The 21st Century ROAD to Unlocking Community Bank Growth

Title IX of the US Housing legislation could create a new growth pathway for community banks by easing constraints around deposits, bank formation and rural market expansion. By expanding the reciprocal deposit thresholds that are excluded from brokered-deposit treatment, the legislation may give community banks more flexibility to retain larger local relationships, including municipalities, businesses, nonprofits and other core community depositors without triggering more restrictive brokered-deposit rules.

The bill also looks beyond compliance relief to address the future pipeline of community banking. It directs regulators to streamline applications, provide caseworker support, encourage mentor relationships and review capital-raising and regulatory barriers that may slow new bank formation. A pilot program would also allow qualifying new community banks to phase in capital standards and adjust approved business plans as they build scale.

For rural markets, the legislation calls for a closer look at the rules and market conditions that limit depository institution growth, capital adequacy, profitability, and formation.

Join the S&P Global News & Research team and industry experts for a timely discussion on what the 21st Century ROAD Act could mean for community banking, from deposit strategy and new bank formation to rural market opportunity and long-term growth.

Speakers

Lauren Seay

Senior Editor
S&P Global Market Intelligence

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Brian Graham

Partner
Klaros

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James Stevens

Partner
Troutman Pepper Locke

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