Pub 1 2012 Issue 1

January/February 2012 9 Leading advocate for the banking industry in Kansas. T HE FINANCIAL INSTITUTIONS EXAMINATION FAIRNESS AND Reform Act (H.R. 3461) would take a major step toward a more balanced and transparent approach regarding how, and on what basis, decisions are made by the regulatory agencies in the examination process. The bill would also address some examiner decisions that have effectively and unnecessarily reduced the amount of capital available for increased lending — particularly to small businesses. ABA worked closely with bankers and the Kansas Bankers Association in raising issues that the Capito-Maloney bill would resolve as well as offering recommendations. You’ve told us that the reasons for certain decisions regu- lators make during the examination process have not been clear. You’ve also reported that some examiner decisions have effectively and unnecessarily reduced the amount of capital available for increased lending — particularly to small busi- nesses. This hurts your banks’ abilities to help local businesses grow and create jobs. The Capito-Maloney bill would address these concerns by requiring, among other things, more timely examination re- ports; more information about the facts the agency relied upon to make its exam decisions; and more precise, consistent and understandable classification standards for commercial loans. The legislation also would create a new, independent inter- agency ombudsman within the Federal Financial Institutions Examination Council to ensure the consistency and quality of all exams, and it would institute an expedited process for banks to appeal examination decisions without fear of reprisal. Working together, bankers, state associations and ABA have identified the problems and recommended a workable, practical solution. This is how we do things. We focus on legislation that is passable, is backed by solid, credible arguments, and will make a real difference for the industry. The Capito-Maloney bill certainly meets those tests. Now, we have to fight for it. (Feels good to be fighting for something, doesn’t it?) AMERICAN BANKERS ASSOCIATION MESSAGE Write to your representatives (click on the “Action Alert” icon on ABA’s home page a t www . aba . c om) a n d u r ge t h em t o c o - s p o n s o r t h e b i l l . And don’t forget to join us in Washington for ABA’s GR Summit March 19-21, where we will continue to advance our industry’s advocacy goa l s and p r i o r i t i e s . Fighting for Examination Relief We ’ r e u r g i n g b a n k e r s t o w r i t e t h e i r r e p r e s e n t a t i v e s a n d a s k t h em t o c o - sponsor the bipar tisan examination relief bill introduced by House Financial Ser vices F i n a n c i a l I n s t i t u t i o n s S u b c omm i t t e e Chairman Shelley Moore Capito (R-W.Va.) and Ranking Member Carolyn Maloney (D-N.Y.). Reach Frank Keating by E-mail at keating@aba.com . By Frank Keating