Welcome back,

 Delaware ’s congressional delegation took some heat for voting for the interestingly named Economic Growth, Regulatory Relief and Consumer Protection Act.

The left wing of the Democratic party viewed the measure as a return to the lax regulatory landscape of the past.

The view on the ground was different as small banks and credit unions struggled with the paperwork and other restrictions that limited lending.  Even larger financial institutions had to spend heavily on compliance departments that did little to reduce risks.

It is, therefore, no surprise that the legislation had bipartisan support as both community banks and credit unions supported its provisions.

 “This landmark law signed by the president today unravels many of the suffocating regulatory burdens our nation’s community banks face and puts community banks in a much better position to unleash their full economic potential to the benefit of their customers and communities,”  said Independent Community Bankers Association  CEO Rebeca Romero Rainey (no relation) said.

Whether the legislation will slow down the consolidation of financial institutions remains to be seen. Community bankers continue to seek regulatory reforms that can provide a more level playing field.

The challenges of technology in a world where many live on their mobile devices remain formidable, although some smaller institutions have proved to be remarkably adept.

Wilmington-based WSFS was able to acquire banks by being big enough to absorb compliance costs.

The fear is that the irresponsible lending that sunk the old  Wilmington Trust will return. It will be up to bank regulators to remain tough and not rely on regulatory paperwork to keep the system sound.

Here’s hoping you enjoyed the three-day weekend and took a moment to remember those who allowed us to enjoy this time – Doug Rainey, Editor.