IBANYS Weekly E-Newsletter |
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President's Message
Registration is open for IBANYS' Executive Bank Symposium which is being held September 12- 14 in beautiful, charming, historic Lake George, NY! Today's newsletter provides all the details and registration information. New Venue!! New Format!! and New Agenda!!
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IBANYS and the New York State Department of Financial Services (DFS)this week discussed legislation (A-1082-A) related to cashing a check on your institution of $500 or less. DFS is looking for some language to help “tighten the bill up.” Three issues came out of our discussion:
- Can the bank charge a fee for this service? Do the banks that cash a check on your bank charge a fee for a non-customer?
- They ask for two forms of ID – government issue, Driver’s License, Passport, Social Security card etc. Is there second form of ID that the bank would feel comfortable using? The bill mentions utility bills, but is there any second form of ID the bank would use?
- Definition of Fraud - Checks, Fake ID, - any other fraud activity?
DFS indicated bill would impact all banking organizations, which includes credit unions, and would apply to both state and federally chartered banking organizations. I weighed in on the increased burden on the banks to change their policies and fee structure, train staff, etc. This bill passed both the State Assembly and State Senate, and is awaiting action by the Governor. DFS said that it would be difficult to have this bill vetoed at this time. Thank you for your engagement, and we welcome additional follow-up or feedback.
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The NYS DFS issued a Notice of Pre-Proposed Outreach on Draft Amendment to 23 NYCRR 500
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The annual August congressional recess means your local Members of Congress, the State Senate and State Assembly will all be back home in their districts. 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 offers tips for making lasting personal connections with lawmakers in this month’s Independent Banker magazine. Read more. Here's how to contact your state and federal elected officials:
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ICBA and CFPB are asking for feedback regarding the Section 1071 rule and helping to shape the implementation. The CFPB has created a sample form (attached) to assist in the data collection required by the 1071 rule. They are looking for banks to review the sample form and then be willing to have a conversation with Bureau staff one-on-one to discuss the form and give feedback on what should be added to/deleted/changed. If anyone is willing to have those conversations with the CFPB, please let me know by August 5th and I will get you to the right person at ICBA.
The CFPB is looking to collect data on banks working with their communities, especially the Minority and Women Owned businesses. While collecting this data is not mandatory for the applicants, CFPB strongly encourages all applicants to complete the form.
It’s a quick turnaround, but ICBA, IBANYS and CFPB would appreciate your comments.
Thank you.
John
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Click here to download the detailed brochure and registration information.
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IBANYS Executive Bank Symposium - Sept. 12-14, 2022 |
This year's meeting will bring a new look to IBANYS Executive Bankers Symposium. New Venue in beautiful, historic, charming Lake George; New Format will have roundtable, interactive discussions on three important topics community banks face today: 1.) Economic Conditions, 2.) Strategy and 3.) Fintech. New Agenda has one topic each day for a 2.5 hour session starting Monday after lunch, Tuesday morning and Wednesday morning. Each session will be interactive with a roundtable discussion moderated by IBANYS. A great time to share your views, hear thoughts from your colleagues and fellow bankers and gain insight from our subject matter experts on each topic.
Attendees have time to explore beautiful Lake George on Tuesday afternoon on their own or join your colleagues with activities planned by IBANYS. It will be a great time.
All C-level suite, Senior Management and Bank Boards are encourage to attend.
Please join us as we “Wave” Goodbye to Summer & “Fall” Into Fall.
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ASSOCIATE & PREFERRED PARTNERS |
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CECL Coffee Talk Q&A Session
August 12 at 10am ET
QwickRate® is hosting a monthly Q&A session on all things CECL. Join QwickRate President Shawn O’Brien and QwickAnalytics Director of Analytics Steve Huntington, along with special guest panelist Joshua Bowen, CPA, CGMA, CAMS, CITP of the Warren Averett accounting and consulting firm, on Friday, August 12 at 10am (Eastern). They’ll address the latest questions and concerns they're hearing, clarify misinformation, and then open things up for an audience Q&A. Any banker can attend, whether you use our CECLSolver tool (part of QwickAnalytics) or not. Save your spot.
