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
Community Banks Adjusting To "The New Normal"
Life in America has changed dramatically over the past week due to the coronavirus cover 19 pandemic. Terms which a few short weeks ago were not in our everyday vocabularies -- social distancing, shutdowns, lockdowns, sheltering at home
-- now inundate us. There is uncertainty as to what may come next, how long the crisis may last, and what responses will be recommended to, or required of, us all.
For community banks, it has been a time of challenges and difficult choices, as we work to protect our employees, our customers and our communities. Federal and state regulators, the Trump and Cuomo administrations, Congress and the State Legislature are working to provide guidance and assistance. IBANYS is committed to keeping New York community banks fully informed and up-do-date by sharing information and developments on a timely basis.
(PLEASE SEE DETAILS BELOW FOR WEBINARS AND CONFERENCE CALLS BEING OFFERED BY OUR ASSOCIATE MEMBERS - Pursuit (formerly NYBDC) on 3/19 @10am, ICBA Briefing on 3/19 @3pm and nContracts on 3/24@1pm)
- We have held conference call briefings to provide updates and discuss the potential impact on New York community banks, their customers, their employees and their communities. The discussions included legislative and regulatory updates, and input from bankers on their responses to this rapidly changing situation such as changes to operations, policies and procedures they have either implemented or are considering.
- We have also sent out regular written updates featuring policy updates, shared practices and much more.
- We have been in contact with senior leadership of the New York State Department of Financial Services to stay abreast of their perspective, and to relay the concerns and realities impacting community banks.
As banks consider a number of options, they remain open even as other businesses may close. The issues of employee protection and support are paramount.
- Banks may consider providing drive-through service only at some branches, to go along with digital/online banking services.
- Bank branches with no drive-through or ATM facilities could consider asking other nearby banks to make arrangements for cashing checks and consider refunding foreign ATM fees
- Banks are considering reduced hours during the week and also closing branches on Saturdays
- Banks are rotating or dividing their operations and customer care staffs to different locations (e.g., split among branch, operation center and headquarters) to ensure they are not all in one facility together run the event of exposure.
- Banks do not anticipate reducing their customer service hours over the telephone
- Banks are conducting meetings by appointment only
- Some banks are considering or have already moved to requiring interest only payments on loans during the crisis. They have also considered waiving overdraft fees for a certain period of time.
The
American Banker is providing
a comprehensive online feed of its coronavirus coverage, with analysis of its impact and how the industry is responding.
Visit www.americanbanker.com
As we all adjust to "the new normal" we urge everyone to please stay safe and follow the recommendations of the health professionals.
# . # . # . # . #
POSTPONED
IBANYS Directors Conferences Postponed Due To Covid 19
Due to the COVID-19 crisis, and with the priority of protecting the wellness of all involved,
IBANYS is following the guidelines sent forth by the CDC and will postpone our April 7, April 8 and April 16 Regional Directors Conferences in Rochester, Poughkeepsie and New York City. These conferences will be rescheduled.
IBANYS 2020 Meetings
-
click the meeting to download brochure and to register
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.
NOTE
: Please watch for news regarding whether this Summit will be held as scheduled, or postponed by ICBA.
POSTPONED
IBANYS
Security Conferences Postponed Due To Covid 19
Due to the covid 19 crisis, IBANYS has postponed our Regional Security Conferences scheduled for May 5 in Rochester and May 6 in Poughkeepsie. These conferences will be rescheduled.
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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Don't Miss These Two Important Webinars For Community Banks: Tomorrow & Next Tuesday
From Pursuit (Tomorrow, Thursday, March 19, 10:00 AM)
"Business Health During a Pandemic:
Steps Your Business Can Take Now"
Businesses everywhere are currently challenged by closures and loss of sales and customers due to the coronavirus. New resources and information are becoming available every day, and Pursuit (formerly Excelsior Growth Fund) wants to help you stay as informed as possible with actionable advice and accurate resources. In this webinar, Alek Marfisi (Upwind Strategies) will provide actionable advice that you can take now to meet the challenges presented by the coronavirus. Join Pursuit to learn more about what to expect from the virus' impact, what you need to do right now, and what resources are available to support your business during this time.
