Peace Garden News

WASHINGTON – U.S. Senator Kevin Cramer (R-ND), member of the Banking Committee, spoke at the Independent Community Bankers of America (ICBA) Capital Summit and participated in a Q&A session. In his remarks to hundreds of ICBA members from across the nation, he framed the federal policy landscape and discussed the critical role community banks play in preserving the stability and resilience of the financial system. Senator Cramer met with the Independent Community Bankers of North Dakota in his office yesterday.

“Because of their size and scope of service, community banks can be nimble in their responses to market shocks. We witnessed it during the aftermath of the SVB and Signature collapses, so despite the posture of many in the administration, reflexive and broad overregulation is not an appropriate reaction to recent events,” said Senator Cramer. “Especially now, we should be working to safeguard community banks’ uniqueness, bolster their position to drive our local economies, and empower their work from the federal level.”

https://www.cramer.senate.gov/imo/media/image/ICBA%20Speech%206.jp

Regarding recent bank collapses, Senator Cramer underscored supervisory shortfalls by regulators and firm executives. The laws to avert bank failures exist, but are rendered ineffective when the entities responsible for enforcing them neglect to do so. As federal authorities weigh certain changes, they must acknowledge the material differences between small financial institutions and our nation’s largest ones. Community banks should not be burdened with more red tape as a result of mismanagement and poor oversight at failed banks.

The Senator also talked about several impactful policy issues before the Senate Banking Committee. In particular, he highlighted his leadership on two key pieces of legislation. The SAFE Banking Act, which previously passed the U.S. House of Representatives, would prohibit a federal regulator from penalizing depository institutions for providing services to legitimate cannabis-related businessess. The Fair Access to Banking Act,which garnered support from over one-third of the Senate, would prevent the weaponization of financial services for political purposes. Both bills recognize community banks’ strengths in understanding their customers and making decisions based on the creditworthiness of their clients.  

Finally, in his speech and during the Q&A session, the Senator expressed his support for establishing a more robust crop insurance program in the upcoming Farm Bill.

https://www.cramer.senate.gov/imo/media/image/ICBA%20Speech%209.jpg

Original source can be found here.