As the founder and CEO of a 30-year-old community bank, I’ve seen the regulatory burden grow on community banks out of all proportion, to the point of takeover of our business decisions.

Our business model is simple, uncomplicated, and direct.  Yet we have to comply with regulations for much larger, more complex banks.  Further, the regulations are nebulous and arbitrary, allowing examiners to interpret the rules any way they want.

Finally, we are controlled by a much higher requirement than any regulator can impose: we brought our own capital to start the bank, and we are beholden to every person who owns a part of the bank, and to every depositor who trusts our bank, to act in a safe, sound, and honest fashion.

Finally, community banks are the last bastion of free-market capitalism, of true individual empowerment to choose without coercion.  We empower local businesses and individuals to attain financial success and independence.  That individualism rankles the government-employee mentality.  And we independent banks become the target of central-control mentality that inhabits many federal employees.

There is so much more at stake here than regulatory excess, but that is the cause of the decline of independent banks in our nation and the decline of free market capitalism.  Where is John Galt?

Jay Davidson is founder and CEO of a commercial bank. He is a student of the Austrian School of Economics and a dedicated capitalist. He believes there is a direct connection between individual right and responsibility, our Constitution, capitalism, and the intent of our Creator.

Image: pasja1000 via Pixabay, Pixabay License.