July 20, 2022
IBANYS Weekly E-Newsletter
President's Message

  • Registrations is now open for IBANYS' Executive Bank Symposium on September 12- 14 scheduled in beautiful, charming, historic Lake George, NY!! See the attached brochure under IBANYS meetings for more details and to register ---- New Venue!! New Format!! and New Agenda!!

  • Governor Hochul signed legislation (S.9348A/A.8292) directing the State DFS to conduct a study on bank overdraft fees in the state.   https://dingo.telicon.com/NY/library/2022/2022071578.PDF. You can read comments by the Governor, DFS Superintendent, and the two legislative Banks Committee Chairs who co-sponsored the legislation in our Albany section today.

  • The Federal Reserve’s July 13 “Beige Book” provides key insights on economic conditions in the twelve Fed districts around the country -- and includes the latest update on a number of important segments in the New York region, including on banking and financial services sector. See our Albany section below for all the details.

  • The annual August congressional recess is now just around the corner. Your local Members of Congress will be home in the district -- and, since the NYS Legislature is adjourned for the year, your local State Senators and Assembly Members are also back home. It's a chance to re-connect with your federal and state legislators, strengthen relationships, remind them of all that your banks do for your communities and customers (their constituents!) and to discuss important issues and priorities for community banks. ICBA’s EVP of Advocacy and Strategic Engagement Aaron Stetted (a Buffalo native) shares ideas for making lasting personal connections with lawmakers in this month’s  Independent Banker magazine.  . .  Read more. Meanwhile, Here's how to contact your state and federal elected officials:
  • https://www.nysenate.gov/find-my-senator
  • https://nyassembly.gov/mem/search/
  • https://www.house.gov/representatives
  • https://www.senate.gov/states/NY/intro.htm

-- John
IBANYS MEETINGS
ASSOCIATE & PREFERRED PARTNERS
ICBA INFORMATION
Up with Coupons
Larger interest payments can build a floor under your bond prices
By Jim Reber, ICBA Securities
Jim focuses on how larger interest payments can build a floor under your bond prices, and suggests strategies that can improve life for community banks.
ALBANY UPDATE

  • Governor Hochul signed legislation (S.9348A/A.8292) directing the State Superintendent of Financial Services to conduct a study on bank overdraft fees in the state.  To read the Governor's press release and statement and comments by DFS Superintendent Harris, State Senate Banks Chair Sanders and Assembly Banks Chair Fahy:   https://dingo.telicon.com/NY/library/2022/2022071578.PDF. . .

  • The Fed’s July 13 “Beige Book” details economic conditions in the twelve fed districts around the country. For the banking and financial services sector in the New York region, "contacts in the broad finance sector reported marked worsening in the general business climate, a decline in activity, and growing pessimism about the near-term outlook. Bankers reported lower loan demand across all consumer and business loan segments. Refinancing activity also decreased. Credit standards tightened somewhat across all loan categories, while delinquency rates were little changed." For more information about District economic conditions visit:  www.newyorkfed.org/regional‐economy

  • The Department of Financial Services has issued letters to federal student loan servicers urging them to adopt best practices to increase awareness and applicants to the Public Service Loan Forgiveness Program before waived rules that make it easier to have loans forgiven expire on October 31, 2022. https://www.dfs.ny.gov/reports_and_publications/press_releases/pr202207131

  • New York's State’s cap on property tax increases  will be set  at its top limit of 2 percent.

  • Tax collections in New York continued to exceed initial estimates by state officials despite gathering economic clouds, according to a cash report released by Comptroller Tom DiNapoli's office.  Read More
 
  • Supporters of good cause eviction measures– including local officials and interest groups -- rallied in Albany after the city announced it would appeal a recent court ruling that struck down the city law, and urged  the  State Legislature  to return to Albany immediately in a special session to address the issue.

