Ted Millich said:regulators will review … loans to determine their "soundness" … That itself could put fairly severe lending restrictions on the new entity.

Common Good Banks are not intended to make unsound loans. Regulatory oversight is in line with the interests of the bank, the community, and the individual depositors. We WANT the bank to be restricted to making sound loans. The essential difference in Common Good Banks is that community members can work together to decide what the community needs and to design a viable, financially sustainable plan for addressing those needs — knowing that the bank will give high priority to funding any viable plan that is in line with the community's priorities. Hands-on democratic participation in this process gives some assurance that there will be community support for the ventures that the bank funds, making them more likely to succeed.