Independent Banker - April 2022 - 40

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PORTFOLIO CHECKS & BALANCES
Stop the Durbin
Amendment expansion
Conceived as a regulatory policy to control merchant debit card
interchange fees, the Durbin Amendment hasn't benefited consumers or
community banks as originally intended. ICBA and other trade partners
join the push for Congress to gain awareness and take action against the
harmful financial effects of Reg II.
By Deborah Matthews Phillips, ICBA
their savings on to customers. Not
surprisingly, this market intervention
hasn't worked out as intended.
Researchers at the University of
Chicago examined whether merchants
passed savings to consumers in
the form of lower prices and better
services, and they concluded that
consumers ended up worse off than
before. Merchants have retained most
of the savings for themselves, with
the lion's share accruing to the largest
U.S. retailers.
ith the Federal Reserve Board
proposing to reopen Durbin
Amendment regulations governing
debit card interchange and merchants
pushing to extend price controls to
the credit card market, interchange
promises to be a hot-button issue
in 2022.
As the debate proceeds, ICBA
is reminding policymakers that
the Durbin Amendment has
W
distorted the debit card and
consumer checking markets to the
detriment of community banks and
consumers nationwide.
Customers worse off
The Durbin Amendment imposed
artificial price controls on the
interchange fees merchants pay to
use debit card networks, with the
idea that merchants would pass
Meanwhile, those large merchants
have not passed on any savings
to consumers to date. The result
of the Durbin Amendment hasn't
been a reduction in consumer
prices. It has been a wealth
transfer from community financial
institutions to " big box " and large
e-commerce retailers.
America's small businesses have
also been harmed. According to
research from the Federal Reserve
Bank of Richmond, merchants
who specialize in small-ticket
38 Q ICBA Independent Banker Q April 2022

Independent Banker - April 2022

Table of Contents for the Digital Edition of Independent Banker - April 2022

Table of Contents
Independent Banker - April 2022 - Intro
Independent Banker - April 2022 - Cover1
Independent Banker - April 2022 - Cover2
Independent Banker - April 2022 - Table of Contents
Independent Banker - April 2022 - 2
Independent Banker - April 2022 - 3
Independent Banker - April 2022 - 4
Independent Banker - April 2022 - 5
Independent Banker - April 2022 - 6
Independent Banker - April 2022 - 7
Independent Banker - April 2022 - 8
Independent Banker - April 2022 - 9
Independent Banker - April 2022 - 10
Independent Banker - April 2022 - 11
Independent Banker - April 2022 - 12
Independent Banker - April 2022 - 13
Independent Banker - April 2022 - 14
Independent Banker - April 2022 - 15
Independent Banker - April 2022 - 16
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Independent Banker - April 2022 - 18
Independent Banker - April 2022 - 19
Independent Banker - April 2022 - 20
Independent Banker - April 2022 - 21
Independent Banker - April 2022 - 22
Independent Banker - April 2022 - 23
Independent Banker - April 2022 - 24
Independent Banker - April 2022 - 25
Independent Banker - April 2022 - 26
Independent Banker - April 2022 - 27
Independent Banker - April 2022 - 28
Independent Banker - April 2022 - 29
Independent Banker - April 2022 - 30
Independent Banker - April 2022 - 31
Independent Banker - April 2022 - 32
Independent Banker - April 2022 - 33
Independent Banker - April 2022 - 34
Independent Banker - April 2022 - 35
Independent Banker - April 2022 - 36
Independent Banker - April 2022 - 37
Independent Banker - April 2022 - 38
Independent Banker - April 2022 - 39
Independent Banker - April 2022 - 40
Independent Banker - April 2022 - 41
Independent Banker - April 2022 - 42
Independent Banker - April 2022 - 43
Independent Banker - April 2022 - 44
Independent Banker - April 2022 - 45
Independent Banker - April 2022 - 46
Independent Banker - April 2022 - 47
Independent Banker - April 2022 - 48
Independent Banker - April 2022 - 49
Independent Banker - April 2022 - 50
Independent Banker - April 2022 - 51
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Independent Banker - April 2022 - 53
Independent Banker - April 2022 - 54
Independent Banker - April 2022 - 55
Independent Banker - April 2022 - 56
Independent Banker - April 2022 - 57
Independent Banker - April 2022 - 58
Independent Banker - April 2022 - 59
Independent Banker - April 2022 - 60
Independent Banker - April 2022 - 61
Independent Banker - April 2022 - 62
Independent Banker - April 2022 - 63
Independent Banker - April 2022 - 64
Independent Banker - April 2022 - 65
Independent Banker - April 2022 - 66
Independent Banker - April 2022 - 67
Independent Banker - April 2022 - 68
Independent Banker - April 2022 - 69
Independent Banker - April 2022 - 70
Independent Banker - April 2022 - 71
Independent Banker - April 2022 - 72
Independent Banker - April 2022 - 73
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Independent Banker - April 2022 - 77
Independent Banker - April 2022 - 78
Independent Banker - April 2022 - Cover3
Independent Banker - April 2022 - Cover4
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