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(WASHINGTON, D.C.) – Today, U.S. Senators Tom Coburn (R-OK) and Mazie Hirono (D-HI) introduced S.2852, the State Regulatory Representation Clarification Act of 2014 which would clarify Congressional intent that the Board of the Federal Deposit Insurance Corporation (FDIC) should include at least one individual who has worked as a state bank regulator.

“Washington does not always know best, and it is important that Congress reaffirms and clarifies its intent that the FDIC will benefit from the view of those with firsthand experience regulating the banking industry at the state level,” Dr. Coburn said. “Our financial regulatory framework needs multiple perspectives, and the state bank regulatory perspective is a critical ingredient in that mix.”

“Hawaii families and businesses face unique circumstances and rely on local banks and credit unions that understand those circumstances to help them buy new homes or get a loan to start a new business,” said Hirono. "In fact, seven of the twelve banks in Hawaii are state chartered, accounting for 84 percent of the small business loans made in the state. It is important that people who understand the  perspective of community banks and how they serve different communities are represented on the FDIC board.”

We know the consequences of an assumption that all good ideas come from Washington. State banking regulators bring an essential point of view to local credit markets and the role of banks in communities throughout the country.