BankWise - February 14, 2019
“Community banks are a critical engine of the economy, and they play a key role in providing access to credit in communities of all sizes–big, small, rural, and every size in between.”
Federal Reserve Governor Michelle W. Bowman on Feb. 11.
The Federal Reserve has an obligation to tailor supervision to community banks, Governor Mikki Bowman said recently in her first public speech.
“Given the straightforward nature of community banking, regulators have an obligation to develop and refine approaches to supervision that fit the smaller size and less-complex risk profiles of these banks,” she said in the Feb. 11 speech.
Democratic Sen. Amy Klobuchar announced she will be running for President; her announcement was made amid flying flakes in Minneapolis on Sunday.
Unlike fellow Presidential hopeful Sen. Elizabeth Warren (D-Mass.), financial reform isn’t at the center of Klobuchar’s platform. Her bid included calls for universal health care, cheaper prescription drugs, action against climate change, universal background checks on gun sales, a constitutional amendment to limit corporate political donations and stronger data privacy.
Klobuchar voted against reg relief bill S. 2155, but she did engage with ICBM leaders to voice her support for the community banking provisions in the bill. Klobuchar has previously co-sponsored bills designed to provide specific regulatory relief for community banks and committed to working with ICBM on beneficial legislation in the future.
National and state policymakers are increasingly turning their eyes to the needs of rural America:
Earlier this week, Fed Chair Jerome Powell gave a speech on economic development in rural areas in which he emphasized the importance of job training and encouraging entrepreneurship. He also acknowledged the impact of branch closures and the importance of community banks to rural areas.
After a delay caused by the shutdown, the latest World Agricultural Supply and Demand Estimates report showed a slight decrease in projected 2018-19 ending stocks for both corn and soybeans.
Total corn usage is expected to be up slightly, but soybean exports are projected to decline about 12 percent, largely because of the trade war with China.