Registration Now Open for SDBA 2019 Bank Technology Conference

Technology Photo The role of an IT professional is ever-changing, especially in today’s environment. The SDBA Bank Technology Conference is designed to provide support as you keep on top of technology trends and scams, navigate the business of banking, and build and sustain your bank’s technology strategy.

The SDBA will hold the 2019 Bank Technology Conference on Sept. 11 in Sioux Falls, with a reception the evening of Sept. 10. The conference will be held at the Hilton Garden Inn Sioux Falls South. This conference will provide attendees with an opportunity to learn from industry experts, network with other IT colleagues, and visit with exhibitors to see and experience the latest in products and services.

Topics will include: how the hackers hack humans, how to get great results on IT audits, why cybersecurity matters and how FS-ISAC can help, weathering the storm of cloud security, cybercrime and the Dark Web, building a right-sized cyber governance program, skimming/card cloning, and a roundtable discussion on hot button bank technology issues and to share best practices.

ABA: Legislation Would Degrade Credit Reports

In a memo to members of the House Financial Services Committee yesterday, ABA expressed opposition to several bills that would amend the Fair Credit Reporting Act and make changes to the credit reporting process. ABA opposed three bills up for consideration today, including: H.R. 3622, the Restoring Unfairly Impaired Credit and Protecting Consumers Act; H.R. 3642, the Improving Credit Reporting for All Consumers Act; and H.R. 3621, the Student Borrower Credit Improvement Act.

ABA noted that as proposed, these bills “would make credit reports less accurate and potentially seriously [diminish] the value of credit reports that are the foundation of a fair and fact-based credit market. Ultimately, they could threaten the consumer lending market by reducing access to credit.

The association also noted that several other bills, including H.R. 3614, the Restricting Use of Credit Checks for Employment Decisions Act; H.R. 3618, the Free Credit Scores for Consumers Act; and H.R. 3629, the Clarity in Credit Score Formation Act, would benefit from further examination and input from stakeholders. Read the memo.

ABA Urges Restraint on Debt Limit Change for Chapter 12 Bankruptcies

In a comment letter sent yesterday, ABA warned the House Judiciary Committee of the unintended consequences of raising the current debt limit for Chapter 12 bankruptcy filings from approximately $4.3 million to $10 million. The proposed debt limit changes are part of H.R. 2336, to be considered by the committee during a hearing scheduled for today.

Chapter 12 bankruptcy was designed to help farmers avoid foreclosure or liquidation of their farms by reorganizing their debts—and it includes expansive rights for debtors that do not exist in other chapters of the bankruptcy code. ABA pointed out that raising the Chapter 12 debt limit could increase the cost of borrowing for farmers and ranchers and reduce the overall availability of credit.

The association also noted that the current debt limits under Chapter 12 are already indexed to inflation and are adjusted accordingly every three years. Rather than make a significant one-time increase as the bill proposes, ABA suggested that the three-year adjustment could be made annually. Read the letter.

Agencies Finalize Volcker Rule Exemption for Community Banks

The five federal financial regulatory agencies on Tuesday finalized a rule implementing a section of the S. 2155 regulatory reform law that grants an exclusion from the Volcker Rule for certain community banks. The rule will take effect upon publication in the Federal Register.

To qualify for the exemption, community banks and their controlling entities must have $10 billion or less in total consolidated assets and total trading assets and liabilities equal to 5% or less of total consolidated assets.

As called for by ABA in its comment letter, the agencies confirmed that a bank or savings association seeking to determine its exclusion may rely on its most recent Call Report for its consolidated assets and total trading assets and liabilities. The agencies also confirmed that securities appropriately classified as available-for-sale and excluded from trading assets on the call report will not count toward an institution’s trading assets and liabilities threshold. View the final rule. For more information, contact ABA’s Tim Keehan.

OCC Issues Resources on HOLA Flexibility Final Rule

As the OCC’s long-awaited HOLA flexibility rule took effect last week, the agency issued several documents to help bankers understand the new rule and provide guidance to institutions wishing to elect to become “covered associations.”

Under the final rule, federal savings associations with total consolidated assets of $20 billion or less as of Dec. 31, 2017, may at any time elect to become covered associations. Making this election will remove portfolio asset restrictions that have limited some banks’ ability to respond to changing needs in their communities. It will also subject those institutions to the same duties, restrictions, penalties, liabilities, conditions and limitations that apply to national banks without requiring a charter conversion.

The OCC issued a set of FAQs about the final rule, as well as a document outlining key differences among requirements for national banks, federal savings associations and covered savings associations. The agency also published a chart summarizing the powers of national banks and federal savings associations.

Read the final rule and access the FAQs.
Read the comparison document.
View the chart.
For more information, contact ABA’s Bob Davis.

Podcast: How Diversity and Inclusion Create a 'Sense of Belonging'

For Monica Sylvain, chief diversity officer at Louisiana-based IberiaBank, a focus on diversity, equity and inclusion (or DE&I, as it's increasingly widely known) starts with building community. “It’s important to lead with the ‘I,’ or ‘inclusion,’” she says on the latest ABA Banking Journal Podcast, “having a sense of fairness, and [having] your employees feeling like they have a sense of belonging.” On the podcast, Sylvain discusses IberiaBank's approach to DE&I, including:

Having a DE&I council comprising a broad cross-section of employees at all levels of the organization. “That group is really helping us to think through the things that are top of mind for our associates when they think about inclusion, when they think about equity, when they think about diversity.”
Educating the bank’s leadership team—and its employees—on recognizing and understanding unconscious bias. “All of us as human beings have unconscious or implicit bias. [We] make snap judgment decisions,” she explains. “If you look at the neuroscience, we do it in nanoseconds.”
The importance of including supplier diversity, as well as employee diversity, in the bank's DE&I framework.

Listen to the episode.

Hotel Room Deadline Nearing for SDBA 2019 Ag Credit Conference

If you plan to attend the SDBA's 2019 Agricultural Credit Conference and haven't yet reserved a room, the hotel block will be released on July 15. This year's conference, which was originally scheduled for April, will be held on Aug. 14-16 in Pierre at the Ramkota Hotel & Conference Center.

This conference focuses on the unique needs of ag bankers and the need for quality information and training to better serve their customers. The SDBA has lined up speakers on a variety of timely topics to help ag bankers navigate through challenging times. Experienced and new ag lenders, as well as CEOs, will all benefit from this conference.

See the full agenda and register to attend. To reserve a hotel room, call the Ramkota Hotel at 605.224.6877.

FDIC Releases Sections of Applications Procedures Manual

As part of its ongoing effort to increase transparency, the FDIC yesterday released several sections of the manual it uses to review and process applications, notices and other requests submitted to the FDIC. Additional sections of the manual will be released over time. The manual does not establish supervisory requirements and is not industry guidance. Learn more.

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.