The power of community banks
reformers underestimate the significant amount of political power they wield. Even in the most broken and polarized Congress in decades, acts championed by community banks sail through as standalone legislation or attached to must-pass bills with barely any notice. Rather than a bulwark against the largest banks, community banks are just as likely to support changes that would help the largest banks while providing no new protections on them. Meanwhile research shows that community banks are doing fine financially, not struggling from regulations as most coverage shows.
.. “at least 75% of the decline in new bank formation would have occurred without any regulatory change” and that low interest rates and overall economic weakness are the bigger drivers. The fact that 10-year Treasuries fell from 2.25 percent to 1.5 percent this year, a sign of continued economic headwinds, put far more pressure on bank income than any reporting statement.