On April 16, the House Financial Services Committee’s Subcommittee on Financial Institutions and Consumer Credit will hold a hearing on “Examining Community Bank Regulatory Burdens.” Among the witnesses scheduled to appear is Charles Kim, Executive Vice President & Chief Financial Officer, Commerce Bancshares, Inc., who will appear on behalf of the Consumer Bankers Association. Mr. Kim is a member of CBA’s Government Relations Council.
A memo from the Committee’s majority staff provides background to Committee members about the regulatory compliance costs challenges facing community banks. Mr. Kim’s testimony is intended to convey the importance of enacting appropriate regulations that do not result in added costs for consumers or impede the ability of banks to provide quality products.
It is surprising that the witness list does not include any representatives from the CFPB or the federal banking agencies. In particular, the CFPB has acknowledged the need for it to make sure that the cost of complying with new regulations is not overly burdensome on small institutions and formed a Community Bank Advisory Council to provide feedback and recommendations.