Common-sense rules

As a born and bred Arkansan and banker, I am proud that if you go to any local baseball field, football field, gymnasium, nonprofit charity fundraiser, or local school event you most likely will see the local bank supporting the community in which their employees and customers work and live. It is often said that if a community loses its post office or bank, it dwindles away.

In 1995 we had 243 banks chartered in Arkansas; just 10 years ago we had 143 banks chartered in the state. Today that number is less than 100. This significant decrease is partially due to the burdensome restrictions that have been placed on the banking industry. During the great recession “bank” became a four-letter word to describe the largest Wall Street investment bank to the smallest community bank in Arkansas. “Banks” were all seen as the cause for the financial issues of the day when, in fact, it was the community banks that kept this state and our country moving forward.

However, it has become much more difficult since the Dodd-Frank Act to meet the needs of Arkansans. This legislation is full of unintended consequences that even its initial supporters agree should be addressed. The Financial CHOICE Act, which was just passed in the U.S. House, has the common-sense regulations that Arkansas banks can use to help facilitate the dreams and aspirations of Arkansans. It includes easing of some of the onerous requirements for a mortgage loan that is kept in the bank’s portfolio. It will allow regulators to tailor oversight to meet the risk profiles of each financial institution, so local community banks won’t be painted with the same regulatory brush as the mega banks.

A healthy Arkansas depends on a healthy banking system. Please encourage our members of Congress to support full passage of the Financial CHOICE Act.

JAMES TAYLOR

Rogers