U.S. Department of the Treasury Recommends Regulatory Relief for Community Banks and Credit Unions
Though community banks hold less than 20 percent of the banking industry’s assets, they account for nearly 50 percent of small business loans.
Why are small businesses more inclined to fuel their growth using community-based lenders, rather than regional or national financial institutions?
One reason, according to an article from USA Today, is that small business owners are seeking a financial partner that can provide them with advice—and a personal touch—as they grow their businesses. They want to be seen as more than just a score.
Community banks and credit unions offer their customers a personal relationship. Their employees live in the communities that they serve and might have a better sense of the “buzz” around a local business than a lender at a larger organization would.
According to a new report by the U.S. Department of the Treasury, “community banks and credit unions serve the needs of the nation’s small businesses and rural communities and play a key role in agricultural lending.”
Clearly, community banks and credit unions play an important role in the nation’s economy, and the federal government may soon take steps aimed at making it easier for them to conduct business.
The Department of the Treasury report, prepared following an executive order to review the Dodd-Frank Wall Street Reform and Consumer Protection Act, encourages “reducing … regulatory burdens that hinder these institutions’ ability to serve their customers.”
With less paperwork and fewer regulations, community banks and credit unions may find it easier to focus on what they do best: build lasting relationships with their customers.
Omega Performance has training solutions that can equip your lenders with the skills they need to build personal customer relationships and make quality loans, so that you exceed your customers’ high expectations. Learn more about our eLearning courses for Community Banks. Contact us today!