IBANYS Weekly E-Newsletter
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Visit our website at
www.ibanys.net
for all you educational needs. See dates and registration information (if available) for our live programs and be sure to check out our webinar offerings. Watch for IBANYS' monthly marketing newsletter for additional features and updates.
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IBANYS News and Updates
A Week Of Challenges
This week has brought enormous volatility in the financial markets, uncertainty surrounding the ongoing public health challenges presented by the coronavirus, and responses from the federal and state government and many institutions. New York State reportedly has the most confirmed cases of any state in the nation. Last week, the Legislature passed proposals approving $40 million to fund New York's coronavirus response and granting Governor Cuomo the authority to suspend laws in a crisis. The Governor declared a state of emergency, but announced there are no current plans to close the State Legislature. State Comptroller DiNapoli cautioned that a recession is more likely amid fallout from coronavirus spread.
As these situations continue to develop, community banks will face a number of challenges. IBANYS will continue to closely monitor the situation.
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This week, community bankers from across the country are gathered in Orlando, Florida for ICBA Live, which is ICBA's annual convention, addressing innovative solutions and essential education while networking with peers and industry experts -- and celebrating our community banking industry. In Washington, the House Financial Services Committee focused on the ongoing problems involving Wells Fargo's "sales-focused culture" and its CEO told the Committee the bank is recovering from a broken culture and failed leadership. In commenting, ICBA President & CEO Rebeca Romero Rainey's op-ed noted that policymakers must continue to focus on the nation's persistent too-big-to-fail problem, while supporting local banking through pro-community bank reforms.
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Back home, IBANYS is preparing the final details for our Regional Directors Conferences April 7, 8 and 16 in Rochester, Poughkeepsie and New York City, respectively.
Also next month, we'll be heading down to Washington, D.C, with a contingent of New York community bankers to ICBA's Capital Summit and for meetings "on the hill" with members of our New York Congressional Delegation.
We hope to see you at each of these important events. More details are provided below.
IBANYS 2020 Meetings
-
click the meeting to download brochure and to register
April 7 - Rochester — April 8 - Poughkeepsie - registration is open
April 28 - May 1, Washington, D.C. Register at www.icba.org, then email Steve Rice or John Witkowski to request meetings with your local Congressional Representatives
Security Conference
May 5 - Rochester — May 6 - Poughkeepsie - brochure & registration info coming soon
IBANYS 46th Annual Convention -
The Roaring 20s - Another Decade of Growth and Prosperity for Community Banks
June 15-17, 2020 - Turning Stone Resort & Casino, Verona, NY
(details and registration information will be emailed this week)
A block of rooms has been reserved for this event. Tower Rooms: $164; Tower Junior Suites: $244; Lodges Suites: $269. To receive the room block rate you must call 1-800-771-7711. Book your room today. Our room block will sell out.
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I'm pleased to share some exciting news from the New York Business Development Corporation:
New York Business Development Corporation and Affiliates
Rebrand as Pursuit --
New Brand Reflects Mission of Helping Businesses Reach Higher and Succeed
New York Business Development Corporation (NYBDC), along with affiliates Excelsior Growth Fund and The 504 Company, has rebranded as Pursuit.
After announcing the impending changes last year, the organization has officially rebranded and unveiled a new website in late February.
Reflecting on the change to Pursuit, President and Chief Executive Officer Pat MacKrell said: “Our organizations have always worked together to provide the best lending solutions for our borrowers and will continue to do so. This rebrand allows us to go to market together, enhancing our ability to provide the most advantageous loan option to our clients, while simplifying our process. We have provided business owners with the loans and resources needed to successfully pursue their goals for 65 years. Our new brand highlights that commitment, brings all our offerings under a single roof and appeals to the community we aim to serve.”
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Latest From The State Capitol
- State Budget discussions continue in earnest, as the April 1 deadline is now just three weeks away. The State Senate and Assembly will soon release their respective state budget proposals.
Last week, several bills of note were introduced or acted upon in the Legislature. They include:
S.5565A
(
Sanders
) – (no Assembly companion bill yet.) This would establish the New York Public Banking Act to authorize the establishment of public banks at the local level, and allow public ownership of stock in them. The concept is based on a similar idea in California.
A.2611E (Dinowitz)/S.2884E (Sanders),
which was moved to
the Senate floor and is also on the Assembly floor. It
prohibits the disclosure or use of consumer credit history in hiring, employment and licensing determinations except for employers who must utilize credit history pursuant to NYS or federal law.
A.8038A (Zebrowski)/S.5881A (Sanders),
which would permit consent for service
for certain collection procedures (including tax levies) by use of
magnetic tape or electronic means. The legislation has been reported out of the Senate Budget & Revenue Committee to the Senate Finance Committee, and the Assembly version is in Assembly Ways & Means Committee.
T
hese bills were on the agenda of the Senate Banks Committee:
A.9597 (Zebrowski)/S.6919 (Mayer)
, which relates to limitations on bank accounts after the bank accounts are closed.
A.3637 (Niou)/ S.3850 (Sanders)
would consider all asset-based lending transactions as loans and thus bring them under State usury laws.
Legislation on key committee agendas this week include:
Senate Judiciary Committee agenda
:
S.3923 (Hoylman)/A.5630 (Weinstein)
proposes significant changes to the state's short form power of attorney.
On the State Assembly Banks Committee
A.9677 (Abinanti)/S.982 (Breslin)
states that banking institutions that maintain checking accounts for customers must either pay checks in the order received, or pay them sequentially from smallest to largest amount.
