U.S. Sen. Sherrod Brown (D-OH) expressed concerns to the Acting Comptroller of the Currency about bank branch closures in low- to moderate-income communities.
The inquiry follows a report from the Federal Reserve on the negative impact of banking deserts in rural, low-income, and minority communities. It also comes after several news outlets reported on bank closures in low-income communities.
“I am concerned about bank branch closures in low- to moderate-income (LMI) communities in Ohio and across the country,” Brown wrote in a letter to Michael Hsu, Acting Comptroller of the Currency. “I hope that your agency will work to prevent branch closures and encourage investment in LMI communities and develop a new approach to bank merger reviews that supports access to traditional financial services and economic prosperity for all.”
Brown, chair of the Senate Committee on Banking, Housing, and Urban Affairs, said branch closures are also related to a broader trend of consolidation and concentration in the banking industry.
“Last year, I sent a letter to you and Federal Reserve Chair Jerome Powell that urged you to review and reconsider your approach to big bank mergers. I hope that we can see real changes to the bank merger process to ensure that all communities have access to banking services. I appreciate the steps you have taken to start the conversation through the recent Bank Merger Symposium, but the OCC and other banking regulators must take concrete actions to revise their bank merger policies,” Brown wrote. “I hope that your agency will work to prevent branch closures and encourage investment in LMI communities and develop a new approach to bank merger reviews that supports access to traditional financial services and economic prosperity for all.”