(Please note: Unless circumstances dictate otherwise, the next IBANYS newsletter will be published Wednesday, January 6, 2016.)
IBANYS SPECIAL E-MAIL REPORT OF DECEMBER 21, 2015
December 21, 2015
To: New York Community Banks
From: John Witkowski,
President & CEO, IBANYS
President & CEO, IBANYS
Good morning.
As we prepare to enjoy what I hope will be a healthy and happy 2015 holiday season, I'm pleased to report that December has been an active and productive month for community banks.
We've seen positive results on several fronts in both Washington, D.C. and Albany.
Here's a quick summary for your information.
1) Congress passed and the President signed the federal highway bill. It includes important relief for community banks. The initiative:
- Exempts institutions under $10 billion in assets from cuts to Federal Reserve stock dividends. According to estimates, the exemption will save community banks roughly $200 million per year: A $100 million bank would save approximately $60,000 annually, while a $500 million and $1 billion bank would save roughly $300,000 and $600,000 per year, respectively;
- Advances several provisions from ICBA's "Plan for Prosperity regulatory relief agenda strongly supported by IBANYS. The new law provides that on the 10-year Treasury rate with a maximum of 6 percent;
- Eliminates redundant privacy notice requirements;
- Expands the 18-month exam cycle;
- Eases CFPB restrictions on rural mortgage lenders;
- Expands TruPS CDO relief for small bank holding companies, and allows thrift holding companies to take advantage of new SEC registration thresholds;
- Restores funds cut from the crop insurance program that would have significantly curtailed the private-sector delivery of federal crop insurance, and
- Drops language that would have extended higher Fannie Mae and Freddie Mac guarantee fees.
2) The final omnibus budget deal includes ICBA-supported tax extenders and cybersecurity information-sharing legislation. The agreement:
- Includes the ICBA-advocated Cybersecurity Information Sharing Act, which encourages the public and private sectors to share critical cyber-threat information;
- Requires regulators to study and report to Congress the effect of the Basel III capital requirements on mortgage-servicing assets;
- Includes a $3 billion increase in funds for the Small Business Administration's 7(a) guaranteed loan program;
- Reauthorizes SBA's expired 504 refinance program,
- Continues fee waivers for loans to veterans;
- Includes a permanent five year S-Corp recognition period for built-in gains;
- Permanently extends the S-Corp stock basis adjustment for charitable contributions of property;
- Makes permanent a $500,000 Section 179 expensing limit.
4)
In Albany, IBANYS submitted testimony to a Hearing of the NYS Assembly Banks and Small Business Committees on December 17.
The hearing's focus was to explore the needs of small businesses to access credit, and to review State policies and programs designed to assist in the financial marketplace.
Please click here to read IBANYS' testimony.
In closing, I want to thank you for your support on these issues during December, and for all that you do for our industry and Association throughout the year. There is still a great deal of work to do in 2016. Together, we will continue building on the strong foundation we have established for members and our industry.
Best Regards,
John
John Witkowski
President & CEO
IBANYS
19 Dove Street, Suite 101
Albany, New York 12210
518.436.4646 (office)
716.880.0518 (cell)
email: Johnw@ibanys.net
email: Johnw@ibanys.net