Community Banks and Regulatory Burdens
Community banking in the U.S. is being slowly strangled by regulations, according to a former chair of the Federal Deposit Insurance Corp.
A recent visit to a community bank highlighted the issue, where a bank employee asked a young woman opening her first account a series of intrusive questions about her personal life, job history, and finances.
This experience was not isolated, as the former chair's friend and her son, who had banked at the institution for over 10 years, were also subject to a similar list of invasive questions.
The regulations place heavier burdens on small banks than on giant ones.
The former chair, who used to oversee thousands of community banks at the FDIC, argues that community banks need relief from these suffocating regulations.
Author's summary: Community banks are struggling due to excessive regulations.