Ricketts Introduces the Rural Depositories Revitalization Study Act to Strengthen Rural Banks

WASHINGTON, D.C. - Today, U.S. Senators Pete Ricketts (R-NE) and Reverend Raphael Warnock (D-GA) introduced the Rural Depositories Revitalization Study Act to strengthen rural institutions, protect small-town depositors, and keep local credit flowing. The legislation would also identify burdensome red tape and regulations that prevent the opening and growth of rural banks.

"Nebraskans rely on community banks and credit unions," said Ricketts. "They underwrite farm equipment. They help small businesses and manufacturers get started. They enable Nebraskans to become homeowners by providing first mortgages. Regulations written for big banks should not apply to rural ones. This bill helps make the Good Life possible for all Nebraskans."

"We know rural communities are often overlooked when it comes to investment and access to capital. As a result, rural communities frequently lack the same access to small business and mortgage loans compared to urban and suburban counterparts," said Warnock. "Our bipartisan Rural Depositories Revitalization Study Act will help combat these inequities by identifying key ways to strengthen our nation's rural banks and financial institutions to promote investment in rural communities.

The Rural Depositories Revitalization Study Act would:

1. Direct the Federal Reserve Board of Governors, the Office of the Comptroller of the Currency (OCC), Federal Deposit Insurance Corporation (FDIC), and the National Credit Union Administration (NCUA) to:
   1. Identify methods to improve the growth, capital adequacy, and profitability of depository institutions in the United States that primarily serve rural areas;
   2. Identify Federal statutes or regulations of the Federal banking agencies that limit the establishment of de novo depository institutions in rural areas;
   3. Create a report to Congress with their findings no later than a year after enactment.

BACKGROUND

Rural communities rely on their local institutions to provide them flexible credit. New bank formulation is staggeringly low since 2009. The total number of banks has declined by more than 70% since the 1980s. The Rural Depositories Revitalization Study Act would identify solutions to ensure rural banks can be created and continue to thrive.

Bill text for the Rural Depositories Revitalization Study Act can be found here.