SDBA eNews: January 5, 2017

In This Issue

Secure Banking Solutions Changes Name to SBS CyberSecurity


Secure Banking Solutions has changed its name to SBS CyberSecurity.

The change is a result of the growth and transformation of the cybersecurity industry and the threats facing the nation. The demand from clients outside financial services has grown, creating opportunities for SBS CyberSecurity to assist all industries affected by increasing cyber crime.

SBS CyberSecurity has deep roots in the financial services industry and will continue to provide industry-leading cybersecurity products, services and education to financial institutions across the country. Learn more.


SDSU to Host Presentation on the Minneapolis Plan to End Too Big To Fail


Ron Feldman with the Federal Reserve Bank of Minneapolis will present "The Minneapolis Plan to End Too Big To Fail" at South Dakota State University in Brookings on Feb. 13.

Feldman is executive vice president and senior policy advisor at the Federal Reserve Bank of Minneapolis. He is the senior officer for supervision, regulation and credit, where he oversees the consumer and safety and soundness supervision of about 75 state member banks and about 500 bank holding companies.

Feldman is also responsible for the bank’s lending to Ninth District depository institutions and managing the resulting credit risk.

The presentation will be held at 7 p.m. at the SDSU Performing Arts Center, 1601 11th St. The free event is sponsored by the SDSU Department of Economics. For more information, contact Dr. Joseph M. Santos.


 

Question of the Week

Does ESIGN consent and disclosures apply to business customers?

Answer: No, ESIGN's consent to electronic records does not apply to business entities (e.g. corporations, partnerships, associations, etc.). It applies to consumers, which is defined as " an individual who obtains, through a transaction, products or services which are used primarily for personal, family, or household purposes, and also means the legal representative of such an individual." It's still a good practice to have some kind of agreement in place with business customers for electronic delivery of documents.

Not a Compliance Alliance member? Learn more about membership with Compliance Alliance by attending one of our live demos:

Compliance rules and regulations change quickly. For timely compliance updates, subscribe to Compliance Alliance’s email newsletters.

Compliance Alliance offers a comprehensive suite of compliance management solutions. To learn how to put them to work for your bank, call 888.353.3933 or email.


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Questions/Comments

Contact Alisa DeMers, SDBA, at 800. 726.7322 or via email.

Registration Open for SDBA State Legislative Day

 
Photo of State CapitolThe SDBA 2017 State Legislative Day on Feb. 8 in Pierre is your opportunity to stay up-to-date on both state and federal legislation which could affect the banking industry and to visit with state legislators.

The day will include a luncheon and banking legislation review, discussion on the new administration in Washington and what it may mean for business and banking, a chance to visit with legislators at the State Capitol, and an evening reception with state legislators and state constitutional officers. The Governor has also been invited to speak.

This year's featured speaker is Jennifer Duffy, senior editor for The Cook Political Report where she is responsible for U.S. Senate and governors races. Founded in 1984, The Cook Political Report provides analyses of presidential, U.S. Senate, House and gubernatorial races. The New York Times has called The Cook Political Report “a newsletter that both parties regard as authoritative.”

See the full agenda and register.


SDDA Offers Ag Mediation and Finance Counseling


As renewal season approaches, the South Dakota Department of Agriculture (SDDA) reminds lenders of its Farm Loan Mediation Program. The program is designed to provide assistance to borrowers and creditors who seek to use mediation as a method for resolving credit disputes. 

South Dakota Codified Law requires a creditor to go through mediation before foreclosing on an agricultural debt of more than $50,000. If debt is less than $50,000, debtors and/or creditors may also request voluntary mediation. 

“Ideally, if we can avoid a mandatory mediation, we would like to do that, and we encourage lenders to visit with their customers if they can see a credit issue on the horizon,” said Nina Fromm, SDDA mediation specialist. “Perhaps a voluntary mediation and working with a finance counselor one-on-one can help that borrower turn the corner and prevent a mandatory mediation.” 