Webinar Q2 Analysis: Perspectives and Concerns
August 16 at 2pm ET
We can never know for certain what's ahead. As challenges arise, will your bank be in a position of strength to meet them? Join QwickRate as they host a webinar reviewing Q2 analysis, trends and results for the nation’s community banks on Tuesday, August 16 at 2 pm (Eastern). QwickRate President Shawn O’Brien and IntelliCredit Principal David Ruffin will use QwickAnalytics® to share where your peers and competition performed well and where they struggled—so you can better assess your bank’s position today and prepare for the unknowns ahead. Register Now.
Link:
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Shield Compliance Announces Executive Leadership Changes and Market Growth |
Shield Compliance (https://www.shieldbanking.com/), a BSA/AML compliance and risk management solution for cannabis banking, announced the appointment of Noah Carey, Founder and CEO of Shield Compliance, to the role of Executive Chairman of the Board, and the promotion of Tony Repanich to President and CEO. Repanich was also appointed to the Shield Compliance Board of Directors. Carey founded Shield Compliance in 2015 with a vision to extend financial services to the emerging legal cannabis industry. Today, Shield has grown to support over 50 financial institution partners on its platform serving nearly 4,000 cannabis-related businesses in 35 states. Since January 2019, Shield has monitored 3.5 million transactions including $17.5 billion in deposits.
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BANKING ON SOLAR
New Scorecard Tracks Climate Action Among U.S. Regulatory Agencies
As integrating climate risk becomes increasingly important for creating more sustainable, prosperous, and resilient capital markets in the face of climate-related financial risk, all eyes are on U.S. regulatory agencies for what comes next in their efforts to take action.
At the end of June, Ceres Accelerator for Sustainable Capital Markets released their 2022 Climate Risk Scorecard, which assesses actions from nine federal agencies as it relates to protecting and mitigating climate-related financial risks to capital markets and institutions.
Read more about the scorecard in our latest blog, and reach out to learn how partnering with Sunwealth can help you can leverage capital to combat both climate change and inequality.
Best,
Darreck J. Mitchell, CRPC®
Director of Capital Markets
(781) 367-2137
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We are proud to announce a strategic partnership with Rivel, Inc that offers our IBANYS Members a 20% discount on new contracts and 10% recurring savings every year thereafter.
The Rivel Prospect Benchmarks® are the largest syndicated banking brand studies in the world. The survey program interviews hundreds of thousands of bank customers (Retail and Commercial) on how happy they are with their current bank, how likely they are to switch, what would make them switch, which banks they would consider switching to, and how best to reach them with a marketing message.
The Rivel Customer Benchmarks® are the largest syndicated banking customer studies in the world. The surveys cover hundreds of thousands of customers (Retail and Commercial) who rate the banking institutions they use on dozens of metrics including responsiveness, value for fees, staff training, mobile app ease of use, ATM quality, runaround, call center quality, etc.
We look forward to a long and rewarding partnership with Rivel, Inc.
If you are interested in speaking with Rivel please contact:
203-226-0800
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Up with Coupons
Larger interest payments can build a floor under your bond prices
By Jim Reber, ICBA Securities
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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.
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Budget officials in Gov. Hochul's administration expect revenue from the state's primary source of money — the personal income tax — to decline amid concerns over a curdling economy and project gaps in coming years. Hochul's office released a quarterly update on the state's finances, finding personal income tax revenue will likely be "reduced substantially" from initial projections given the economic headwinds and a shrinking gross domestic product over the last two quarters nationally. https://www.ny1.com/nyc/all-boroughs/ny-state-of-politics/2022/08/02/new-york-forecasts-shrinking-tax-revenue-as-economy-turns-sour . Although still projecting a $2.3 billion surplus for the 2022-23 fiscal year beginning next April, budget gaps are expected of $310 million the following year, and $3.6 billion after that based on the current rate of spending and expected revenue. By the 2027 fiscal year, the budget gap could reach more than $6 billion. Hochul noted the state has taken steps to weather a potential storm, citing the updated enacted Budget Financial Plan Plan incorporates future budget gaps. Read More.
