Pub 7 2018 Issue 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 6 NEW AGENCY HEADS CHANGING THE TONE IN WASHINGTON, D.C. P RESIDENT DONALD TRUMP TOUTED A host of promises on the campaign stump in 2016, including assurances he would loosen the federal government’s regulatory stranglehold on the U.S. economy and specifically the financial services (banking) sector. That promise is now being acted upon by a new set of federal banking regulators that seem intent on finding a balance between safety and soundness, consumer protection and a strong, vibrant economy. Last month, a contingent of 38 Kansas bankers accompanied by five KBA staff members heard first hand from the newly minted leaders of the Federal Deposit Insurance Corporation and the Office of the Comptroller of the Currency that a regulatory reset is needed to reduce reg burden and to provide community banks with the flexibility they need to serve their customers. Those same regulators expressed specific support for modernizing banking regulations ranging from a complete overhaul of the Community Reinvestment Act (CRA) to updating anti-money laundering regulations. Comptroller Joseph Otting specifically assured bankers present that the OCC has as its top priority addressing capital levels that will be tailored based on bank size. He also indicated the OCC will provide guidance that will allow banks to re-enter the small dollar consumer lending market. According to current KBA Chairman Ron Johnson (President/ CEO of Community National Bank of Seneca), “We witnessed a new tone from the chiefs of the OCC and FDIC during our recent visit to Washington, D.C. I appreciate the fact that Comptroller Otting has a banking background and he clearly recognizes the fact that we have outdated regulations, including the Community Reinvestment Act. I was equally pleased to learn that FDIC Chair Jelena McWilliams seems intent on achieving a tailored framework for regulatory oversight that will help preserve the community bank model. We invited Chairman McWilliams to visit community banks in Kansas and she accepted that invitation. That is very promising.” In addition to meetings with the FDIC and OCC, Kansas bankers also met with representatives of the Bureau of Consumer Financial Protection (BCFP) and expressed concerns over the confusion surrounding HMDA reporting as a result of the passage of S 2155, the lack of consistent guidance and interpretations provided on mortgage lending rules enforced by the agency and the need to customize mortgage regulations to fit the size of loans being made and the size of the institutions making the loan. Additionally, the KBA banking contingent marched on Capitol Hill, visiting each member of the Kansas Congressional Delegation. Bankers thanked Senator Moran, Senator Roberts and our four U.S. Representatives for their support of the Tax Cuts and Jobs Act (HR 1) and the Economic Growth, Regulatory Relief and Consumer Protection Act (S 2155). Other topics stressed during office visits included the Farm Bill, data protection and breach notification standards, modernizing bank secrecy and money laundering laws and eliminating Jamie Inglett (First Security Bank, Overbrook) and her husband, Ricky (left) chat with Kent Needham (First Security Bank, Overbrook) and his wife, Terry. Congresswoman Lynn Jenkins visits with members of the BLOK class and Federal Affairs Committee. KBA Chairman-elect, Chris Donnelly (Bank of the Prairie, Olathe) shares his views with the FDIC staff. Federal Affairs Committee member Sara Girard (Central National Bank, Topeka) poses a question to FDIC Chairwoman Jelena McWilliams and her staff team. Tanna Thompson (left) and Kyle Campbell (center), both with Astra Bank in Abilene, visit with Will Ruder, chief of staff for Senator Jerry Moran. Steven Suellentrop (Legacy Bank, Wichita) seeks insight from FDIC Chairwoman Jelena McWilliams. 2018 FEDERAL AFFAIRS COMMITTEE ADVOCACY TRIP