Texas Regional Bank (TRB) recently joined the Independent Bankers of Texas (IBAT) and community banks from across the state in Washington, D.C. for the 32nd Annual Congressional Visit fly-in, an annual advocacy effort that brings the voice of community banking to the Texas Congressional delegation.
Tracy Harris, Emily Kirchner, Skip Colvin, and Jesse Ozuna were among more than 170 Texas bankers who participated in 30 meetings on Capitol Hill, engaging members of the U.S. Senate and House of Representatives to discuss issues affecting community lending, regulatory policy, and economic development.
Discussions focused on several policy priorities shaping the future of community banking.
1. Digital Assets and Innovation
Community bankers discussed how evolving financial technology and digital asset markets could impact community banking and local economies.
Key points included:
- Deposits in Texas community banks support lending activity and economic production representing about 4% of Texas GDP and 1 out of every 10 jobs in the state.
- As funds move from community banks into offshore stablecoins and other digital assets, lending capacity in local communities could decline.
- Policymakers were encouraged to adopt a “same risk, same activity, same regulation” framework for digital asset platforms.
- Bankers also urged Congress to close yield-producing loopholes that allow exchanges to offer deposit-like returns without bank-level supervision.
2. Regulatory Fairness and Right-Sizing
Community bank leaders also discussed the need for regulatory frameworks that better reflect the size and risk profile of local institutions.
Topics included:
- Community banks are often supervised under standards designed for much larger financial institutions.
- Right-sizing regulations would give community banks room to operate responsibly while continuing to support local economies.
- Bankers encouraged support of H.R. 6955, the Main Street Capital Access Act, which would:
- Expand exam cycles for well-managed banks
- Allow limited-scope examinations
- Streamline the process for new bank charters
- Direct regulators to apply supervision based on actual risk rather than asset size
3. Deposit Insurance Reform
Deposit insurance policy was another key focus of the meetings.
- Community bankers encouraged lawmakers to ensure any changes are data-driven and equitable for community banks, including:
- Avoiding arbitrary increases that would raise costs for community banks
- Ensuring community banks are not responsible for systemic-risk failures tied to larger institutions
- Modernizing FDIC insurance coverage by indexing the $250,000 limit to inflation
- Permanently exempting community banks under $10 billion in assets from systemic-risk related special assessments
Engaging Policymakers on Community Banking
The IBAT Congressional Visit allows community bankers to engage directly with federal policymakers and share how legislative and regulatory decisions affect lending, economic development, and financial access in communities across Texas.
By participating alongside banks from across the state, TRB leaders contributed to ongoing conversations focused on strengthening community banking and supporting local economic growth.
About TRB Economic Development & Public Funds
TRB Economic Development & Public Funds is a specialized team within Texas Regional Bank focused on supporting communities, governments, and public-sector entities across Texas. The group works at the intersection of public policy, infrastructure, and finance, partnering with local, state, and regional stakeholders to advance economic development priorities and manage public funds.
Backed by the strength of Texas Regional Bank’s diversified financial services platform, TRB’s Economic Development & Public Funds team brings experience across both the public and private sectors, providing tailored solutions that support long-term community growth and fiscal stewardship.
For more information about TRB Eco. Dev. & Public Funds, visit trb.bank/public-sector.