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State Comptroller DiNapoli discussed the impact on New York of the recent economic news that showed that the U.S. economy shrank in the second quarter of this year, indicating either a recession or a potential one. Read More. DiNapoli, according to a new report, also said local sales tax collections in New York state totaled more than $5.5 billion in the second quarter of 2022 (April-June), an increase of 12.2% or nearly $604 million compared to the same quarter last year. April and May collections grew by 15.7% and 16.7%, respectively, while June increased 6.5% -- the first time since March 2021 the overall monthly year-over-year growth dipped below double-digits.
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Republicans in the State Senate this week called for a formalized cap of 2% on state spending in New York’s budget as inflationary costs continue to take their toll. Read More
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Could New York's election season be shaped by the economy? Some constituents are frustrated by high gas prices and paying more at the supermarket. Inflationary woes are made worse by the expense of living in a rural area. Read More
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Two polls released Tuesday morning show New York Gov. Kathy Hochul with "comfortable but not insurmountable" leads over her GOP rival Rep. Lee Zeldin (R-L.I.) in the general election matchup. The Siena Poll has Hochul ahead by 14 points, while the Emerson College Poll has Hochul leading by 16 points. The Siena Poll found that in the statewide races for Governor, U.S. Senator, State Attorney General and NYS Comptroller, incumbent Democrats are leading their relatively unknown GOP challengers -- but not by that much. The surveys found discontent with the direction of the country and state and with President Biden. Read More . . . Siena poll spokesman Greenberg noted " it’s a little surprising the races are as close as they are. The Democrats. . . lead (by) between 14 and 21 points. But . . .(there are) more than twice as many Democrats in this state than Republicans.” Read More
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The OCC released a series of infographics to promote comment on the interagency notice of proposed rulemaking (NPR) to modernize and strengthen the Community Reinvestment Act (CRA).The infographics include key information from the CRA NPR on performance standards; data collection, maintenance and reporting; assessment areas; community development; and retail lending products. The infographics are specific to small banks, intermediate banks, large banks, and wholesale or limited purpose banks. The large bank infographic includes an additional section on data reporting. The OCC, Federal Reserve Board, and FDIC issued a joint CRA proposal intended to promote increased lending and investment in low- and moderate-income communities; reflect changes in the banking industry; provide greater clarity and consistency; tailor requirements to bank size, business model, and local conditions; and promote transparency and public engagement. Comments on the proposal will be accepted on or before August 5, 2022.
Related Links
Contact Julie Blake, Director for Banking Relations, Office of the Comptroller of the Currency:(202) 649-6736; julie.blake@occ.treas.gov
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Members of New York's congressional delegation did not get all they wanted out of the deal struck between Senate Majority Leader Schumer and Sen. Manchin of West Virginia. Read more.
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Tax relief for New Yorkers is not likely in the new congressional climate deal, which also ends the hope for repeal of the Trump-era cap on federal deductions for state and local taxes (SALT).
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ICBA released an updated version of its “Meetings on Main Street” guide to help community bankers host members of Congress during the August congressional recess, which is underway for the House and starting next week for the Senate. ICBA’s guide provides a step-by-step process for scheduling, conducting, and promoting in-district meetings with members of Congress, including community bank visits by lawmakers and staff. A recent Independent Banker magazine article provides tips for making lasting personal connections with lawmakers to support top ICBA policy priorities. Community bankers can also share with policymakers ICBA’s “Public Opinion of Community Banks” dashboard, which features national and state-level polling data showing strong public sentiment in favor of local banking. Meanwhile, ICBA’s third-quarter “Advocacy in Action” government relations dashboard offers updates on recent advocacy priorities, including climate risk regulation, deposit insurance assessments, overdraft, and more.
