WASHINGTON Rep. Andy Barr, R-Ky., has introduced legislation aimed at making it easier for new community banks to open in areas that are underserved by the banking system.
The Promoting Access to Capital in Underbanked Communities Act would encourage the formation of new banks in locations where bank branches are scarce. It would give de novo banks more time to meet capital requirements and would ease other regulatory burdens on new community financial institutions.
The key to economic growth and recovery throughout the country is having access to capital for individuals, families and small business entrepreneurs, Barr said in a press release. My proposal rolls back government regulations and paves the way for investment to flood into underserved communities to make sure that the economic recovery is not uneven.
The legislation would require federal banking regulators to jointly issue new rules that would give de novo banks up to three years to meet their applicable capital requirements in order to mitigate the strains of starting a new bank.
The key to economic growth and recovery throughout the country is having access to capital for individuals, families and small business entrepreneurs, said Rep. Andy Barr, R-Ky.