"Yesterday, I had the opportunity to visit with Community Guarantee Savings Bank up in Plymouth, New Hampshire.
"Community Guarantee was recently sold to the Bank of New Hampshire, a victim of Dodd-Frank, the draconian gift from Washington that has resulted in the demise of so many community banks. The demise stems from two primary factors.
"There is the burdensome regulatory regime placed on banks, big and small alike. Quoting from the Harvard report, The State and Fate of Community Banking, '… The cost of regulatory compliance as a share of operating expenses is two-and-a-half times greater for small banks than for large banks.'
"However, as if the added regulatory burden were not enough, there is always Washington’s predatory lending legal risk. Rather than let local bankers lend money to a community that they know and can evaluate from a risk perspective, Washington has given community banks one-size-fits-all lending requirements. After all, Washington must know better than the local lending officer at the community bank whether to lend to the local manufacturing company seeking to expand overseas or the local retailer who wants to build inventory for the Christmas season. Not!
"The current system is rigged against local banking. If community banks lend according to Washington’s formula, they don’t have the predatory lending risk. If, however, they make a good banking decision that benefits the bank and the local community but is outside of Washington’s “box,” they risk predatory lending liability. Why take the risk? Better to deny the loan, which in the past they might have approved. Washington, once again, thinks they can manage through centralized control.
"Dodd-Frank is not good for community banks. Michael Long started Community Guarantee Savings Bank in 1988. His employees, some of whom have been there from the beginning, will manage because they are hardy granite staters. Some will stay on with the Bank of New Hampshire, a regional bank according to those who measure such things. Others will have to find a way to make due in an economy struggling to find its feet.
"New Hampshire can do better. As your governor, I will fight for local businesses and tell Washington we don’t need their 'help.' I hope you will support me. Visit FrankEdelblut . com and help me support New Hampshire businesses from Washington’s 'we know better' attitude."
Source: Candidate's Website 2016