Recent conferences highlight banker optimism under Trump

Editor's Note: This column was included in the Oct. 23 Pulse enewsletter.Three conferences I attended in recent weeks signal why community banker optimism has surged in the nine months since President Donald Trump was inaugurated..Treasury Secretary Scott Bessent, speaking in unusually strong terms during the Oct. 9 Federal Reserve Community Banking Conference, said new laws over the past 15 years have harmed community banks. He cited the 2010 Dodd-Frank Act’s failure to end the concept of “too big to fail.” “The post-crisis framework has left a trail of destruction in its wake by reinforcing the larger economic dynamics that have hollowed out the American heartland while enriching the centers in coastal cities,” Bessent said. Speaking Oct. 20 during the American Bankers Association annual convention in North Carolina, Comptroller of the Currency Jonathan Gould promised to correct what he sees as regulatory overreach since the 2008 financial crisis — especially for community banks.“One of the most important things I can do is reset that risk tolerance and take a more thoughtful approach, rather than a merely reactionary approach, to regulation and supervision,” Gould said. Their comments resonate with community bankers, a significant number of whom felt squeezed by the regulatory environment under the administration of former President Joe Biden. Community banker confidence surged to a record high in the third quarter of this year, according to the Conference of State Bank Supervisors. Several speakers during the Bank Holding Company Association fall seminar earlier this month predicted the Trump administration’s softened stance on approving deals will fuel a rise in M&A over the next three years, allowing more banks to achieve scale. The Trump administration’s embrace of regulatory tailoring is endearing itself to community bankers — so much so that it may be outweighing concerns over the potential impact of the GENIUS Act and President Trump’s support of digital currencies, which some experts say could lead to an exodus of deposits from banks.Another example of Trump’s enduring support among community bankers is for his administration’s use of tariffs. Despite Creighton’s Rural Mainstreet Index falling to a five-year low this month, and agricultural exports to China falling 85.7 percent from last year, most community bank CEOs in rural areas of the Midwest support Trump’s approach to the trade conflict.As long as the Trump administration continues to support regulatory tailoring and shows empathy for bankers who felt under attack by Dodd-Frank and the Biden administration, his support from community bankers will remain strong.