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ICBA told the CFPB it should preserve the safe harbor fee rate that credit card issuers may charge to avoid scrutiny of their fees as unreasonable. Regulation Z permits card issuers to charge “reasonable and proportional” late fees. The safe harbor rate, which is indexed to inflation, is $30 for the first late payment and $41 for a subsequent late payment within six billing cycles. ICBA Comments: In a comment letter to the CFPB on its advance notice of proposed rulemaking on credit card late fees, ICBA said: 1) The CFPB should continue to increase the safe harbor level to account for inflation to ensure late fees retain their deterrent effect and cover the cost of processing late payments. 2) The CFPB should convene a panel under the Small Business Regulatory Enforcement Fairness Act if it develops a rule on late fees. . . .The CFPB is targeting “junk fees”—including overdraft and non-sufficient-funds fees—a characterization ICBA has rejected in a previous comment letter to the bureau.
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Senate Agriculture Committee Chair Stabenow (D-MI), and GOP Ranking Member Boozman (R-AK) plan to introduce a bill to give the Commodity Futures Trading Commission regulatory authority over bitcoin and ether, the two largest cryptocurrencies. GOP CFTC Commissioner Pham said the SEC is "not working together" with the CFTC and has acted "unilaterally" to establish regulatory precedent. The Wall Street Journal
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Acting Comptroller of the Currency Hsu encouraged banks to participate in information-sharing forums to help manage cybersecurity risks. Hsu cited efforts by the Financial Services Information Sharing and Analysis Center and the Cybersecurity and Infrastructure Security Agency to provide cybersecurity threat and vulnerability information. ICBA and CISA are hosting a tabletop exercise on separate dates this month to help community banks identify, mitigate, respond to, and recover from cyber incidents. Additional information, including FS-ISAC’s weekly risk summaries, is available on ICBA's Cyber and Data Security resource center.
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Federal regulators published a request for comment on a proposed interagency policy statement on commercial real estate loan accommodations and workouts. The updated policy statement to replace the 2009 statement would: Build on existing guidance on the need for financial institutions to work with creditworthy borrowers during times of financial stress; Update guidance on CRE loan workouts and add a new section on short-term loan accommodations; Address relevant accounting changes on estimating loan losses; Provide updated examples of how to classify and account for loans modified or affected by loan accommodations or loan workout activity. Comments are due by October 3.
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ICBA and other groups called on the Consumer Financial Protection Bureau to initiate a rulemaking that defines "larger participants” in the data aggregation services market that should be subject to ongoing supervision. The CFPB is developing a rule under Section 1033 of the Dodd-Frank Act to establish standards for sharing consumer financial data, typically through third parties. While the rule will apply to financial institutions and data aggregators, third-party aggregators are not subject to CFPB supervision. In a petition to the CFPB—which was covered by American Banker—the groups said: The 1033 regulation would be incomplete without consistent oversight of data aggregators; The CFPB should ensure tech firms are examined for compliance with applicable federal consumer financial laws, especially 1033 rulemaking. The joint letter follows last year’s ICBA letter calling on the CFPB to ensure nonbanks that access customer financial information take the same care in protecting consumer privacy and data as community banks. In that letter, ICBA said the law authorizes the CFPB to establish a supervisory program for nonbanks that offer consumer financial products or services. READ MORE
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As the industry manages high turnover, more companies are expressing dissatisfaction. Among firms that switch to a new bank, the previous bank’s lack of knowledge about their business is an increasingly common reason, according to a recent survey. Read story →
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Previously, many credit union CEOs were hired because they worked for the institution’s sponsor. Today the industry has become far more complex, and boards find they have to pay up to recruit candidates who can meet these demands. Read story →
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The SBA's Paycheck Protection Program (PPP) platform can now accept borrower requests to review lenders’ partial forgiveness decisions. According to a procedural notice issued earlier this year: 1) When a lender receives a forgiveness remittance from SBA on a PPP loan for which only a portion was forgiven, the lender must inform the borrower that it has 30 calendar days to seek an SBA loan review of the lender’s partial approval decision.2) Lenders were required by Feb. 26 to notify all borrowers with loans that received a partial forgiveness decision that they have 30 days to seek the review through their lenders.3)SBA retains discretion to accept or deny the borrower’s request to review the loan.4) If SBA selects the loan for review, the loan is not deferred, and the borrower must continue to make payments on the remaining balance of the loan.
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