ABA Perspective
A Robust Recovery Requires Consistent ‘Rules of the Road’
Over the course of the pandemic, the U.S. economy has been tested like never before and has more than proven its resilience. Tat’s thanks in no small part to our large and diverse financial system: a network of financial institutions of all sizes, charters and business models dedicated to providing the products and services that consumers and businesses need to thrive.
Rob Nichols, President and CEO American Bankers Association
Te diversity of our financial system is something that
is uniquely American. It is important that we preserve that diversity, but we must do so in a manner that ensures a level playing field between providers of financial services and protects all consumers equally.
In the American Bankers Association’s recently released Blueprint for Growth — a banker-driven document that will serve as our advocacy north star in the year ahead — we identified the need to promote innovation and ensure consistent regulation as one of the top priorities for the industry in 2021.
emerging technologies to a changing climate to recovering from a global pandemic.
Banks have always embraced innovation. Indeed, innovation has a vital role to play in increasing economic competitiveness, promoting financial inclusion and expanding access to banking services. However, financial innovation only provides these benefits when undertaken in a safe, responsible manner.
Tis means that a consistent set of regulatory standards must be applied to providers of financial services — be they credit unions, banks or fintech firms. Unfortunately, we’ve seen several instances in recent months of firms attempting to circumvent these regulatory standards by seeking charters that would allow them to access the banking system without being subject to the same rigorous regulatory standards that apply to the nation’s banks.
Te diversity of our financial system is something that is uniquely American.
Tis is not a new goal, but it remains important at this moment in time as we confront the challenges of modern life — from
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mobankers.com
A prime example of this is Figure Bank, which recently filed an application for a national banking charter through the Office of the Comptroller of the Currency that, among other things, would allow it to operate without deposit insurance. If approved, this charter would enable Figure Bank to apply for membership in the Federal Reserve system while avoiding compliance with regulations like the Community Reinvestment Act.
We’ll continue to oppose the approval of charters like these, and we’ll continue to push back against any efforts that would enable new entrants into the financial services marketplace to cherry-pick which rules of the road apply to them.
We’ll also continue our efforts to advocate against further tilting the field for tax-advantaged entities like credit
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