View from CBA - February 13, 2015

Senate Banking Committee Takes Up Regulatory Relief

This week, under the leadership of Chairman Richard Shelby (R-AL), the Senate Banking Committee took its first look at the unintended consequences of the Dodd-Frank Act, focusing this time on its impact at smaller institutions such as community banks and credit unions. During the pair of hearings, it quickly became clear the search for common ground and middle-ground continues. There was a decent amount of shared interest in the issues affecting community banks, so I think there is a future for bipartisan regulatory relief legislation. Much of the narrative dealt with the costs of red tape on community banks, broadening the definition of QM, relief under the Volcker Rule, the benefits of cost-benefit analysis, the consolidation trend, and the definition of a community bank as it applies to legislation increasing the threshold for CFPB examination and reporting. In addition, discussion touched on whether regulations like the remittance rule have prevented community banks from being able to offer certain products at all.
 
The Chairman suggested future hearings "will continue this examination by focusing on unnecessary statutory and regulatory impediments across the financial services spectrum." We look forward to the debate. (Please see the write ups below for more detail.)

Innovation – or Lack Thereof – Will Determine Bank Fates

No doubt, regulation impacts everything. When banks spend more resources lawyering-up than developing new products and services, well... you get the picture. But, as much as regulation is impacting the future of community banks, so is technology. I have been saying for some time now digital transformation will determine the future for banks of all sizes. But, American Banker summed it up this week in this headline: "Community Banks Warned: Be Innovative or Be Toast."

Meeting with Our Members

On Thursday, I took the polar express to visit U.S. Bank in Minnesota, where it was three degrees below zero upon landing. Richard Davis (Chairman, President and CEO), Kent Stone (Vice Chairman Consumer Banking Sales and Support) and I had a good talk on regulation and technological change. While there I also had the great fortune to bump into Lisa Glover (EVP, Chief Risk Officer), past Chair of CBA's Community Reinvestment Committee, who currently is working with us on risk issues.

Five until we go LIVE!

Five weeks that is! Team CBA looks forward to welcoming another record-breaking crowd of our favorite bankers to sunny Orlando, Florida next month (March 23-25, 2015). We promise to deliver our best gathering ever. For three days we will explore "The Consumer Agenda" up close and personal. We will challenge you to "flip your thinking." We will provide you with brand new research on what consumers want and expect from their bank. We'll get to the core of Apple Pay. Our sold out exhibit hall will give you access to the latest technology and solutions to take back to the bank. Also, we will debate "Banking: Live or Let Die?" (Cue Sir Paul McCartney.) Cam Fine, ICBA's President, will join us on that panel. He has invited me to attend his conference ICBA Community Banking LIVE in Orlando. (Sound familiar? Imitation, flattery and all.) We work closely with our trade brethren as it always is a healthy exchange of views. You still have time to join us at the real CBA LIVE!

CBA Ed Funding Committee comes to Washington

Today, CBA's Education Funding Committee held its first in person meeting of the year at our world headquarters. In addition to Hill visits, the Committee set out plans for the year and met with Rohit Chopra, CFPB Student Loan Ombudsman and Director of the Office of Students, and Susan Torzilli, Program Manager for Student Loans and Debt Collection in the Bureau's Office of Supervision Policy.

Time with our Sponsors

We were delighted to spend time with Harland Clarke, a Diamond sponsor of CBA who visited our office on Tuesday. Thanks to Rick Lutz, VP of Major Account & Investment Services and Barbara Murnane, Regional VP of Major Account and Investment Securities Division for their time and great discussion.

Associate Member News

CBA welcomes Insight Financial Marketing, located in Woodbridge, VA, and Profit Insight, located in Mooresville, NC, as our 9th and 10th new Associate Members, respectively for FY 2015.

Lagniappe

Terry Jenkins has been named President of Key Private Bank, and will be responsible for KeyCorp's wealth management division, which includes the company's trust, investment, banking and wealth planning businesses. He succeeds Tim Swanson, who remains KeyCorp's Chief Investment Officer. Jenkins will report to E.J. Burke, Co-President of Key Community Bank. Prior to joining KeyCorp, Jenkins worked at BMO Harris.
 
Amy Hurd has been appointed Head of U.S. Bank's in-store and on-site banking division, overseeing the network of branches located inside retail centers, such as grocery stores and airports. She succeeds Chuck Stroup, who plans to retire this spring, after a 28-year career with the company.