Legislative Push to Shift Regulatory Focus Toward Domestic Banking

4,131 community banks operated in the U.S. as of Q4 2024, accounting for more than 90% of all FDIC-insured banking institutions by count

New bank formations fell from roughly 130 per year (2000–2009) to approximately 6 per year after 2010 — a drop of more than 95%

Community banks hold roughly 11% of total U.S. banking assets but originate an estimated 37%–60% of small business loans and 63%–80% of agricultural loans

H.R. 6955 would raise the small bank holding company asset threshold from $3 billion to $25 billion and lift the Community Bank Leverage Ratio eligibility cap from $10 billion to $15 billion

The smallest community banks spend 11%–15.5% of their payroll on compliance tasks, compared to 6%–10% at larger community banks, according to a decade of CSBS survey data (2015–2024)