Bankers Split on Regulatory Consolidation

But Overwhelming Majority Want to Keep Bank Regulatory Agencies Independent

ARLINGTON, Va., Feb. 25, 2025 /PRNewswire/ -- As the Trump administration reportedly considers consolidating the bank regulators, bankers are split on the issue, according to a new poll by fintech IntraFi.

In a survey of 465 banking executives, 52% said they would favor consolidation of some kind, while the remainder were opposed. Those that supported consolidation said there are simply too many bank supervisory agencies. Those opposed said the number of regulators allows for more bank choice and were concerned any legislation to merge regulators could end up with more burdens placed on banks.

"Bankers are clearly divided not just on the question of consolidation but what kind of regulatory restructuring would be best," said Mark Jacobsen, Cofounder and CEO of IntraFi. "But there is widespread agreement when it comes to agency independence."

Ninety-three percent of respondents said they support keeping the banking regulators independent from the administration.

There is also more agreement when it comes to bankers' views on crypto. Nearly two-thirds of respondents are worried that passing a bill to regulate stablecoins could encourage consumers to pull funds from banks. If financial institutions lose funding, it could endanger credit availability.

Sixty-two percent of bankers also said they worry the crypto industry will have an outsized role in shaping the administration's crypto policy given that industry's support for President Trump.

Bank executives are also worried about the impact of a number of newly finalized rules by the Consumer Financial Protection Board (CFPB). When asked which rule they would choose to be amended or repealed, 58% percent of respondents said their top priority was Section 1071, which mandates new data collection standards for small business loans. Twenty-two percent were more focused on Section 1033, the so-called open banking rule, with another 27% making this rule their second priority.

Other Highlights

• Funding Costs declined at 58% of banks over the last 12 months according to bank executives, a 34-percentage point shift from last quarter.
• Deposit Competition remained tight. Around 83% of respondents said deposit demand remained at existing levels or became more competitive.
• Loan Demand increased at 44% of banks, the highest percent since the third quarter of 2022.
• Access to Capital is stable with 81% reporting no change.

IntraFi's Q4 2024 Bank Executive Business Outlook Survey garnered responses from CEOs, presidents, and CFOs at 465 unique banks across the country. Download the full report. 

About IntraFi

A trusted partner chosen by more than 3,000 financial services companies, we define success not by the volume of transactions we enable, but by the quality of relationships we form. Our network, established over 20 years ago, connects institutions of all sizes to help participants build stronger relationships with their customers, fund more loans, seamlessly manage their liquidity needs, and earn fee income. The network brings scale, giving each participant access to tens of billions of dollars in funding, the highest per-depositor and per-bank capacity, and the peace of mind of being able to make large-dollar placements.

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SOURCE IntraFi