Bank Executives Remain Split on Consolidating Bank Regulators

Amid reports of potential plans to consolidate bank regulators, bankers remain divided on the issue, with 52% in favor of some form of consolidation and 48% opposed, according to IntraFi.

Research by the fintech found that supporters of consolidation believe there are too many bank supervisory agencies. Meanwhile, those opposed claimed that multiple regulators provide greater bank choice and worry that merging regulators could lead to increased burdens on banks.

The research follows reports that President Trump’s administration is exploring ways to consolidate banking regulators.

Plans under review include potentially merging the Federal Deposit Insurance Corporation (FDIC) into the Treasury Department and combining the FDIC’s regulatory role with the Office of the Comptroller of the Currency under Treasury.

While bankers are divided on consolidation, the report found broad consensus on agency independence, with 93% supporting keeping banking regulators separate from the administration.

Bankers also show more agreement on crypto, with nearly two-thirds worried that regulating stablecoins could prompt consumers to withdraw funds from banks, potentially threatening credit availability.

In addition, 62% reported that they are concerned that the crypto industry could have undue influence on the administration’s crypto policy, given its support for President Trump.

The report also revealed concerns among bank executives about the impact of several newly finalized rules from the Consumer Financial Protection Bureau (CFPB).

When asked which rule they would most like to see amended or repealed, 58% of respondents said Section 1071, which imposes new data collection requirements for small business loans, was a top priority.

Meanwhile, 22% of respondents prioritized Section 1033, which grants consumers the right to access and share their financial data, with an additional 27% naming it as their second priority.