Independent Banker - February 2024 - 43

consumer choice and access to
popular card benefits.
As constituents and community influencers,
you are uniquely positioned to explain
the real-world impact of these legislative
issues on your bank, your customers and
your community.
ICBA opposes the Credit Card
Competition Act (S. 1838 and
H.R. 3881) (the " Durbin-Marshall
Amendment " ), which would expand
interchange restrictions by creating
new credit card routing mandates.
This would end up forcing all banks to
subsidize costly system-wide changes
that would put customer data at risk.
Randy Feenstra (R-Iowa) and Wiley
Nickel (D-N.C.) in the House. The
bill would create a tax exclusion for
interest income on farm real estate
and rural mortgage loans, allowing
community banks to lower loan
rates and more efficiently serve these
borrowers. It would also provide relief
for loans secured by agricultural and
aquaculture real estate or by rural
single-family homes that are the
borrower's principal residence and
below the value of $750,000 in towns
with populations of less than 2,500.
The ACRE Act, the successor to the
Enhancing Credit Opportunities for
Rural America (ECORA) Act of the
previous Congress, would promote
prosperity in rural economies,
especially among young, beginning
and small farmers and ranchers who
are trying to obtain loans in this
higher interest rate environment.
Closing the ILC loophole
The separation of banking and
commerce is essential to the safety
and soundness of the financial system
and must be protected. This core
tenet of the nation's financial system
prevents concerns about impartial
allocation of credit, conflicts of
interest, a dangerous concentration
of commercial economic power,
and the extension of the federal
safety net to commercial interests.
That's why ICBA will continue to
push for the closure of the industrial
loan company (ILC) loophole, which
large technology companies like
Rakuten have tried to exploit. ICBA
wants to close the ILC loophole to
ensure that large companies like
Amazon, Meta and Google can't avoid
the legal prohibitions, oversight and
restrictions on commercial activities
under the Bank Holding Company Act
that apply to traditional banks.
Through this loophole, these
companies could enjoy the privileges
of a bank without the same
accountability. Allowing entities that
engage in diverse, non-financial,
commercial activities to own a lightly
regulated bank poses a systemic
threat to the financial system, and it
must not be allowed.
Opposing new
interchange restrictions
Community banks serve consumers of
all economic levels with transparent
and sustainable payment card
programs, ensuring convenience
and access to the digital economy.
Interchange income helps cover the
cost of these programs, including
popular rewards programs. Without
it, rewards and credit programs would
have to be discontinued, reducing
Add your community bank's
voice to our advocacy agenda
There are many more issues ICBA's
advocacy team will address, including
CFPB's 1071 rule, opposing bad
central bank digital currency (CBDC)
and nonbank stablecoin proposals,
and supporting a robust Farm Bill.
While ICBA's staff and leadership will
be focused on advocating for these
issues, we need community bankers
like you to share your stories and
engage with policymakers.
As constituents and community
influencers, you are uniquely
positioned to explain the real-world
impact of these legislative issues
on your bank, your customers and
your community.
The ICBA Action Center is a great
place to start. It provides sample
letters you can send to congress.
Importantly, you can personalize the
letters to maximize the impact. Or
you can reach out to your member of
congress and schedule a meeting with
them or one of their staff.
Whatever approach you choose
to take, don't sit on the sidelines.
Achieving our legislative goals in 2024
requires all hands on deck!
Paul Merski (paul.merski@icba.
org) is ICBA group executive
vice president, congressional
relations and strategy.
independentbanker.org // 43
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Independent Banker - February 2024

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