WASHINGTON, D.C.—Congressman Andy Barr (R-KY-06), the Chairman of the Subcommittee on Financial Institutions, celebrated passage of the Main Street Capital Access Act in the House Financial Services Committee. The vote paves the way for the full House of Representatives to bring this bill up that will reduce red tape and expand access to credit in communities throughout the Commonwealth.
The legislation targets regulatory framework aimed at modernizing outdated rules, removing barriers that limit growth of small and mid-sized banks. Restoring common-sense bank regulation helps prevent the consolidation of power into a handful of large institutions, preserves a diverse and competitive banking system, and safeguards depositors and the broader economy.
“Community banks are the heartbeat of Kentucky’s economy. They power our small businesses, support our farmers, and help families achieve the American Dream. That’s why we must advance a regulatory framework that encourages growth and fuels economic activity on Main Street. I thank Chairman French Hill for his leadership and look forward to pushing this package across the finish line,” said Subcommittee Chairman Congressman Barr.
“As a former community banker, I know and have seen firsthand the important role they serve to drive the economic engine of America and help Main Street grow and thrive. Over the past year, the Subcommittee on Financial Institutions under Chair Barr’s leadership has worked tirelessly to examine outdated regulations, listen directly to small businesses, and confront barriers to access capital for small and mid-sized banks. I am proud to introduce the Main Street Capital Access Act with Chair Barr to reinvigorate our community banks and return commonsense back to Main Street,” said Chairman Hill at the time of the Main Street Act’s introduction.
“Kentucky banks have weathered storms, both literal and figurative, while continuing to serve their communities’ needs. The Act will put economic growth and resiliency at the forefront in allowing Kentucky’s community banks to focus on serving Kentucky’s businesses and consumers rather than focusing on overburdensome regulation and artificial barriers to service. We sincerely appreciate your continuous support of Kentucky’s community banks and for all of your hard work on the Act. We expressly support the Act,” said Ballard Cassady, President and CEO of the Kentucky Bankers Association, in a letter to Congressman Barr supporting the bill.
“We applaud Chairman French Hill and Subcommittee Chairman Andy Barr for their leadership in advancing the Main Street Capital Access Act, which will strengthen community banks by spurring new bank formation, promoting common-sense tailoring, improving supervision and more. We look forward to working with Congress and the administration on additional policies that will help community banks support local businesses, families and the broader economy,” said Rob Nichols, President and CEO of the American Bankers Association.
“Thank you to Chairman French Hill and Subcommittee Chairman Andy Barr for your leadership in introducing the Main Street Capital Access (“Main Street”) Act. This bill will strengthen regulatory supervision, accountability and transparency, and promote a healthy and more competitive banking industry. We appreciate your recognition of the important role that retail banks of all sizes play in driving the economic engine of America and helping Main Street thrive,” said Lindsey Johnson, President and CEO of the Consumer Bankers Association when the bill was first introduced.
“On behalf of the Independent Community Bankers of America (ICBA) and the nearly 45,000 community bank locations we represent, I write to thank you for scheduling a markup of the Main Street Capital Access Act (H.R. 6955). We urge all committee members to vote YES on this important community bank regulatory relief legislation. ICBA looks forward to working with the Financial Services Committee to advance H.R. 6955,” said Rebecca Romero Rainey, President and CEO of the Independent Community Bankers of America (ICBA) in a letter supporting the Main Street Act.
The Main Street Capital Access Act includes several key reforms to strengthen community banks and encourage de novo bank formation. Barr has long championed policies to make de novo bank formation easier to strengthen access to capital, especially in rural communities. Since the 2008 financial crisis, de novo formation has slowed significantly. There were 181 charters granted in 2007; but between 2010 and 2019, fewer than ten new banks opened, on average, per year. A total of 794 rural counties lost a combined 1,553 bank branches between 2012-2017, a 14% decline.
This bill strengthens de novo bank formation by:
- Establishing a three-year phase-in period for capital requirements, giving newly chartered banks time to grow deposits and build lending portfolios before meeting full regulatory thresholds.
- Reducing regulatory barriers that discourage new bank formation by requiring federal regulators to provide clearer guidance and more transparency in the chartering and supervisory process for new banks.
- Tailoring federal banking regulations to bank size and risk profile, ensuring community banks are not forced to comply with the same rules designed for the largest Wall Street institutions.
- Simplifying regulatory reporting requirements for small and mid-sized banks, reducing costly compliance burdens that divert resources away from lending to local businesses and families.
- Improving the bank examination process by requiring regulators to apply clearer and more consistent supervisory standards, including reforms to how banks are evaluated under the CAMELS rating system.
- Supports credit unions serving local communities by modernizing regulatory requirements and reducing unnecessary administrative burdens that limit their ability to provide affordable financial services.
- Expands flexibility for credit unions to serve underserved and rural communities, helping ensure families and small businesses have access to affordable loans and financial services.
- Encourages competition in the financial system by strengthening local lenders—both community banks and credit unions—so they can better compete with large national financial institutions.
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