  • At least seven Democratic incumbents face challengers in the August New York State Senate primary, and there are competitive races for open seats in Brooklyn and Staten Island. For more on who’s running, check out City & State’s new state Senate primary races tracker..  . .State Senate campaigns’ fundraising numbers are out and shed some light into the health of incumbents facing challenges – and the candidates who are hoping to unseat them. See all the details, and races to watch, in City & State’s state Senate primary tracker.
WASHINGTON UPDATE

  • Of the more than 3,000 counties in the nation, 20 of them will play a key role in determining control of the U.S. House in November, including Dutchess County in New York – that will likely determine whether Republicans or Democrats control  the U.S.  House and Senate in 2023. Politico reports..

  • The House advanced an ICBA-advocated cannabis banking safe harbor as part of a fiscal 2023 defense authorization bill.  Passing the bipartisan SAFE Banking Act as part of the National Defense Authorization Act (H.R. 7900) marks the seventh time the House has passed the ICBA-supported cannabis banking bill. In a  letter to House leaders   last week, ICBA and other groups urged lawmakers to include the cannabis banking safe harbor in the defense bill, noting current policy poses public safety risks. ICBA will continue advocating passage of the SAFE Banking Act in the Senate.

  • ICBA called on the House to advance amendments that would block legislation to expand the U.S. Postal Service’s postal banking pilot program from a pending appropriations bill.  The amendments to the fiscal 2023 House Financial Services and General Government Appropriations bill would bar funding in the bill from supporting the postal banking pilot or any other federal agency from providing banking services.  Introduced by House Small Business Committee Ranking Member Blaine Luetkemeyer (R-Mo.) and House Financial Services Committee Ranking Member Patrick McHenry (R-N.C.), the amendments would effectively block a provision of the appropriations bill that would provide $6 million to expand the current USPS pilot.  In a new letter to the House Rules Committee, ICBA said the lackluster results of the current postal banking pilot should prompt policymakers to abandon these proposals.  The USPS program offers check cashing, bill paying, ATM access, and expanded money orders and wire transfers at four locations. Customers may cash payroll or business checks to buy single-use gift cards worth up to $500 for a $5.95 fee.  ICBA has repeatedly pushed back against postal banking in a recent letter to Congress, LinkedIn op-ed, and three-part series of issue briefs to policymakers.

  • ICBA expressed opposition to certain tax provisions Congress is considering as part of a new spending package. In a  letter to Senate and House leaders,  ICBA said it continues to strongly oppose: A 3.8% net investment income tax on active Subchapter S shareholders; Any new requirements that financial institutions transfer customer financial data to the IRS;  Any increase in the taxation of capital gains or individual tax rates, including a new surtax;  Any cap or phaseout of the Section 199A deduction for shareholders in Sub S community banks and other pass-through small businesses.  ICBA will continue working to ensure federal tax and budget initiatives support community banks and the communities they serve.
 
  • In congressional testimony,  ICBA  called on lawmakers  to hold a hearing on applying CRA  to tax-exempt credit union – noting that modern credit unions use their tax subsidies to acquire taxpaying community banks. ICBA’s  testimony  noted: "When a community bank is acquired by a credit union, a CRA-covered institution is removed from the market with an adverse impact on low- and moderate-income communities." With federal banking regulators considering a proposal to update CRA regulations, ICBA  also shared its modernization recommendations:  Updating CRA asset thresholds and allowing smaller institutions to continue to use the current CRA framework;  Expanding and consistently applying CRA-qualifying activities;  Employing alternative approaches for minority- and women-owned financial institutions and community development financial institutions; Applying CRA equitably to all financial services providers;  Allowing institutions to receive CRA credit for qualifying activities outside their assessment areas, and Maintaining a public list of activities eligible for CRA consideration.  ICBA  offers a summary  of the interagency CRA proposal to help community bankers submit personalized comments by the Aug. 5 comment deadline.

  • The FDIC has updated its  resources on brokered deposits  to remind banks of regulatory changes to the brokered deposits framework.  In a new statement and updates to its question-and-answer document, the FDIC said: Deposits placed at insured depository institutions by unaffiliated entities (including broker-dealers) that operate under a primary purpose exception are still required to be reported as brokered if there are any additional third parties involved that qualify as a deposit broker.  The brokered deposit rule became effective on April 1, 2021, with a full compliance date of Jan. 1, 2022.