WASHINGTON, D.C – April 17th 2012 – Representative Andy “Garland” Barr (R-KY) today questioned the one-size-fits-all approach to the regulation of financial institutions and the banking industry. As a member of the Financial Services Committee, Barr raised the important issue of regulation in place today.

“Community and regional bankers across central and eastern Kentucky consistently tell me that over-regulation has effectively prohibited reputational, relationship, and character-based lending, which in turn deprives entrepreneurs and small businesses the ability to access the capital needed to create much-needed jobs.” said Cong. Barr.

Under President Obama, regulators have treated all banks the same and that regulation has in turn crippled small banks and lenders. Where lending used to be based more on character and reputation in the community, regulation has now turned into a more rigid and regulated process.

What has happened as a result of regulation at the hands of the Obama administration is stunted economic growth, job creation, and the middle class being able to grow businesses, farming operations, and homes.

Congressman Barr further said that, “At a time when we should be supporting job-creators who are putting Kentuckians back to work, the harmful effects of over-regulation from Washington continue to ripple right out into businesses on Main Street seeking credit to expand, farmers seeking agricultural loans, and families working to purchase a home.”

Banks such at Forcht Bank in Lexington, Farmers Bank in Frankfort, First Southern Bank in Richmond, and other banks are having to deal with the expanded regulation.

For more information, visit Congressman Barr’s Press Release