Op-ed: Community Banks Support Local Customers to Strengthen Larger Economy
By: David Coble
Over my 24 years living in Mooresville, I've come to recognize it takes people and businesses with diverse backgrounds, skills, products and services to succeed. From our supportive neighbors to our hardworking local businesses, they all depend on strong community institutions that understand their needs and invest in their success. Community banks are at the heart of this effort, ensuring that small businesses have access to capital, homeowners can secure mortgages, and entrepreneurs can get the financial backing they need to achieve their goals.
As a longtime advocate for economic development here in Mooresville and Iredell County as a whole, I know firsthand that community banks are essential for building up our local economy. Unlike much larger banks, which often focus on urban centers and high-margin investments, community banks are deeply rooted in the places they serve. Their employees are members of our Rotary Clubs, PTAs and serve in our Chambers of Commerce. They understand the unique financial challenges of their clientele, from small business owners and first-time entrepreneurs to working families who count on resources from their local bank to get by. However, to continue serving our communities effectively, these banks need access to modern, diverse funding sources that allow them to remain competitive in today’s financial climate.
The tools of banking are evolving rapidly. To meet customer demand, community banks must offer innovative solutions like digital banking, faster loan approvals, and customized financial services. But to do this, they need stable access to capital. Traditionally, community banks have relied on local deposits, but in an increasingly competitive market, they need additional funding channels from external financial partnerships and third-party institutions like Raisin. These diverse funding sources provide the liquidity necessary for banks to lend to small businesses, offer competitive interest rates, and ensure that every member of our community has access to financial services that match their needs.
Unfortunately, federal policies threaten to limit the ability of community banks to access these critical funding streams. Without modern financial tools at their disposal, many local banks will struggle to meet customer demands, leaving small businesses and individuals with fewer options for securing loans and other financial services. This would be a devastating setback for local economies like ours, where small, family-owned businesses depend on community banking relationships to maintain and grow their operations.
Our policymakers must take action to ensure that community banks can continue their essential work. The Trump administration and Congress must work together to support policies that allow local banks to access diverse funding sources, remain competitive with larger financial institutions, and continue to uplift the small businesses that drive our economy forward. Without this support, the financial institutions that have become our trusted partners could face unnecessary roadblocks that limit their ability to serve their customers.
At a time when small businesses need every advantage to succeed, we must ensure that community banks have the right tools to keep investing in our neighborhoods. Living in Mooresville, I’ve seen firsthand how invaluable these institutions can be. That’s why I urge our leaders in Washington to stand with community banks, protect their access to necessary capital, and recognize the vital role they play in strengthening our local economies.
David Coble is a former Town Commissioner of Mooresville, North Carolina.
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