Windfall for community banks not all it seems

Author: John Crabb | Published: 22 Jun 2018

The recent wave of changes to the rules governing the US banking industry has been particularly kind to smaller institutions and community banks but could go further according to the chief executive of one community bank. Proposed changes to the Volcker Rule exempting banks of a certain size as well as moves to increase stress testing thresholds, for example, have removed significant regulatory burden. 

"To take a hard look at all of the rules and to make changes that increase the amount of capital in the system would be good for America and is good for community banks, whether we like it or not," said Jerry Ersnt, chief executive of Horizon Community Bank in Arizona. "Sometimes you have to do a little extra work to make sure we are running down the right part of the railroad tracks."

Community banks provide a valuable source of funding in small town...