Pub. 6 2017 Issue 3

April/May 2017 5 l e a d i n g a d v o c a t e f o r t h e b a n k i n g i n d u s t r y i n k a n s a s T he American Bankers Association (ABA) and Independent Community Bankers of America (ICBA) recently called upon two Kansas bankers to help lead the charge for meaningful regulatory relief in a four-hour sit-down meeting with U.S. Treasury Secretary Steven Mnuchin and members of his team. Shan Hanes, President/ CEO of First National Bank of Elkhart and Steve Handke, President/CEO of Union State Bank of Everest were joined by ABA and ICBA staff and leaders along with a handful of community bankers from across the country for the meeting that focused on removing onerous and unnecessary regulations that are curbing economic activity in communities across the nation. Hanes, who currently serves on the ABA’s Agriculture and Rural Bankers Committee, highlighted the need for regulatory relief accommodations to ensure the availability of agricultural and rural commercial credit. Hanes specifically encouraged policy changes that would allow loans to be classified based on collateral, instead of purpose, and he expressed the need for an overhaul of appraisal standards and certification practices to address the shortage of appraisers in rural America. During a conversation with Hanes following the Treasury meeting, he informed KBA staff that he did his best to also stress the fact that: “Banks are no longer making credit decisions, we are being forced to make compliance decisions and that needs to change.” Handke, a 33-year community banking veteran, also encouraged Treasury officials to recognize the tough cycle that agricultural banks are currently experiencing. He shared his concern with regulators failing to recognize the unique nature of ag lending and the fact that it often takes more than one exam cycle (more than 18 months) for ag lenders and their customers to restructure loans and to make adjustments necessary to meet loan Shan Hanes Steve Handke KANSAS BANKERS PRESS TREASURY DEPARTMENT OFFICIALS FOR REGULATORY RELIEF By Doug Wareham, KBA EVP-COO performance standards. Handke also mentioned the fact that during the meeting Treasury officials indicated they had been directed by the White House to respond with a list of regulatory relief initiatives that could be dovetailed with President Trump’s Executive Order focused on easing burdens on the financial industry. Handke shared this closing comment: “I think all Kansas bankers should be pleased that the highest levels of the Treasury Department are working to identify meaningful reg relief for community banks. It was an honor to be part of this very important meeting.”