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Shared Values Bring Shared Success

 

2018 Was a Decisive Year in Community Banking Advocacy

By Rebeca Romero Rainey

Community bankers, you outdid yourselves in 2018. Amid rapid industry and technological changes, you held steadfast to the values of community banking and advocated for the customers and communities you serve.

Because of this shared commitment to further local economic prosperity, ICBA and the nation’s community banks achieved numerous meaningful advocacy successes that will prove beneficial for many years to come.

As we near the end of this significant year in community banking, it is worth taking a moment to look back and reflect on what we’ve achieved together.

Reducing Tax and Regulatory Burdens

On the heels of generational tax reform signed into law at the end of 2017, ICBA and community banks achieved substantial regulatory relief with the Economic Growth, Regulatory Relief, and Consumer Protection Act (S. 2155). Signed after years of unwavering community banker advocacy, the landmark law advances numerous policies from ICBA’s Plan for Prosperity to unravel many of the regulatory burdens that community banks face every day.

S. 2155 includes provisions simplifying mortgage, capital, exam and call report requirements. While more work remains to be done on these and other reforms, this historic law is the culmination of a multi-year ICBA effort to further tier regulations to the size, risk, and business model of community banks.

Environmental Improvement

The swift implementation of S. 2155 has been aided by an improved regulatory environment. New regulators have worked to instill a culture of transparency and accountability at their agencies, while incoming Federal Reserve Board Governor Michelle “Miki” Bowman will prove to be an invaluable presence as she fills the ICBA-advocated board seat dedicated to individuals with community banking experience.

The improved environment has already led to tangible pro-community bank reforms. Regulators this year eased commercial real estate appraisal mandates, proposed phasing in the day-one impact of the Current Expected Credit Loss accounting standard, reduced disclosure requirements for publicly held community bank holding companies, and granted exceptive relief from beneficial owner requirements.

Supporting Small Business

Meanwhile, the pro-community bank agenda in Congress has extended to the Small Business Administration. Among its reforms, the bipartisan Small Business 7(a) Lending Oversight Reform Act stabilizes 7(a) program funding by allowing the agency to lift the overall cap on general business lending by up to 15 percent if the cap will be reached, as it was in prior years. This measure will go a long way in helping community banks continue to serve their small-business customers.

These are just a few of the many highlights of what made 2018 a memorable year in community banker advocacy. But as we community bankers know, there is always more that can be done to help our banks, our customers and communities thrive. We will press onward in 2019 by:

  • supporting final passage of a five-year farm bill,
  • maximizing the benefits of reforming the Bank Secrecy Act and Community Reinvestment Act,
  • ·opposing the expansionist agenda of credit unions and the Farm Credit System,
  • building on withdrawn industrial loan corporation applications to ensure regulatory consistency at tech companies,
  • passing a legal safe harbor for banking cannabis businesses,
  • advocating a Federal Reserve role in faster payments, and
  • promoting pro-community bank housing-finance reform.

As I finish my first year as ICBA CEO, I am proud and humbled to pursue ICBA’s mission of creating and promoting an environment where community banks flourish. Alongside the nation’s community bankers and our affiliated state associations, I look forward to continuing our meaningful work in 2019.

Thank you for your membership and, most of all, for the work you do every day to help your communities flourish. I wish you a happy holiday season and a prosperous new year.

Rebeca Romero Rainey is president and CEO of the Independent Community Bankers of America.