Traditional banking has three distinct components:

    1. Capital
    2. Deposits
    3. Loans

Capital
The pillars of Traditional Banking (Deposits & Loans) rest upon the foundation of Capital. All banks must have access to Capital, which is leveraged with deposits and then prudently converted into loans that generate jobs and economic growth. Friends of Traditional Banking support policies that facilitate the flow of capital into our banking system and which allow market driven returns to be earned on capital that is placed at risk. We oppose any policies that make it more difficult to attract capital into this critical process.

Deposits
Once Capital is invested, it is leveraged through the collection of deposits that represent the savings or liquid reserves of individuals and businesses in the community. The collection of these deposits is facilitated by the fact that they are insured up to $250,000 by the full faith and credit of the U.S. Government through the Federal Deposit Insurance Corporation (FDIC). This guarantee lowers the required return and results in an appropriate level of regulation. Depositors have ready access to their deposits through a number of tools (i.e. checks, debit cards, internet, and other electronic transfers, etc.) Friends of Traditional Banking supports policies that promote the ability to attract deposits and oppose policies that unduly increase the cost (regulatory or financial) of those deposits, or in any way disrupts an individual's or business' access to these deposits.

Loans
The combination of Capital and FDIC insured Deposits constitutes the basis for the amount of money that can be disbursed in Loans. Prudent loans to individuals and businesses drive healthy economic growth. Friends of Traditional Banking supports policies that facilitate the market based pricing and granting of loans which accurately reflects risk. We oppose policies that increase the cost of lending, inject political, non-market based criteria into the lending process, or arbitrarily restrict or distort the allocation of credit in the economy.

Our focus is on achieving policies that promote and preserve Traditional Banking, recognizing that there are many types of FDIC insured charters, and varying corporate structures of all sizes, engaged in this critical process.