Numerous trade associations representing the financial services sector issued statements expressing either support for or opposition to various legislative pieces proposing policy changes concerning consumer credit products and services, small business loans and more.
Learn about the views expressed in this roundup:
Trades reiterate opposition to interest rate cap
In a joint letter to House leaders, eight trade groups representing banks and credit unions expressed continued opposition to H.R. 1944, aptly named the “10 Percent Credit Card Interest Rate Cap Act.” The trades argued the bill would severely restrict credit availability for consumers and effectively harm the people it seeks to protect, citing research into state-led efforts to impose interest rate caps. They contended that interest rate caps have disproportionately negative effects on high‐risk borrowers by driving them to “sources of credit which are far more costly and less regulated.” Read more here.
Community bankers support anti-CBDC legislation
In a letter to members of Congress, the Independent Community Bankers of America (ICBA) expressed support for the reintroduction of H.R. 5403, which would prohibit the Federal Reserve banks from offering central bank digital currency (CBDC) products or services directly to individuals or issuing a CBDC to individuals or through an intermediary. It also would prohibit the Federal Reserve and the Federal Open Market Committee from using a CBDC to implement monetary policy. Read more here.
Trades reprise support for Community Advantage Loan Program Act
A coalition of financial trade organizations noted their previous support for legislation seeking to address shared concerns regarding the Small Business Administration (SBA) 7(a) loan program. The trade groups wrote to Small Business Committee leaders in the House and Senate in September 2023, asserting that, while they “understand and fully support SBA’s stated goals of aiding underserved borrowers,” they feared a slew of changes proposed by the SBA would “not meet those goals and may, in fact, create the potential for serious risk to SBA loan program integrity and to borrowers.” The letter was endorsed by the Consumer Bankers Association, the ICBA, the National Association of Government Guaranteed Lenders, as well as the two credit union trade associations that eventually merged to form America’s Credit Unions. Learn more about the trades’ renewed advocacy regarding this legislation here.
ICBA elects new chairman for 2025-26
ICBA selected Jack Hopkins, president and CEO of CorTrust Bank in Sioux Falls, S.D., to serve as the organization’s new chairman for 2025-26. His term began following the conclusion of ICBA LIVE in Nashville. In an address to attendees, Hopkins applauded community banks for weathering the pandemic, a challenging interest rate environment, and mounting regulations. He also urged community bankers to “to amplify their voices and be heard” while working together to build on their past successes for the benefit of their local communities. Read more here.