Mainebiz

W W W. M A I N E B I Z . B I Z 15 JA N UA R Y 1 3 , 2 0 2 5 F O C U S E C O N O M I C F O R E C A S T "Banks have been under siege in recent years by a federal regulatory tsunami," says Jim Roche, presi- dent of the Maine Bankers Association, a statewide trade group based in Westbrook. On top of that, he notes that banks face increas- ing competition from credit unions that enjoy unfair advantages, such as an exemption from federal taxes and regulations like the Community Reinvestment Act. "Unless the playing field is leveled between banks, credit unions and the largely unregulated financial technology industry, he says, "we can, unfortunately, expect more banks to look for economies of scale through combinations." He is nevertheless bullish on the sector in Maine and nationwide. "Like most businesses, banks are hope- ful about the year ahead," he says. "Interest rates have declined somewhat, the economy seems to be perform- ing well, and the new administration in Washington is expected to have a lighter regulatory touch than the near-weekly regulatory barrage that has been the norm over the past four years." Roche also expects continued innovation by Maine banks. "Maine banks have invested heavily, and will continue to do so, in technology that both protects customers from fraud while enabling them to bank from anywhere — their phone, laptop, a bank branch, an ATM — at any time," he says. "is is particularly important in Maine with its somewhat bifurcated population of older consumers, some of whom may not be tech-savvy, and younger consumers who may never have stepped into a bank branch." How the wider economy will fare depends on the new administration's trade and tariff policies, Roche says. "High tariffs against Canadian and Mexican products will likely mean higher prices for Mainers," he warns. "Maine's economy, like the rest of the United States, is closely intertwined with the economies of our neighbors to the north and south. An intense trade dispute will not be good for consumers." MA IN EBI Z .BI Z /BLOY25 SUBMIT A NOMINATION BY FEBRUARY 23! If you know a leader that falls under one of these categories, please nominate them: CEO of the Year Entrepreneur of the Year Volunteer of the Year Industry Leader of the Year Innovator of the Year Nonprofit Leader of the Year Sustainability Leader of the Year Breaking Barriers Award Lifetime Achievement Award Nominate a Maine leader for outstanding performance! SP ONSORED BY N IN E AWA R D CATEG OR IE S P H O T O / J I M N E U G E R Banks have been under siege in recent years by a federal regulatory tsunami. — Jim Roche Maine Bankers Association C O N T I N U E D O N F O L L OW I N G PA G E » Maine Bankers Association President Jim Roche

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