Page 13 - December 19. 2024 Bulletin

Rob Nichols
President and CEO
American Bankers Association
nichols@aba.com

Washington Update

It’s Time for a Regulatory Reset

Over the last four years, the banking industry has battled important to remember that the new administration and
an onslaught of new rules and regulatory changes that new Congress will not wield a magic wand.
have threatened to fundamentally alter how financial Undoing policy changes in a durable way can take just
institutions in this country operate. as long as putting new regulations into place, since the
Regulators have taken a de facto “one-size-fits-all” Administrative Procedure Act and its notice and comment
approach to rulemaking – ignoring the diversity of bank procedures apply. As we have noted in our many active
sizes, charters and business models within the banking lawsuits, regulators have frequently flouted the APA in
sector, as well as the undeniable trickle-down effects of recent years, and partisan agendas have too often driven
regulations that are, on paper, only targeted toward larger a rulemaking process that is supposed to be even-handed
institutions. For whatever reason, they have also chosen and fact-based.
to pursue rulemakings more tied to the past than the We have the opportunity now to get it right – by following
present. It’s time to stop fighting the last war and stay a transparent process and by working constructively
focused on the present and the future. to engage policymakers of both parties in crafting

ABA and the state associations have stepped up on behalf commonsense regulations that ensure our banking sector
of our members, challenging misguided final rules in court remains safe, sound and well-capitalized. That’s how we
wherever warranted and pushing back with facts and bring about meaningful, long-lasting change.
data to stop faulty assumptions from underpinning major At ABA, we are ready to roll up our sleeves and get to
regulatory changes and bogus claims about our industry work, together with our state alliance partners – and we
from spreading. We’ve had some notable successes over need your help.
the last four years, but it hasn't been easy.
We need every banker in this country to stay engaged
As we welcome 2025, a new presidential administration on the issues that matter. Reach out to your members of
and a new Congress, it’s time to reset the conversation Congress, particularly in states where freshmen lawmakers
around banking regulation. are taking office. Get to know your representatives, invite
That effort began right after the election during the them to your bank and introduce them to your customers
transition, as ABA worked to communicate our priorities and your employees. Help them to understand not just
to the incoming Trump administration. With leadership the important work banks do each day, but the ripple
changeovers anticipated at the regulatory agencies effect that the provision of credit can have in our cities,
following the inauguration – including at the FDIC, OCC towns and neighborhoods.
and CFPB – we expect to have the opportunity to share Finally, I invite every banker in this country to join us in
our perspective with the new players and help refocus Washington, D.C. April 7-9 for the 2025 ABA Washington
the conversation around rightsizing the supervision and Summit. This year’s annual gathering of bank leaders will
regulation of the banking sector. be critically important in making sure we have a policy
But while we can expect some of the new regulators environment that will unleash economic growth and allow
to pause some proposed rulemakings altogether, and banks to serve their customers and communities. We
Congress could use the Congressional Review Act to need all of you there to make sure our industry’s voice is
undo some of the most recent regulatory proposals, it’s heard loud and clear.

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