Small banks are airing their grievances over new regulation that they say costs too much and takes away from customer service. House Financial Services Committee members heard from small banks at a field hearing, the focus of which was to look at how new regulations are impacting financial institutions. “Illinois is home to some of the finest financial institutions in the country,” said U.S. Rep. Judy Biggert (R-Hinsdale), who sits on the committee. “But lenders small and large are paralyzed by hundreds of unattainable and inconsistent financial regulations included in the far-reaching Dodd-Frank Act.”
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James Renn, president of Lisle Savings Bank, testified that the regulations created after the failure of banks across the country are more for large banks rather than small, hometown banks. He sees the regulations as a threat that could force some banks to close their doors. Renn also talked of the troubles of trying to find a compliance officer familiar with new regulations and costs. He says costs related to the regulation have risen from $80,000 in 2008 to $140,000 in 2011.