern ways, require an up-date of the CRA. This modernization effort is a historic opportunity to highlight and retain parts of the Act, identify missed opportunities for additional credit, reduce the regulatory burden on community banks and include many other financial service providers for compliance – including credit unions, the Farm Credit System, fintechs and the OCC’s new Special Purpose National Banks. Read CBAI’s Comment Letter on the CRA.

Meetings like these helps inform the Bureau about all of the issues impacting community banks. While the CFPB examines and enforces against banks that are over $10 billion in assets, the Bureau writes consumer regulations for all banks. The CFPB’s understanding of issues impacting community banks is also important in its consultation with other regulators (e.g., the Bureau’s Director sits on the FFIEC and FDIC Boards) on issues not directly related to the Bureau’s rulemaking. CBAI thanks the Bureau for seeking our input.

March 18, 2019