WASHINGTON, D.C. – U.S. Senator Jerry Moran (R-Kan.) – a member of the Senate Banking Committee – is urging President Obama to fill at least one of the vacant seats on the Federal Reserve Board of Governors with an individual with community bank experience or community bank supervisory experience. Following the resignation notice last week from Federal Reserve Governor Jeremy Stein, Sen. Moran and several of his Banking Committee colleagues sent a letter to the president reiterating the importance of diversity of experience on the seven-member board, which helps set interest rates and banking regulations.

“The responsibilities of the Federal Reserve have grown immensely with the passage of the Dodd–Frank Wall Street Reform and Consumer Protection Act, including revising and issuing dozens of regulations that affect nearly every aspect of large and small entities in the banking industry,” the Senators wrote. “It is critical that the Federal Reserve fully appreciate the rich and variegated nature of our financial system as it engages in transparent and timely rulemaking to promote a thriving, robust, and resilient financial system unencumbered by undue regulatory burdens.

“Nominating an individual with community banking or supervisory experience would ensure that future Federal Reserve actions and regulations are tailored and reflect a nuanced understanding of the regulatory and economic environment faced by community banks, and that the role that these institutions play in their communities and in our financial system is not diminished,” the Senators urged.

Community banks play a critical role in our nation’s economic recovery, serving rural, small town and suburban customers alike. Unfortunately, the regulatory, tax and paperwork requirements stemming from the passage of the Dodd-Frank Act and other legislation impose a disproportionate burden on these banks because they do not have the resources of larger financial institutions and the ability to effectively manage their legal and compliance costs. The expense of over-regulation diminishes the ability of community banks to attract capital and support the credit needs of their customers and local businesses.