STATEMENT OF
DOREEN R. EBERLEY
DIRECTOR
DIVISION OF RISK MANAGEMENT SUPERVISION
THE FEDERAL DEPOSIT INSURANCE CORPORATION
on
REGULATORY RELIEF FOR COMMUNITY BANKS
before the
COMMITTEE ON BANKING, HOUSING, AND
URBAN AFFAIRS
U.S. SENATE
February 10, 2015
538 Dirksen Senate Office Building
DOREEN R. EBERLEY
DIRECTOR
DIVISION OF RISK MANAGEMENT SUPERVISION
THE FEDERAL DEPOSIT INSURANCE CORPORATION
on
REGULATORY RELIEF FOR COMMUNITY BANKS
before the
COMMITTEE ON BANKING, HOUSING, AND
URBAN AFFAIRS
U.S. SENATE
February 10, 2015
538 Dirksen Senate Office Building
Chairman Shelby, Ranking Member Brown, and members of the Committee,
I appreciate the opportunity to testify on behalf of the Federal Deposit Insurance
Corporation (FDIC) on regulatory relief for community banks. As the primary federal
regulator for the majority of community banks, the FDIC has a particular interest in
understanding the challenges and opportunities they face.
My testimony will highlight the profile and key performance information for
community banks. I then will discuss the current interagency review to identify outdated,
unnecessary, or unduly burdensome regulations. Next, I will describe how the FDIC
strives on an ongoing basis to implement regulations and our supervision program in a
way that reflects differences in risk profile among the industry participants, while
achieving our supervisory goals of a safe-and-sound banking system. Finally, I will
touch on our continued work under our Community Bank Initiative to respond to requests
we have received from community banks for technical assistance.
Community Bank Profile
Community banks provide traditional, relationship-based banking services to their
communities, including many small towns and rural areas that would otherwise not have
access to any physical banking services. Community banks (as defined in FDIC
research1) make up 93 percent of all banks in the U.S. – a higher percentage than at any
1 Our research is based on a definition of community banks that goes beyond asset size alone to account for
each institution’s lending and deposit gathering activities, as well as the limited geographic scope of
operations that is characteristic of community banks.
I appreciate the opportunity to testify on behalf of the Federal Deposit Insurance
Corporation (FDIC) on regulatory relief for community banks. As the primary federal
regulator for the majority of community banks, the FDIC has a particular interest in
understanding the challenges and opportunities they face.
My testimony will highlight the profile and key performance information for
community banks. I then will discuss the current interagency review to identify outdated,
unnecessary, or unduly burdensome regulations. Next, I will describe how the FDIC
strives on an ongoing basis to implement regulations and our supervision program in a
way that reflects differences in risk profile among the industry participants, while
achieving our supervisory goals of a safe-and-sound banking system. Finally, I will
touch on our continued work under our Community Bank Initiative to respond to requests
we have received from community banks for technical assistance.
Community Bank Profile
Community banks provide traditional, relationship-based banking services to their
communities, including many small towns and rural areas that would otherwise not have
access to any physical banking services. Community banks (as defined in FDIC
research1) make up 93 percent of all banks in the U.S. – a higher percentage than at any
1 Our research is based on a definition of community banks that goes beyond asset size alone to account for
each institution’s lending and deposit gathering activities, as well as the limited geographic scope of
operations that is characteristic of community banks.