Hinds Today

Senator Cindy Hyde-Smith has introduced a bill aimed at boosting community banking and addressing the decline in banking options for many Mississippians. The Promoting Access to Capital in Underbanked Communities Act (S.3937) seeks to encourage the formation of new banks in underserved and rural areas by easing federal regulatory restrictions.

Hyde-Smith emphasized the importance of having more community banks that cater to the needs of everyday Mississippians, stating, "We need more community banks in our towns that understand the needs of everyday Mississippians."

The legislation includes provisions for a three-year phase-in period to allow newly-chartered banks to meet less stringent capital requirements as they adapt to the needs of the communities they serve. Hyde-Smith's initiative comes in response to the significant decline in banking institutions in Mississippi, with the state losing more than 35 state-chartered banks, mostly in underserved areas, over the past 15 years.

Gordon Fellows, President and CEO of the Mississippi Bankers Association, commended the bill, emphasizing the importance of local banks in driving economic success and expressing support for the legislation. Fellows stated, "Senator Hyde-Smith’s new bill would encourage new bank formations in rural communities by making important temporary regulatory adjustments that can help new rural banks establish themselves."

Rob Nichols, President and CEO of the American Bankers Association, also praised Hyde-Smith's efforts, highlighting the potential of the legislation to expand banking access for individuals and small- and medium-sized businesses across the country. Nichols stated, "We applaud Sen. Hyde-Smith for introducing this important legislation to promote new bank formation in rural and underserved areas."

The bill has garnered support from organizations such as the Mississippi Bankers Association and the American Bankers Association, recognizing the positive impact it could have on rural communities and underserved areas. A companion measure introduced in the House of Representatives has also received endorsements from key banking associations.

Hyde-Smith's initiative aims to address the challenges faced by rural communities in accessing banking services and to foster economic growth and investment opportunities in underserved areas.