By Dan Conti/KPR
Frankfort, KY – Kentucky's banks face challenges and an uncertain future despite a history of strength and stability. Executive vice president of the Kentucky Bankers Association Debra Stamper the banks are committed to their communities but they're now dealing with new and complex federal regulations. She says those regulations restrict sources of income, like overdraft and interchange fees.
"We're seeing increased capital requirements with no explanation given and that's at a time when capital could be better utilized in the community. We're seeing limitations on lending, increased underwriting and charge off requirements despite bank management assurances that they've got systems in place," Stamper says.
Stamper says it's ironic that those restrictions are coming at a time when banks are being told to get to know their customers better. She says now local bankers are getting their hands slapped for making loans to customers they know are able to repay them. Stamper testified in Frankfort this morning before the interim joint committee on banking and insurance.