Latest On Consumer Overdraft Protection Act
A.9596 (Jean-Pierre)/S.2133 (Sanders) --
"The Consumer Overdraft Protection Act" would limit overdraft fees over the course of one year to $100, including other additional charges and/or fees.
A number of community banks have expressed concerns about this legislation, and IBANYS is working with the Legislature going forward.
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Message From Financial Regulators & Lawmakers On Coronavirus
Financial regulators and some members of Congress encouraged financial institutions to meet the financial needs of customers affected by the coronavirus, also known as COVID-19. In a joint statement, federal and state financial regulators said they will provide appropriate regulatory assistance to affected institutions and recognize potential staffing shortages. They noted prudent efforts consistent with safe and sound lending practices should not be subject to examiner criticism. Meanwhile, Senate Banking Committee Democrats urged federal and state officials to provide guidance to financial institutions to help affected communities. The lawmakers also called on financial trade groups to urge financial institutions to prioritize employees' and customers' health, economic well-being, and security amid the outbreak.
ICBA Supports NEPA Exemptions For Guaranteed Loans
ICBA supports a Council on Environmental Quality proposal to exempt USDA and SBA guaranteed loans from proposed environmental impact statement requirements under the National Environmental Protection Act. They noted the exclusion is important because the private sector (not the government) provides funds for these programs. ICBA also wants the final regulation to clarify the exclusion also applies to all refinancings of guaranteed loans and all other environmental assessments.
Join IBANYS In Washington -- Meet With Key Policymakers
IBANYS will be in Washington, D.C. from Tuesday, April 28 - Friday, May 1. It's ICBA's annual Capital Summit, featuring remarks by key federal policymakers including:
- Rep. Patrick McHenry (R-N.C.), Ranking Member, House Financial Services Committee;
- Sen. Mike Rounds (R-S.D.), Member, Senate Banking Committee member;
- Federal Reserve Governor Michelle "Miki" Bowman, the first person ever to fill the Fed’s community banking seat;
- Rep. Greg Meeks (D-Queens), member, House Financial Services Committee & Chairman, Subcommittee on Consumer Protections and Financial Institutions, and
- Kathy Kraninger, Director, Consumer Financial Protection Bureau (CFPB).
Each year, IBANYS brings a contingent of New York community bankers to the summit, and
we will once again meet "on the hill" with members of our New York Congressional Delegation.
Among the issues we will discuss are:
- Bank Secrecy Act reform;
- a cannabis-banking safe harbor;
- the industrial loan company loophole, and
- credit union and Farm Credit System tax advantages.
Register for the Capital Summit with ICBA (www.icba.org), and then email IBANYS' John Witkowski (Johnw@ibanys.net) and Steve Rice (Stever@ibanys.net) to sign up for your congressional visits!
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ICBA: Community Banks Must Build On Recent Advocacy Momentum
Speaking at ICBA Live in Orlando, Florida, ICBA President & CEO cited several advocacy successes over the past year and strongly encouraged community bankers to build on recent advocacy momentum by advancing additional reforms and enhancing pressure on credit unions, the Farm Credit System, and industrial loan companies. She noted: "We are truly ‘Waking Up’ Congress on these and other issues," and urged them to work collectively and be heard in Washington during this election-shortened 2020 congressional session.
Update On
FDIC’s Proposed Rule On Brokered Deposits
Some of you may have received recently communications about the FDIC’s proposed rule on brokered deposits. Specifically, you may have received letters that were the result of Kasasa’s recent webinar and grassroots campaign regarding the proposal. Kasasa is a consulting firm that helps community banks attract and retain deposits and they are very concerned about the FDIC proposal. The comment period for the FDIC proposal ends on April 10, 2020. ICBA shares the same concerns about the FDIC proposal as Kasasa does. We believe, for example, that the proposal interprets the definition of “deposit broker” so broadly that it could include many types of deposit consulting services. As a result, more community bank deposits could be considered “brokered deposits” if the proposal is adopted. We also have some concerns about the proposed application process to qualify for the primary purpose exception under the rule. ICBA is currently working with a number of associations and stakeholders including Kasasa’s counsel to see how best to amend the proposal and will communicate with you further on our recommendations. In the meantime,
if you have any questions, please contact Chris Cole, EVP and Senior Regulatory Counsel at
Chris.Cole@icba.org
.
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Make your voice heard...Join on April 28 - May 1 in Washington DC
Click below for details and to register.
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IBANYS Preferred Partners
(Click the company logo to learn more about our partners)
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IBANYS Preferred Partners
(Click the company logo to learn more about our partners)
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Free Webinars offered by IBANYS Preferred and Associate Members
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Promontory Interfinancial Network will be hosting a free webinar on March 24
th
at 10 am ET that covers how ICS and CDARS can help a bank manage its balance sheet since the passing of the regulatory relief bill. A description of the webinar follows:
Reg relief makes most reciprocal deposits nonbrokered, providing banks the opportunity to attract even more deposits. Thanks to the regulatory relief bill, most reciprocal deposits are no longer brokered. This comes as banks continue to face intense competition for deposits.
Join Promontory Interfinancial Network—the nation’s leading provider and inventor of reciprocal deposit placement services—for a free webinar that outlines key provisions of the law and the impact ICS, or Insured Cash Sweep®, and CDARS can have on banks’ balance sheets. The webinar will also cover how banks can use ICS and CDARS to capitalize on the opportunities at hand; presenters will discuss cost-effective ways to use the services to attract high-value relationships (even as deposit competition intensifies) and to lock-in more low-cost funding. This webinar is a “must” for decision-makers at banks of all sizes, especially for community banks that utilize collateralized deposits and/or listing services.
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