FirstCapital Bank Chairman Testifies
FirstCapital Bank of Texas Chairman and American Bankers Association (ABA) Chairman-Elect Ken Burgess recently testified before the House Financial Services Subcommittee on Financial Institutions and Consumer Credit in Washington D.C.
Speaking on behalf of the ABA, Burgess discussed how Excessive regulation discourages investors from launching de novo banks, thus reducing capacity for economic growth and financial choices for consumers and businesses across the country. While the interest rate environment and post-financial crisis economic conditions have played a partial role in the drought of de novo charters, Burgess laid out evidence that “excessive regulation” is the driving factor.
Since the Dodd-Frank Act passed in 2010, only six new banks have been chartered, while nearly 2,000 banks have closed, sold or failed. Meanwhile, regulatory requirements have put pressure on earning assets and sources of deposits, as well as on directors, artificially limiting interest in new banks. “It’s time to think differently to encourage new banks — by requiring less capital, reducing regulatory burden, permitting greater flexibility in business plans, and lifting funding restrictions,” Burgess said.
Burgess was the only banking industry representative to speak before the House Financial Services Subcommittee. To read the full testimony, please click here.