(Can't make the live webinar? Sign up anyway, and Pursuit will send you the recording.)
To sign-up, click on the link below:
https://pursuitlending.com/webinar-business-health-during-a-pandemic/
From Ncontracts & CCBA (Tuesday, March 24, 1:00 PM)
"Managing Coronavirus Operational Risk, Department By Department"
Ncontracts, a valued partner and friend of the community banking industry working with the Community Bankers Associations (CCBA) -- an organization that represents independent state community bankers associations across the country -- is offering a special complimentary webinar at 1:00 PM on Tuesday, March 24.
"Managing Coronavirus Operational Risk Department-by-Department: What You Need to Do Today" --
will
focus on the departments within the community bank most affected by the disruption created by COVID-19.
As the coronavirus spreads, bankers must assess the risks of the pandemic and what it could mean for their institutions. From sick staff and IT systems to fluctuating financial markets and the need to maintain critical functions, banks need to consider how COVID-19 will impact each major department and business line. Experts will discuss how to assess the operational risks coronavirus poses to your institution. From risk management to mitigation controls, the webinar will cover:
- A department-by-department breakdown of risks to evaluate, including HR, IT, finance, and the front line
- Forecasting changes in banking behavior and customer needs
- What regulators have to say about pandemic preparation and testing
- Determining if your existing BCP plan is adequate
- How to conduct a pandemic risk assessment
- Q&A will follow the expert presentations.
To register, click on the link below:
https://resources.ncontracts.com/webinars/202003-managing-coronavirus-operational-risk-community-banks
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Latest From The State Capitol: Covid 19, Budget Process Are The Whole Ballgame
With the coronavirus crisis dominating the news,
the State Legislature
changed its usual budget process by deciding to eliminate the traditional passage of one-house budget bills by the Senate and Assembly. Instead,
final budget negotiations with the Governor's office began last Friday as all parties work to reach agreement and enact a budget--perhaps as soon as later this week.
As "Politico" notes: ". . .The state budget will have to be crafted without a firm grasp on how much tax revenue Albany will have, what its needs will be. . .or what aid might be coming from the federal government... In sum, this year's budget negotiations are shaping up to be utterly without comparison."
- The virus outbreak has opened up a deficit of at least $4 billion for the state's new fiscal year beginning April 1, making it difficult for the state to provide relief to business owners harmed by shutdown orders. State Comptroller DiNapoli said New York should anticipate billions less in tax revenue as the state takes dramatic action to try and stop the virus' spread. He estimated the loss of tax revenue could be anywhere from $4 billion to $7 billion less than the $87.9 billion Cuomo's office and the state Legislature had projected last month prior to the outbreak.
Once the budget process is complete, it is unclear whether or when any other legislative activity may be taken up.
Committees have essentially been shut down. The situation is fluid.
The Legislature met today for the first time this week. Concerns about the spread of the coronavirus have resulted in extraordinary changes to the normal legislative process. Only the conference floor leaders and the presiding officer were expected to be present on the floor of the state Senate, and only 30 people will be in the Assembly at one time.
Post-budget, the Governor can exercise sweeping emergency powers, so the Legislature's presence in Albany would not be necessary. It could be summoned as needed. To date, two Assembly Members (Charles Barron and Ways and Means Committee Chairwoman Helene Weinstein, both from Brooklyn) have tested positive for the coronavirus.
Legislation Will Guarantee Job Protection, Paid Sick Leave
Proposed legislation has been agreed to by the Governor and legislative leaders that will
guarantee job protection and pay for New Yorkers quarantined because of coronavirus.
The legislation covers employees subject to mandatory or precautionary quarantine or isolation and also
includes a permanent paid sick leave policy.
The New York State Department of Financial Services
(DFS) has issued
four industry letters for state regulated banks regarding the coronavirus.
They include:
- DFS Relief order
- Operation Risk Guidelines
- Financial Risk Guidelines
- Support for Business Guidelines
These letters and other updates are available on the DFS website:
www.dfs.ny.gov
.
