Tennessee Bankers

This Week Newsletter

May 07, 2018 - Issue No. 1818

House Leadership Expects S. 2155 to Pass in May

House Majority Leader Kevin McCarthy (R-Calif.) said last week that he expects the House to pass S. 2155, the bipartisan financial regulatory reform bill, sometime in May. “I think you are within a month of getting it . . . done,” McCarthy said. “At the end of the day there will be a bill at the president’s desk.”

House Speaker Paul Ryan (R-Wis.) also expressed a similar view, saying that "we're a few weeks away" from passing financial regulatory reform into law. The Senate passed the bill by a broad bipartisan majority vote of 67-31 in March.

Commissioner Gonzales Reappointed Chairman of FFIEC State Liaison Committee

Tennessee Commissioner of Financial Institutions Greg Gonzales was re-elected chairman of the State Liaison Committee of the Federal Financial Institutions Examination Council, effective May 1. The chairman of the five-member State Liaison Committee serves a one-year term representing the perspectives of state banking agencies on the group of federal regulatory bodies. This will be Gonzales’s second term as chairman. 

As Chairman of the SLC, Gonzales is one of six voting members of the FFIEC—the others are heads of the FDIC, OCC, NCUA and CFPB and a member of the Board of Governors of the Federal Reserve.

Retiring General Assembly Members Win Local Elections

Several retiring state senators and representatives won primary bids for positions in their local elections last Tuesday, May 1. Among those are Senator and GOP Caucus Chairman Bill Ketron who won the GOP nomination for Rutherford County Mayor and Senator and Minority Leader Lee Harris who won the Democratic nomination for Shelby County mayor.

In the Franklin County Mayor’s race, Representative David Alexander of Winchester won the GOP primary. Rep. Marc Gravitt of East Ridge won the GOP nomination in Hamilton County’s register of deeds race. 

Rep. Sherry Jones of Nashville lost her bid in the Democratic primary for Davidson County Juvenile Court Clerk. Rep. Roger Kane of Knoxville also gave up his House seat to make an unsuccessful bid for Knox County Clerk.

CSBS Lawsuit Challenging OCC Fintech Charter Dismissed

A federal judge dismissed a Conference of State Bank Supervisors lawsuit challenging the OCC’s proposal to grant special-purpose bank charters to financial technology companies. The judge said the complaint is premature because the OCC has not reached a decision on the proposal.

Banking trade groups supported the lawsuit and plan to continue calling on the OCC to request specific congressional authorization before proceeding with any fintech charter. The groups also believe any new chartered institution should be subject to the same supervision and regulation required of community banks.

Conservative Policy Groups Urge Congress to Revisit Tax Exemption for Large CUs

The National Taxpayers Union and several other conservative public policy groups last week urged Senate Finance Committee Chairman Orrin Hatch (R-Utah) and the committee to revisit the tax exemption enjoyed by large credit unions. The letter came as the credit union tax advantage is getting more scrutiny on Capitol Hill.

Earlier this year, Hatch pressed the NCUA for explanations of its actions that have substantially loosened restrictions on credit unions, and this week he asked the IRS to consider requiring large credit unions to file Form 990, which most tax-exempt organizations do and would enhance transparency into credit unions’ activities.

The groups noted that many credit unions remain focused on their core missions but that “some of the larger institutions more closely operate as regular banks than credit unions.” Read the letter.

Bankers Urged to Submit Post-Exam Surveys

Under the Trump administration, changes have been coming to the federal banking agencies—including examinations. To help ensure that regulatory examinations are fair and that examiners apply consistent standards, TBA, the ABA, and other states’ bankers associations are encouraging the CEOs from every bank to participate in the Regulatory Feedback Initiative by completing a post-exam survey after each safety and soundness and compliance examination.

The goal is to aggregate nationwide exam experiences, share results with regulators, generate banker-requested reports, and pursue fair and consistent application of all regulations, rules and regulatory guidance. While bankers are generally more positive about today’s regulatory environment, feedback on exam experiences is still important to identify supervisory and examination issues of concern.

Banks that have yet to complete a survey, either for a safety and soundness or a compliance examination, are urged to do so by May 31. The survey is anonymous and participants are guaranteed data confidentiality. Take the survey. For more information, contact Stacey Langford.

Register Now for The Universal Banker and Save

With reduced in-branch transactions and customer visits and an increase in technology, less traditional teller functions are needed. No longer can a frontline team member say: “It’s not my job!” Today’s frontline team is shifting from traditional singular positions such as tellers, new account representatives, financial service representatives, etc., to a multi-tasking, “universal” personal banker.

In addition, today’s customer base is shifting from the traditional visit to the bank twice a week to a quick response, electronic banking relationship.

This seminar’s focus is on the essentials for today’s banking environment to develop the universal branch, get the right team on board, provide exceptional service, make referrals, and build profitable relationships from millennials to baby boomers.

Click here to register.

Compliance Alliance Hot Topic Question

Not just a compliance solution, Compliance Alliance mitigates your organizational consumer and federal compliance risk while lifting the burden of your day-to-day regulatory compliance efforts. Learn more by attending a free weekly live webinar demo Tuesday, May 8 at 10:00 am CT or Thursday, May 10 at 1:00 pm CT.

Q: Does the bank need to expand our assessment area for CRA purposes when LPOs are opened in new counties or MSAs?
A: No, the bank does not need to automatically expand its CRA assessment area, because LPOs are not deposit taking facilities. However, when LPOs are outside of the bank's current assessment area, loan production can affect the bank's inside/outside ratio. If the ratio of loans outside of the bank's assessment area exceed the loans inside the assessment area, then the bank should consider whether it should open a branch and adjust the assessment area.

Associate Members’ Appreciation Picnic May 18

TBA’s Associate Members add a great deal of value to the association providing in-depth industry knowledge, critical support for TBA professional development programs and conferences, and partnerships that help our banks succeed. As a thank you, this casual, open-house style luncheon at the TBA Barrett Training Center in Nashville offers a chance to eat, meet, and mingle with the TBA team, and squeeze in some friendly rounds of corn hole. To RSVP your plans to attend, please email T'Lanie Luu or call 615-244-4871 by close of business Tuesday, May 15.

TBA On the Road

  • Stacey Langford travels to Middle and West Tennessee to visit member banks.
  • Senior Lenders meet in Nashville for their peer Forums.
  • Banking association staff from around the country participate in the Synergy Coalition Summit hosted in Nashville with sessions at the TBA Barrett Training Center. Synergy, run through Oregon Bankers Association, powers the nationwide Office Depot and Harland Clarke state association endorsed partnerships.

See where TBA goes while "on the road" by following @TNBankers.

In this Issue

Past Editions