Scott Bessent (Right), Treasury Secretary | https://www.facebook.com/photo
Thank you for the opportunity to speak with you today. I bring with me the best wishes from President Trump. His administration emphasizes that true national strength arises from the local level rather than from centralized power. This belief is not only about governance but also extends to financial policies.
In the past, financial policies have often favored larger institutions at the expense of smaller counterparts. This trend is set to change. The current administration's aim is to provide equal opportunities for banks of all sizes, from large entities like JP Morgan to local mortgage and loan providers. By reducing bureaucratic hurdles, the goal is to better channel capital to Americans in need.
"The administration aims to get capital to Americans who need it most by getting bureaucracy out of the way," conveyed Treasury Secretary Scott Bessent during his remarks before the American Bankers Association.
Small-town America has unique financial needs, much of which is understood by community bankers. The role of these bankers is crucial in the economic upliftment and financial inclusivity of Americans.
"Bureaucratic hubris has escaped the Beltway. Our goal is to put it back in its cage." He expressed the administration's plan to curb unnecessary regulatory interventions in banking.
Immediate actions the Treasury Department plans to take include a review and potential reform in the way community banks are supervised. Excessive compliance requirements and regulatory costs are seen as burdens that need addressing to ensure effectiveness without unnecessary overreach.
"We should conduct our own analysis from the ground up to determine a regulatory framework that is in the interests of the United States," Bessent stated. This perspective aims at tailoring regulations that balance safety, risk, and fairness while preventing an overdependence on international standards, which may not align with local priorities.
Further, planned measures include modernizing regulatory capital standards and reforming supervision approaches to focus on material financial risks. By taking these steps, the administration hopes to shift focus back to fostering growth and lending within community banks.
In closing, the Treasury Department under President Trump’s leadership commits to a financial services industry that serves all Americans, including Main Street. The intended reforms are extensive but necessary in ensuring a more balanced and inclusive financial landscape.