- DFS also released an order that grants temporary relief to COVID-19 affected state regulated entities that includes clarification of the process for temporarily relocating branches and other authorized places of business; supervision guidance for working from home; utilizing telephonic or electronic meetings under the public meetings law, and deadline extensions for filing requirements.
- DFS also emailed industry letters to the CEOs of state regulated Institutions that contain: 1) guidance on the coronavirus response, and 2) requests for information regarding each institution’s plans for response. DFS wants institutions to submit operational risk and financial risk preparedness plans as soon as possible (or within 30 days from the publication of the letter). DFS expects institutions to submit standard operating procedure continuity plans and risk management plans, showing adjustments made to address the coronavirus situation. DFS does not plan to examine against what is submitted, and does not expect submission of detailed data or analysis.
These letters are available on the DFS website (
dfs.ny.gov
)
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Joint Federal Regulatory Statement
A joint statement from the
Federal Reserve, FDIC and OCC encouraged banks to use their resources to support households and businesses during the covid 19 crisis. The
statement notes banks have more than doubled their capital and liquidity levels over the past decade and should use that strength to support households and businesses. Among other things, this update allows Subchapter S banks to continue providing dividends even while dropping below their capital buffer requirements. Sub S shareholders often rely on bank dividends to pay taxes and meet other expenses. The regulators also addressed a technical change to phase in, as intended, the
automatic distribution restrictionsgradually if a firm's capital levels decline. These announcements may be reviewed at
www.occ.treas.gov.
Regulatory announcements responding to the coronavirus outbreak are also available on ICBA's Crisis Response and Preparedness Center at
www.icba.org
.
Treasury Pitches $1 Trillion Coronavirus Economic Plan
Treasury Secretary Mnuchin met with Senate Republicans to urge a $1 trillion plan to address the economic fallout from the coronavirus pandemic. The plan reportedly includes $250 billion for direct payments to Americans by the end of April, perhaps through payments covering two weeks of pay. Additional checks may also be possible if the national emergency continued. Secretary Mnuchin warned that without action, the country could see an unemployment rate of 20%. T
he administration also plans to send another emergency spending request for nearly $48 billion to replenish federal agency coffers that have been depleted by the battle to stop the coronavirus.
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ICBA Briefing On Coronavirus Tomorrow At 3:00 PM (AND Later At ICBA.Org)
ICBA will host its inaugural Community Bank Briefing tomorrow (Thursday, March 20) at 3:00 p.m. and will focus exclusively on the coronavirus outbreak. The interactive webinar is complimentary for ICBA members, and will feature updates from ICBA President and CEO Rebeca Romero Rainey and other staff experts. The l
ive event registration is limited 300 participants, but the recording will be available 24 hours after it concludes, and can be ordered through the ICBA website at www.icba.org. For more information or to register, call 800-422-7285.
ICBA Shares Recommendations On Covid 19 Crisis With White House, Congress
Following intensive and detailed discussions with community bankers since the beginning of the coronavirus crisis,
ICBA has encouraged the White House, Treasury Department, and relevant congressional committees
to:
- Raise the annual issuance limit for bank-qualified municipal bonds to $30 million from $10 million.
- Allow more banks to access the Small Business Administration's low-doc, expedited 7(a) loan program.
- Exempt from taxation interest on community bank small-business loans and loans secured by agricultural real estate or primary residences in rural communities.
- Reduce the Community Bank Leverage Ratio from 9% to 8%.
- Delay implementation of the Current Expected Credit Loss accounting standard.
ICBA also expressed support for legislation
introduced by Senate Banking Committee member Kevin Cramer (R-N.D.)
to set the CBLR at 8% and extend CECL implementation for community banks
until 2025.
ICBA also wrote to the House and Senate Agriculture Committees
to urge reforms to support farm borrowers and agricultural communities. Among other things, the recommendations include trade aid payments, tax provisions for farm and mortgage borrowers and enhanced government guaranteed loan programs.
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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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