IBANYS Weekly E-Newsletter |
|
-
Visit our website at www.ibanys.net to review our daily updates on COVID-19.
|
|
|
|
PLEASE NOTE: July 1, 2021
IBANYS new address:
194 Washington Avenue, Suite 420,
Albany, NY 12210
|
|
The President's Message
By John Witkowski, President & CEO
Hope everyone is well and looking forward to a great summer!
The New York State Legislature adjourned in the early morning of June 11 without passing the legislation that would have allowed credit unions to enter the municipal deposits business. However, we will likely see the proposal again in the future. We still have a lot of work to do, and we look forward to having your continued support.
# # # #
Federal Reserve officials left policy unchanged today, but appeared to revise expectations on when they would first raise interest rates. The Fed's summary of economic projections showed policymakers expect to make two interest rate increases by the end of 2023 to 0.6%, up from 0.1%.
# # # #
-
ICBA and the nation’s community bankers are deeply concerned with the Biden administration’s plan to require financial institutions to report customer bank account information to the IRS, ICBA Chairman (and former IBANYS Chairman and longtime board member) Robert Fisher wrote in a new LinkedIn article. The President and CEO of Tioga State Bank in Spencer, N.Y., wrote that new data-reporting requirements would infringe on the privacy of bank customers, drive customers out of the banking system, create complex new reporting burdens, and expose community banks to penalties for inadvertent errors. “While closing the tax gap can and should be an alternative to raising taxes on Americans, policymakers should emphasize investments in the IRS over regulatory mandates that would harm local communities,” Fisher wrote. The American Families Plan proposes requiring financial institutions to report to the IRS on account flows, including bank loans, on accounts over $600. ICBA has strongly opposed the proposal since it was issued in April. READ THE ARTICLE
# # # #
As always, thank you for all you do every day for your local customers, communities, small businesses and our industry. . . and, of course, for IBANYS!
|
|
ASSOCIATE MEMBERS & PREFERRED PARTNERS |
|
|
|
Banks Should Expect Significant Changes to Upcoming Cyber Liability Renewal |
An increased dependency on virtualized services, especially over the past year, means that cyber liability ransomware claims have increased both in frequency and severity. Banks are more exposed than ever before to data risks, and these are problems that are not going away any time soon.
|
|
|
|
Pentegra is a leading provider of retirement plan, fiduciary outsourcing and institutional investment solutions to clients nationwide. Today, with nearly $15 billion in assets under management, we invite you to share our story.
|
|
Providing Personalized Tax, Assurance, Technology, and Financial Advisory Services. Since 1946 |
What makes S.R. Snodgrass different from other accounting firms? Simply put, a truly personalized approach for every client, with a commitment to building and cultivating relationships that only get better over time. We strive to become an essential part of your organization, bringing you the benefits of our extensive industry expertise and knowledge of best practices in multiple service areas on a daily basis. We encourage proactive communication and provide additional insights through articles, white papers, and presentations. Perhaps most importantly, we value the rewards of maintaining long-term relationships (some for over 40 years), and helping every client succeed and prosper.
|
|
HUMAN RESOURCES MANAGEMENT- LIVE/VIRTUAL PROGRAM
AUGUST 11-12, 2021
9 AM- 4:00PM CST
AGENDA:
- Employee Recruitment, Selection, and Placement
- Structural and Behavioral Interviewing
- Driving Employee Engagement
- Creating and Accountability Culture
CPE/HRCI Credit available!
Cost:
In Person: $695
Virtual (via zoom): $595
$100 for each additional employee at same bank
|
|
AUDIENCE:
- Human Resource Managers
- Branch Managers
- Department/
- Division Managers
- Management/
- Hiring/Coaching/
- Counseling
Instructor, Kerry Sauley, is the Marjorie B. Ourso Excellence in Teaching
Professor at Rucks Department of Management
Louisiana State University,
Baton Rouge, LA.
|
|
ICBA Provides Tips for Preventing Elder Financial Abuse
Washington, D.C. (June 15, 2021) — June 15 is World Elder Abuse Awareness Day, and the Independent Community Bankers of America (ICBA) and its subsidiary, the Senior Housing Crime Prevention Foundation (SHCPF) are providing tips for preventing the disturbing trend of elder financial abuse.
|
|
IBANYS Webinars
Are you participating in IBANYS webinars? Now is the time! IBANYS webinars provide timely, important information on subjects of interest to New York community bankers including human resources, business development, investment, compliance and security and much more. They are valuable not only for their content, but for their convenience and low-cost. Take part from the comfort and privacy of your office, without leaving the bank.
|
|
Subscription Tokens
The More You Buy, The More You Save
How does it work:
Tokens can be used to purchase live or recorded webinars anytime, with no expiration! Tokens for both live and recorded webinars are available for an additional fee. (What’s the difference? Click here for the full description.)
Once you have your Subscription Token code, you can immediately register for webinars by using the code at checkout! (Subscription tokens not applicable for full series registrations, or other specials.)
|
|
IBANYS Efforts Again Stopped Credit Union/Municipal Deposits Legislation
The New York State Legislature adjourned without passing the legislation that would have allowed credit unions to enter the municipal deposits business. Here are copies of:
Working together, we have once again succeeded in blocking this effort by the credit unions to expand their powers. IBANYS believes allowing tax-exempt credit unions not subject to CRA oversight or compliance to hold public deposits would be harmful to New York's community banks and to the municipalities, consumers and small businesses we serve. We fully expect to see this type of proposal resurface in the future, so we have our work cut out for us in 2022 and beyond.
