‘92 POLITICAL PERSPECTIVE: How Business Views the Election.

Name: Jane J. Netherton

Company: International City Bank in Long Beach

Position: Chief executive

Registration: Republican

Q. Who are you going to vote for?

A. Undecided.

Q. Why?

A. To date, the candidates have not provided clear answers, or even substantive discussions, on the important issues. They have listed and described the problems facing our country, but they have not provided detailed solutions for me to consider. With such a high turnover expected in Congress, this election provides a unique opportunity for the winner of the presidential race to effectively address these problems, including the policies generated by a Congress that has appeared to be entirely anti-business.

Q. What are the main issues for your business?

A. The top three issues for the banking industry are: (1) over-regulation; (2) over-regulation, and (3) over-regulation. The banking industry is drowning in duplicative and unnecessary regulatory requirements that have nothing to do with safety and soundness of the industry. Most were adopted by Congress in a piecemeal fashion, but never with an attempt to evaluate the impact on the big picture or even the impact on existing rules. The American Bankers Assn. conducted a study on the costs of these regulations. Last year, $10 billion was spent by the banking industry to comply with regulations--that was 57% of the industry’s profits. Clearly then, the regulatory requirements are excessive, and naturally it has affected our ability to make loans to individuals and small business.

Q. What needs to be done to right the economy?

A. Policies established to fuel long-term job creation. Eighty-five percent of job creation comes from small businesses, and community banks are the primary lenders to small businesses. I would first suggest that banks are provided some regulatory relief so that we can get back to the business of lending. Similarly, business in general is suffering from over-regulation. Clearly some regulation is valuable and necessary. But those requirements are becoming excessive, slowing down economic activity--a high price for consumers to pay. Finally, policies that encourage personal savings and capital formation are critical. Without those components, there cannot be a long-term effective turn in the economy.