In yet another example of community banks gaining traction over the influence of the U.S. financial system, the Independent Community Bankers of America (ICBA) announced last week that the Federal Reserve selected to more of its members to serve on its Consumer Advisory Council.
The Fed’s advisory council helps the central bank decide how to handle its responsibilities that fall under the Consumer Credit Protection Act, which was passed earlier this month. The policy enables to government to expand regulatory action in the financial sector. One item is the ability for the council to identify and regulate firms that are deemed “to big to fail” and take steps to reduce the systematic risk of that institution.
Considering that community banks have not had the same woes as the larger institutions, thanks to the avoidance of risky credit products, it likely bodes well that there are now three ICBA members on the council following this last announcement.
The two new members of the council will be William Dana Jr., president and CEO of Central Bank of Kansas City in Kansas City, MO, and Corey Stone, chairman of First Community Bank of New Haven in New Haven CT.
They join Betsy Flynn, president and vice chairman of Community Financial Services Bank in Benton, KY.
The ICBA’s voice has been heard more and more of late in Washington as the Obama administration looks for feedback about the sector from what is viewed as the more prudent group in the financial sector.