Minority Bank Execs Say Regulation Their Next Existential Threat

The dwindling ranks of minority-owned banks have hung on through a global financial crisis, and now the coronavirus’s disparate impact on the communities they serve.

The next threat they see, one they fear could shutter more of them, is regulators.

Rebeca Romero Rainey, president and CEO of the Independent Community Bankers of America, says those institutions may not survive the pandemic without “regulatory patience.” Examiners and auditors need to keep in mind that these bankers’ decisions on how who they lend to are different than at other banks because their missions are different, she said.

“Flexibility will be needed and ...