IBANYS strongly supported allowing thrifts and mutual institutions (which unlike credit unions,do pay taxes andare subjectto CRA compliance) to engage in municipal deposits without having to establish limited purpose subsidiaries to do so, as they are currently required to do under state law. While that goal was not achieved this year, IBANYS fully intends to continue working toward that end.
Thanks to all the New York community bankers who supported our efforts and participated in our outreach to key legislators, including the chairs of the two legislative Banks Committees, to fully express our concerns over the proposal.
IBANYS will provide a more detailed summary and analysis of the 2021 session as it impacts New York community banks once the dust settles and we have carefully reviewed the final legislative results.
# # #
Other Updates From Albany
-
Tax revenue for New York state over the last two months were $4 billion higher than initially projected by budget officials, a report released Tuesday by Comptroller Tom DiNapoli found. Read More
-
A year ago, New York's finances were in serious doubt: Pay raises for public workers were put on hold, money was borrowed to cover essential expenses and economic activity was largely frozen in place as businesses and gathering spaces closed due to the pandemic. Now, as COVID-19 cases recede and more people are vaccinated, the state's finances are receiving a boost from two key rating agencies: S&P Global Ratings and Fitch Ratings on Monday raised New York's credit outlook. Read More
|
|
-
Most FDIC-supervised institutions do not have material LIBOR exposures, FDIC Chairman Jelena McWilliams said last week. Speaking at Friday’s Financial Stability Oversight Council meeting, McWilliams said those with exposures tend to be larger banks, which have generally developed appropriate plans to move away from LIBOR. During the meeting, officials emphasized the need to transition from LIBOR to an alternate reference rate, with Treasury Secretary Janet Yellen citing the Secured Overnight Financing Rate as a “robust” rate suitable for use in most products. The U.K. Financial Conduct Authority has said it will cease publishing LIBOR for the one-week and two-month settings immediately after Dec. 31, 2021. U.S. regulators last fall encouraged banks to cease entering new USD LIBOR contracts by that date. The Alternative Reference Rates Committee—on which ICBA serves—is implementing the LIBOR transition, encouraging the use of SOFR, and encouraging market participants to continue the transition using currently available tools.
-
The FDIC board of directors approved an updated Statement of Policy Regarding Minority Depository Institutions. The updated statement of policy: Clarifies the FDIC’s expectations for technical assistance; Highlights the FDIC’s MDI outreach efforts, and details terms, reporting requirements, and examination staff considerations.
-
ICBA this week told Congress that postal banking is not the solution to reaching more unbanked Americans. In the first issue brief in a three-part series, ICBA said community banks are committed to bringing all members of their communities into the banking system, but postal banking would merely jeopardize the U.S. Postal Service’s core mission. Future ICBA issue briefs will focus on how the USPS is unfit for the inherent risk of financial services and how more realistic alternatives to postal banking would more successfully reach the unbanked. Read the first brief.
-
The Farm Credit Administration released its quarterly report on the ag economy and the performance of the Farm Credit System, whose growth is largely generated by tax free ag real estate lending. Gross loan volume has increased to $321 billion—a jump of 10 percent over a year ago—while total FCS assets exceed $400 billion. ICBA is encouraging community bankers to urge Congress to support the Enhancing Credit Opportunities in Rural America (ECORA) Act (H.R. 1977), which would exempt from taxation interest income on farm real estate and rural mortgage loans. IBANYS urged members of the New York congressional delegation to support this initiative in our discussions during the Capital Summit. . . Contact Congress now.
-
ICBA and other groups again urged House members to oppose a Senate-passed resolution to repeal the OCC’s “true lender” rule. In a joint letter to the House following a similar message last month, the groups said repealing the OCC rule would create significant legal impediments to creating a more robust framework for providing safe and affordable credit. Instead, they said the OCC should be allowed to modify the rule. The OCC rule, which ICBA supported in a comment letter last year, creates a standard to determine when a bank is the “true lender” when partnering with a third party. Under the rule, banks are deemed true lenders if they fund the loan or are named as the lender in the loan agreement on the origination date. The Senate resolution, which the Senate passed by a 52-47 vote last month, would repeal the rule under the Congressional Review Act, which allows lawmakers to invalidate federal rules and limits agencies’ ability to issue a similar rule in the future.
-
ICBA is encouraging community bankers to call on Congress to hold hearings on credit union acquisitions of taxpaying community banks. (IBANYS urged members of the New York Congressional Delegation to support this effort during our recent grassroots calls.) ICBA’s Be Heard grassroots action center makes it easy for community bankers to contact their members of Congress. Community bankers can continue the campaign against the credit union tax exemption at this month’s ICBA Capital Summit, which is set to livestream April 27 with remarks from top policymakers and virtual meetings with congressional offices. CONTACT CONGRESS
-
A new survey found that 71% of U.S. adults said they'd have a more favorable view of their bank or other financial provider if they got rid of overdraft fees. . . but eliminating overdraft fees "might be more controversial than it appears at first glance." Nearly half of adults surveyed said called overdraft fees a "fair charge" for customers who have spent beyond their means, while just over half said they're an unfair penalty. You can read more here: The Public Is Divided on Overdraft Fees' Fairness. Here's What Banks Should Be Watching.
- Representative Suozzi (D-L.I.), who has been a leader in urging an expansion of the state and local tax (SALT) deduction, is weighing proposing what he terms a "patriot tax" -- a one-time wealth tax on the richest Americans that would include a one-off 2.5% levy on accumulated wealth of more than $50 million, and a 5% tax on assets over $100 million.
|
|
|
|
|
|
|
