ABA Banking Journal - August 2014 - (Page 4)
BY JEFF PLAGGE
Determined, not defeated
IMPORTANCE of staying
engaged, being positive,
and remaining relevant"
President and CEO,
Northwest Financial Corp.,
Arnolds Park, Iowa
ABA BANKING JOURNAL
ne privilege of being ABA chairman is the opportunity to talk with
thousands of bankers at ABA and
state association meetings.
It gives me a chance to tell bankers
what ABA is working on and get their
input, and to ask for their support in
reaching out to members of Congress.
It's also an opportunity for me to hear from
the bankers about what is happening in
their banks and their communities, and
how public policy made in Washington,
D.C., directly affects them.
Let me share with you some of what
I've been hearing. I'm confident you'll
recognize the issues.
* The top issue I hear about is mission creep by credit unions and the
Farm Credit System, along with their tax
subsidies. Members appreciate ABA's
efforts to call Congress' attention to both
of these problems. And they want the
public to know that both credit unions
and the FCS have deliberately drifted too
far from their original missions.
* Everyone is feeling the impact of the
new mortgage rules. The new requirements on mortgage servicing rights are
having a negative impact on consumers,
and are forcing banks out of the mortgage
servicing business. I think it is part of
the reason we are seeing a slower than
expected recovery in the housing sector.
* The Basel III capital buffer rules are
hurting Subchapter S banks.
* The sheer volume of new rules and
regulations are affecting day-to-day bank
operations. They are virtually impossible
to implement at almost all banks-particularly at community banks.
* Our members appreciate the progress
that ABA-in partnership with our state
bankers associations-has made on issues
such as the Volcker Rule's treatment of
collateralized debt obligations and trust
preferred securities, flood insurance, and
Basel III relief for community banks. And
they welcome the bills in the House of
Representatives that would provide regulatory relief. They know we've captured
Congress' attention, and while they understand that gridlock permeates Congress,
bills have also been introduced to address
the patent-troll issue and provide for a
federal mutual bank charter.
Bankers do more than just talk about
the challenges they face. They listen.
Here are the messages that are really
resonating with our members and others:
* Focus on those things that unite
us-issues on which 80% of the bankers
agree-such as refinements to the DoddFrank Act, changes to the mortgage rules,
an end to the credit union and FCS tax
subsidies, and community bank regulatory
relief. Unity is the key to progress.
* The payments system is vitally important to our industry and to the safety and
security of our customers' transactions.
We must be fully engaged on this issue.
* It's time to get back to the business of
banking. Bankers understand the importance of staying engaged, being positive
about our industry, and remaining relevant
to meet our customers' changing needs.
Meeting with our bankers is the best
way to take the measure of our industry.
Despite the obstacles, bankers are
determined, not defeated. They are
dedicated to serving their customers
and their communities. While they face
many challenges, they are up to those
challenges. They welcome ABA's work
on their behalf, and show their support
through thousands of messages they send
to Congress on key banking issues.
Table of Contents for the Digital Edition of ABA Banking Journal - August 2014
Why HCE could be a big payment plus for banks
Rethinking the branch experience
Social media success not all about "followers"
Around the ABA
ABA Banking Journal - August 2014