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Call Report
ICBA Urges Agencies to Exempt Community Banks from Call Report Additions
ICBA repeated its call for regulators to exempt financial institutions with total consolidated assets of $10 billion or less from expanded call report requirements. In a comment letter to the agencies, ICBA raised questions about the validity and usefulness of the information requested through the proposed call report changes.

The agencies proposed call report changes that would expand reporting of consumer deposit account balances when they are intended for individuals for personal, household or family use. Under the proposal, financial institutions with total assets of $1 billion or more would be required to begin reporting consumer deposit service charges based on overdraft fees, monthly maintenance charges and consumer ATM fees.

ICBA wrote that the proposal is the latest in a long line of new reporting burdens for community banks caused by policies directed at much larger financial institutions that offer commoditized financial products. The association said the expanded reporting detracts from the safety and soundness reporting that regulators, depositors and other stakeholders use to determine a bank’s overall health.

Additionally, ICBA wrote that the types of accounts specified for reporting under the proposal is unclear, especially for community banks.  As relationship lenders, community banks often tailor for their customers financial products that may not be easily categorized based on the agencies’ descriptions, ICBA noted. Read ICBA Comment Letter.


Too-Big-To-Fail
ICBA Generally Supports FDIC’s Megabank Resolution Strategy
ICBA said it generally supports the FDIC’s proposed “Single Point of Entry” strategy for resolving systemically important financial institutions. In a comment letter to the agency, ICBA wrote that the strategy would help preserve financial stability and promote market discipline, but the association recommended significantly higher capital and unsecured debt requirements for SIFIs.

The strategy implements the FDIC's authority under the Dodd-Frank Act to place SIFIs into an FDIC receivership process if no viable private-sector alternative is available to prevent default. Because most SIFIs are organized under a holding company structure, the FDIC is proposing that the resolution take place at the holding company level to allow subsidiaries to remain operational during a resolution.

In its comment letter, ICBA reiterated its support for the Terminating Bailouts for Taxpayer Fairness (TBTF) Act (S. 798), introduced by Sens. Sherrod Brown (D-Ohio) and David Vitter (R-La.). The act would require the largest banks to hold leverage equity capital of at least 15 percent of total assets. ICBA also said that the FDIC should clarify that Orderly Liquidation Fund resources will be used only in emergency cases.

Additionally, the association noted that even after the banking agencies have implemented all of the enhanced prudential standards for SIFIs and the orderly liquidation authority, the too-big-to-fail subsidy will most likely still exist until the large banks are forced to downsize and are restricted to core banking activities. Read ICBA Comment Letter.


Farm Credit
Farm Credit Administration Holding Another Secret ‘Public’ Meeting
The Farm Credit Administration, which regulates the Farm Credit System, is scheduled to hold another secret public meeting. Scheduled for tomorrow, the meeting will cover the factors influencing consolidation in the FCS and the potential impact on its mission.

ICBA and the American Bankers Association sent letters to the chairmen and ranking members of the House and Senate agriculture committees and to the FCA raising several objections. In the joint letter, the associations objected to the lack of transparency surrounding the first public meeting and FCA’s refusal to release a transcript of the proceedings. ICBA and ABA said the FCA’s secret meetings by invitation only to members of the public appear to violate the Government in Sunshine Act, by which all federal agencies must operate. 

The letter also objects to the lack of transparency and details surrounding this week’s secret public meeting. In addition to requesting a transcript of both meetings, the letter pointed out that the second secret meeting agenda lists other non-FCA federal agency representatives on the agenda while limiting other members of the public from attending. Read the FCA Meeting Agenda. Read the Joint Letter.



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Too-Big-To-Fail
Fed Issues New Megabank Prudential Standards
The Federal Reserve Board approved a final rule establishing enhanced prudential standards for large U.S. bank holding companies and foreign banking organizations. The standards include liquidity, risk management and capital. The rule also requires foreign banking organizations with a significant U.S. presence to establish an intermediate holding company over U.S. subsidiaries to facilitate consistent supervision and regulation of U.S. operations.


Convention
Use Social Media to Get Free Ticket to 2015 ICBA Convention
ICBA is giving away a free convention registration to the 2015 ICBA Community Banking Live convention in Orlando, Fla.

Follow these steps for your chance to win:
A. Be a Twitter user or sign up for Twitter at www.twitter.com.
B. Follow us @ICBA.
C. Tweet during the 2014 ICBA Community Banking Live convention using the #ICBALive14 hashtag.

The deadline to enter is noon (Eastern time) Thursday, March 13. The winner will be announced on Friday, March 14, via ICBA’s Twitter handle. For contest specifics, check out the social media section on ICBA’s convention website.

New to Twitter? Check out the “how-to’s” section of the convention website and the list of convention Twitter handles to follow. Learn More.



Poll
Take This Week’s Quick Poll
Take this week’s Quick Poll on recovering defaulted debts, and view results from the previous poll on a proposal that the U.S. Postal Service enter the financial services industry. View the Archive.


Education
ICBA Audio Call Covers What’s Working and What’s Not in Mortgage Reform
An ICBA audio conference scheduled for next week will focus on the community bank challenges, misconceptions and opportunities surrounding new mortgage reforms. “Mortgage Reform: What’s Working and What’s Not,” scheduled for 11 a.m. (Eastern time) tomorrow, will provide practical tips and best practices to ensure community banks are on the right track as they adapt to the new regulatory environment. Register Online.


Products and Services
Convention Workshop Features Growing Noninterest Income and Relationship Breadth
Investment Centers of America, an ICBA Preferred Service Provider for retail brokerage services, will be presenting at the upcoming ICBA Community Banking Live 2014 convention in Hawaii. The topic of choice for upper management audiences will be “Growing Noninterest Income and Relationship Breadth.” The workshop will benefit community bankers looking to position their program to grow noninterest income, broaden customer relationships and leverage their brand. Overall takeaways include integrating techniques to manage repayment risks on loan portfolios, enhancing your business value proposition and leveraging your local brand awareness. Learn More.











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