Once mediation is requested and accepted, confidential financial counseling services are offered free of charge during the mediation period to prepare the parties for mediation.  SDDA contracts with private mediators and finance counselors which are located across the state, allowing mediation sessions to be conveniently scheduled in an area near the debtor/creditor.

A request for mediation must be received by the department to begin the process. Mediation fees are minimal and paid by all parties to the mediation.

For more information on mediation and finance counseling, contact SDDA at 605.773.5436. Learn more.


Nichols Outlines Top Legislative Priorities for 115th Congress


In a letter to congressional leadership yesterday, ABA President and CEO Rob Nichols outlined several pro-growth policy priorities “that will help our nation’s economy and communities thrive.”

These policy goals include tailored regulation, more flexible mortgage rules, a sustainable housing finance system, flood insurance reform, a level playing field for all kinds of financial services providers, tax reform, small business lending support, student debt relief, stronger data security standards, an end to price caps on interchange fees and a more sensible regulatory posture.

“ABA is calling on the [Trump] administration, Congress and bank regulatory agencies to work in a bipartisan manner to pursue legislative changes that will keep financial institutions strong and capable of fulfilling their mission,” Nichols said. Read the letter.

ABA leaders will present a free webinar for bankers on Tuesday, Jan. 10, on what the industry can expect from Washington in the next year. Nichols will be joined by ABA EVPs James Ballentine and Wayne Abernathy to outline opportunities on regulatory relief, tax reform and other policy priorities. Register for the webinar.


Regulators Streamline Call Report for Small Banks

 
The federal regulatory agencies last Friday finalized a new, streamlined Call Report with simplified instructions for banks with less than $1 billion in assets and no foreign offices. The new Call Report reduces the total number of pages from 85 to 61 as a result of removing approximately 40 percent of the required data items. The new Call Report takes effect with the March 31, 2017, filing date.

ABA has long advocated for a simplification of the Call Report and has helped over the past several years to facilitate conference calls with community bankers and regulators to explain Call Report burdens and offer suggestions for streamlining it. Read more.


White House Sanctions Russia in Wake of Cyber Activity


President Obama last week announced additional sanctions on Russia in response to cyber activities that targeted the 2016 elections. The president approved an amendment to an existing executive order that authorizes sanctions on individuals or entities that engage in cyberattacks that seek to disrupt critical infrastructure. The amendment specifically addresses those who tamper with, alter or misappropriate information with the intent to interfere with electoral processes or institutions.

Targeted by the sanctions were nine individuals and entities, including two Russian intelligence agencies, four individual intelligence officers and three companies that provide material support to one of the agencies. The administration also said that it would shut down two Russian compounds in the U.S. used for intelligence-related purposes and declared 35 Russian intelligence operatives “persona non grata.” In addition, the FBI and Department of Homeland Security have released declassified information on Russian civilian and military cyber activity to help partners at home and abroad detect and disrupt Russian cybercriminal activities.

Obama added that in addition to these sanctions, the administration “will continue to take a variety of actions at a time and place of our choosing, some of which will not be publicized.” Read more.


Scholarships Available for GSB at Wisconsin

 
Since 1945, the Graduate School of Banking at the University of Wisconsin-Madison (GSB) has helped develop banking leaders through a program of advanced management education. The 2017 school session will be held July 30 to Aug. 11 at the University of Wisconsin-Madison.

Prochnow Educational Foundation/SDBA scholarships will be awarded to two South Dakota bankers attending the 2017 Graduate School of Banking program. The scholarship amount is $1,300 for each year of the student’s attendance (approximately one-third of the annual tuition fees), for a total value of $3,900.

This scholarship is for people who will be entering their first year at GSB. The deadline to apply for the scholarship is May 1. A separate application for the school must be completed via the GSB website.

In addition, one scholarship to attend GSB’s Human Resource Management School will be awarded to a South Dakota banker. The recipient will receive a $925 discount on registration. The school, which will be held March 26-31, is designed specifically for HR professionals in the financial industry and addresses today’s most critical HR issues. The deadline to apply for the scholarship is Feb. 10.

Learn more about both scholarships and apply.