Who We Are
Regional banks are the dependable backbone of the American economy, lending billions of dollars to consumers and small businesses across America.
Yet, the current one-size-fits-all regulatory environment does not reflect the significant differences between regional and systemically important banks, instead relying on an arbitrary asset size of $50 billion to determine regulations.
The Regional Bank Coalition formed with the common goal of advocating for appropriately tailored regulations which would allow regional banks to better serve their customers, communities, and economy. We’re advocating for a multi-factor system which develops a regulatory framework based on an institution’s entire risk profile instead of asset size.
Why Regional Banks Are Different
Regional banks operate a traditional banking business model: taking deposits and making loans, helping their customers to achieve their financial aspirations. Part of what sets regional banks apart is an emphasis on commercial and industrial lending to small- and medium-sized businesses. Smaller community banks find this role difficult to fulfill; the larger money center banks abandoned it long ago.
Regional banks are mid-sized institutions, larger than local community banks, but significantly smaller than the big money center banks. They are small enough to have strong bonds with their local communities and have enough scale to deliver the financial services needed to help mid-size businesses and industry to grow.
Taken together, the assets of the top 15 regional banks equal the size of about one of the Wall Street banks. Regional banks typically have a community presence in a geographic region, usually operating a strong retail branch network in several states.
About twenty banks fit the regional description. They operate in all 50 states and are responsible for more than $1.7 trillion in lending to the local communities in which they operate. Regional banks hold one-quarter of U.S. banking deposits. They employ more than 430,000 people in more than 23,000 banking offices throughout the country and have account or credit relationships with more than half of America’s households.