This is an op/ed by U.S. Rep. Tim Moore of Kings Mountain.
The growing weight of one-size-fits-all mandates from bureaucrats in Washington, D.C., has stifled the ability of community banks in North Carolina to serve their communities effectively. In an era of rising costs, it’s more important than ever to right-size regulatory overreach so our financial institutions can better serve American families, workers, and small businesses across the country.
As a lifelong resident of a rural town, I’ve seen firsthand the vital role community banks play in supporting local communities. These institutions aren’t just places to deposit a check or take out loans—they are trusted partners for small businesses and families working to build a better and more secure future.
Community banks are uniquely equipped to understand the needs of their neighbors. They understand the towns they serve and see up close the challenges faced by local entrepreneurs. However, excessive regulatory burdens make it increasingly difficult for these institutions to operate efficiently.
The one-size-fits-all approach of current federal regulations has disproportionately impacted community banks, leading to increased compliance costs that are limiting their capacity to lend. In fact, the problem has become so severe that one town in my district, Spindale, doesn’t have a single bank. Residents must drive miles just to access basic financial services.
Congress has a responsibility to fix what it broke. That’s why the Financial Services Committee is working through a series of legislation focused on restoring common sense to banking regulation. As part of this effort, I introduced H.R. 4478, the Tailored Regulatory Updates for Supervisory Testing (TRUST) Act of 2025, which passed the Committee with unanimous support from both Republicans and Democrats. This bipartisan bill would right-size the regulatory framework so that community banks can focus on serving their customers, not cutting through endless red tape.
The TRUST Act allows well-managed community banks with up to $6 billion in assets to qualify for an 18-month examination cycle, instead of the regular 12-month cycle. Instead of constantly preparing for intrusive examinations from federal banking regulators like the Federal Reserve, these banks will be able to redirect their time and resources toward customer service and lending. Well-managed small banks should not be subject to the same degree of regulation as larger, more complex banks.
By easing unnecessary compliance burdens, the TRUST Act will give community banks the breathing room they need to adapt to a rapidly changing economic landscape, offering new products and leveraging technology. A regulatory environment that encourages innovation will ensure our financial institutions remain competitive and relevant in today’s market.
With the TRUST Act, we can create a future where community banks are not just surviving but thriving. This is the next step toward making community banking great again. I’m hopeful the House and Senate will consider my bill swiftly so it can be signed into law and restore strength to community banking in North Carolina and across the United States.
Tim Moore represents the 14th Congressional District of North Carolina, including Cleveland, Gaston, Burke, and Rutherford Counties, and parts of Mecklenburg and Polk Counties. The former N.C. House Speaker is a member of the House Financial Services Committee. The TRUST Act is cosponsored by a Democratic congressman, Ritchie Torres, who serves a New York City district.
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