The Mid-Sized Bank Coalition of America (MBCA) favors policy-making that makes the banking system strong, stable and safe by focusing attention, resources, and time on where risk lies.
Mid-Size Banks should not have the same cascading regulatory expectations and/or requirements that are perhaps more appropriate for large, complex, internationally-active financial institutions with immense product volume and assets.
Too often, regulatory requirements are arbitrary and not tied to any increase in risk and therefore harm mid-sized banks, and by extension the businesses and communities that depend on them.
Instead, these unnecessary regulations have the potential to impact a mid-sized bank’s ability to continue on a natural, healthy and safe growth trajectory. When a bank approaches the application of certain regulations, the leadership is forced to consider the significant increase in operating expense imposed by crossing an artificial barrier unrelated to risk.
The cost of regulating mid-size banks should not exceed its benefits.