August 11, 2025

Financial institution regulators — including the Federal Deposit Insurance Corporation (FDIC), the National Credit Union Administration (NCUA), the Office of the Comptroller of the Currency (OCC) and the Federal Reserve — are facing significant downsizing. This trend raises critical questions about the safety and soundness of financial oversight and the decisions board members must make in response. Let’s explore the implications of a reduced regulatory workforce, the risks tied to longer intervals between examinations and the potential shifts in spending priorities.

In a market where deposit competition is fierce and industry turmoil has placed an increased emphasis on safety, one of the best ways to proactively reassure your most-valued customers could be joining a reciprocal deposit network.

I hope the readers of this column will excuse the lack of decorum in the title, but in reading and listening to the words of the Federal Reserve Board’s members over the past month, I hear a lot of hedging. And far be it from me to second-guess the respective governors and regional presidents of our central bank. If they were asked individually for their druthers, I suspect they’d prefer an economic, fiscal and geopolitical backdrop that had less drama. Not to mention an inflation track that would get back to its elusive 2% target.

When a financial system can no longer stand on its own, it leans on illusion. That’s what the June 18, 2025, quiet regulatory move was really about. Most people didn’t see it.

When faced with a crisis, community banks step up. Our communities rally around us because, as their pillars, community bank leaders take the initiative to oversee recovery efforts. In many cases, we become the disaster recovery center for those in need.

As we recently celebrated Independence Day, I can’t help but equate that sense of freedom with what we do as community bankers. We are champions of our local communities, ensuring our customers have access to financial services that afford opportunities for individual freedoms.

ICBC Preferred Providers are selected by bankers just like you, so give them special consideration when considering their proposals for your bank! To learn more about ICBC’s Preferred Providers, contact the ICBC at (303) 832-2000. Please note: ICBC endorses the listed companies but not all products offered by the company. Contact: Scott Wintenburg | swintenburg@bbwest.com