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
The growing concerns regarding the Novel Coronavirus
has generated a number of actions and updates we want to share.
Here's the latest.
Coronavirus Update From Federal Home Loan Bank Of New York
The Fed Response to Coronavirus
Meanwhile,
The Federal Open Market Committee has announced a 50-basis-point cut to its benchmark interest rate target
amid economic turmoil caused by the coronavirus outbreak. The cut lowers the federal funds rate to a range of 1 to 1.25%. The FOMC said the U.S. economic fundamentals remain strong, but noted the coronavirus poses evolving risks. As "The American Banker" noted this morning, the Federal Reserve's decision to cut its benchmark interest rate amid growing coronavirus concerns is bound to have an impact on banks, but just how broad and how deep remains to be seen.
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IBANYS held our second and third regional regulatory compliance conferences in Rochester and Poughkeepsie.
The first Compliance Conference was held in NYC in January and was co-hosted with NYLIB. We would like to thank our speakers from the OCC, FDIC, NYS Department of Financial Services and leading experts on issues such as cybersecurity, virtual currency and building an effective compliance culture for sharing their knowledge and expertise. We would also like to thank all those who attended. The attendees had an opportunity to be interactive, ask questions and to network.
Details and registration information for the Directors Conference has been mailed. Details are also available on IBANYS' website -- or, click the links below to download the detailed brochure.
IBANYS 2020 Meetings
-
click the meeting to download brochure and to register
April 7 - Rochester — April 8 - Poughkeepsie - registration is open
ICBA Capital Summit
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 20's — Another Decade of Growth and Prosperity for Community Banks
June 15-17, 2020 - Turning Stone Resort & Casino, Verona, NY
(details and registration information coming soon)
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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Latest From The State Capitol
As the state budget process continues, both the State Senate and Assembly have released their Economic and Revenue Reports, and expect to introduce their respective one house budget bills by the middle of this month.
We have already seen completion of Joint Legislative Hearings on the $178 billion proposal, as well as the Governor's 30-day amendments.
Meanwhile,there is other legislative activity,
including new introductions and bills working their way through the committee process or on the floor of one chamber or the other.
Recent Introductions
S.5565A
(
Sanders
) – No Assembly version as yet. This bill would establish the “New York Public Banking Act”. It would 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.
In the State Assembly Banks Committee
A.9677 (Abinanti)/S.982 (Breslin)
would mandate that banking institutions which maintain checking accounts for customers must either pay checks in the order received, or pay them sequentially from smallest to largest amount.
In the State Senate Consumer Protection Committee
A.2611E (Dinowitz)/S.2884E (Sanders)
would
prohibit disclosure or use of consumer credit
history in hiring, employment and licensing determinations, with an exception for employers who must utilize credit history pursuant to NYS or federal law. The legislation is already on the Assembly floor. IBANYS is monitoring this bill.
In the Senate Budget & Revenue Committee
A.8038A (Zebrowski)/S.5881A (Sanders)
would allow consent for service for certain collection procedures (including tax levies) in the form of magnetic tape or through electronic means. The legislation is also in the Assembly Ways & Means Committee.
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.
New York Fed's Latest Actions Re: LIBOR
The Federal Reserve Bank of New York began publishing Secured Overnight Financing Rate averages and a SOFR index to support the transition away from the London Interbank Offered Rate ("LIBOR"). The Bank will publish 30-day, 90-day, and 180-day SOFR averages, as well as a daily index that allows users to calculate compounded average rates over custom time periods. SOFR is the alternative to LIBOR recommended by the Alternative Reference Rates Committee (ARRC), which is implementing the transition. ARRC Chair Tom Wipf said market participants can use the data to create new SOFR-based contracts. ICBA serves on the ARRC and encourages community banks to begin preparing for the transition from LIBOR.
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Latest News About CFPB
According to press reports, the U.S. Supreme Court appears likely to rule in favor of giving the President more power regarding the Consumer Financial Protection Bureau (CFPB), with conservative justices seemingly
receptive to the argument that the constitution requires the President to have the ability to fire the agency's director
. Meanwhile,
Leonard Chanin
, currently the Deputy to FDIC Chair Jelena McWilliams,
is returning to the CFPB as the second in command on a part-time basis and
will serve as Acting Deputy Director effective March 9.
Facebook May Revamp, Delay Launch Of Libra
Facebook Inc. is looking at revamping its Libra project, accepting digital versions of government-backed currencies - including the U.S. dollar and the euro - alongside its Libra token, according to three people familiar with the matter. Facebook still intends to launch its digital wallet, although that rollout will be delayed several months.
Join IBANYS In Washington -- Meet With Key Policymakers
IBANYS will be in Washington, D.C. from Tuesday, April 28 - Friday, May 1 for ICBA's annual Capital Summit. The program will feature remarks by key federal policymakers, including House Financial Services Committee Ranking Member Patrick McHenry (R-N.C.), Senate Banking Committee member Mike Rounds (R-S.D.) and Federal Reserve Governor Michelle "Miki" Bowman, the first person ever to fill the Fed’s community banking seat.
Each year, IBANYS brings a contingent of New York community bankers to the summit, and
we will once again be scheduling important meetings "up on the hill" with members of our New York Congressional Delegation
. We'll discuss such key federal issues as:
- Bank Secrecy Act reform
- A cannabis-banking safe harbor
- The industrial loan company loophole
- 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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Support NEPA Exemptions For USDA, SBA Loans
ICBA is calling on community bankers to voice support for a proposal to exempt USDA and SBA guaranteed loans from proposed environmental impact statement requirements under the National Environmental Protection Act. ICBA's custom letter to regulators on its “Be Heard” grassroots action center (
www.icba.org
) says all guaranteed loan programs should be exempt from NEPA requirements because they are financed by the private sector. Comments are due Tuesday, March 10.
To submit your comments, click on the link below
, or cut and paste it into your browser.
https://www.icba.org/advocacy/grassroots-be-heard/actioncenter?vvsrc=%2fcampaigns%2f70959%2frespond&utm_source=informz&utm_medium=email&utm_campaign=informz&_zs=7NieU&_zl=UDP02
Another State Regulator Blocks Credit Union's Acquisition Of Community Bank
The Iowa State Division of Banking has denied the sale of a tax-paying community bank to a tax-exempt credit union.The Iowa regulator said the transaction would violate state law requiring that banks be sold to other banks, and noted the parties proceeded with the transaction before the agency had a chance to issue its decision on the deal, requiring immediate denial of the application. The Iowa decision follows the recent decision by the Colorado State Banking Board to block a credit union acquisition of a community bank in that state. ICBA commended the Colorado decision, and called on other state agencies to examine their banking statutes to determine the legality of credit union purchases of state-chartered banks’ assets. ICBA's Credit Union Task Force and "Wake Up" campaign has raised the profile of the disturbing trend of credit unions buying smaller community banks, which has led to increased pressure from Congress on this issue.
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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