STATE GOVERNMENT RELATIONS
2020 Legislative Session Kicks Off
The 2020 legislative session kicked off Monday and is moving at a fast pace. This year’s General Assembly is scheduled to finish by March 14, though activity through week one suggests that legislators should be able to finish their business a few days early. Healthcare, education and determining what to do with unexpected revenue collected by the state are the topics of highest priority this year. The IBA Government Relations team will be focused on topics that impact the financial services industry and our members.
FLD Day at the Statehouse
Register now for the FLD Day at the Statehouse on Feb. 10 at the Hilton Indianapolis Hotel & Suites. This free event will provide opportunities to network and learn more about grassroots advocacy and its importance to the banking industry. Attendees additionally will learn about the legislative process, see the Indiana Statehouse and have the opportunity to visit with legislators. FLD Day at the Statehouse is a great way to get engaged. For questions, contact Josh Myers at 317-333-7165.
IBA Legislative Briefing & Reception - It's Not Too Late to Register!
Register for the 2020 IBA Legislative Briefing & Reception, scheduled for Wednesday, Jan. 15 at the Hyatt Regency Indianapolis. As the first IBA grassroots advocacy event of the new year, this is a prime opportunity to get your bank involved in 2020. The evening will include an in-depth discussion of current legislative issues, an entertaining panel featuring WFYI’s Indiana Week in Review team and valuable networking time to connect with banking peers and Indiana legislators.
FEDERAL GOVERNMENT RELATIONS
OCC Names Regional Deputy Comptroller for Midwest
The Office of the Comptroller of the Currency has named Brian James as deputy comptroller for the agency's central district, which supervises 320 national banks and federal thrifts in Illinois, Indiana, Michigan, North Dakota, Ohio, and Wisconsin and parts of Kentucky, Minnesota and Missouri. James is a nearly-three-decade veteran of the OCC.
Brainard Floats Fed’s Alternative Ideas on CRA Modernization
Federal Reserve Governor Lael Brainard, the agency’s point person for the Community Reinvestment Act modernization process, has outlined the Fed’s approach to revising CRA rules and explained why the Fed did not join the notice of proposed rulemaking issued last month by the OCC and the FDIC. The Fed’s approach chiefly differs from the OCC and FDIC’s in how it measures CRA performance.
"We continue to believe that a strong common set of interagency standards is the best outcome," Brainard said in Washington, D.C. "By sharing our work publicly, we hope to solicit public input on a broader set of options for reform and find a way toward interagency agreement on the best approach… Given that reforms to the CRA regulations are likely to set expectations for a few decades, it is more important to get the reforms done right than to do them quickly." Her speech – which was not a formal regulatory proposal – came as the OCC and FDIC NPR was published in the Federal Register, making March 9 the deadline for public comments.
Specifically, Brainard said, the Fed recommends two tests, one for retail lending applicable to all banks and one for community development activities applicable to larger banks, wholesale banks and limited-purpose banks. These tests would include qualitative standards to allow more tailored performance metrics. This differs from the OCC and FDIC proposal, which would measure both the share of retail lending to low-to-moderate-income individuals and areas, as well as the impact of that activity and combine those measures into a "presumptive rating" that could be adjusted by examiners based on performance context and other factors.
Agencies Adjust CRA Asset-Size Thresholds
Federal regulators announced the annual adjustment to Community Reinvestment Act thresholds. Effective Jan. 1, the "small bank" or "small savings association" designation applies to institutions that, as of Dec. 31 of either of the prior two calendar years, had assets of less than $1.305 billion.
House Panel Releases January Hearing Schedule
The House Financial Services Committee has released a schedule of January hearings. Starting next week, the committee is slated to hold hearings on the Community Reinvestment Act, Financial Accounting Standards Board oversight, interest rate caps, mobile payments, and more.
Regulators Exploring Tools for GSE Recapitalization
Federal Housing Finance Agency Director Mark Calabria said his agency is working to help Fannie Mae and Freddie Mac recapitalize after exiting conservatorship.
At an event in Washington, Calabria said the government-sponsored enterprises could operate under a consent order that would allow them to continue raising capital after they reach the $45 billion in combined earnings allowed under their amended capital agreements, though nothing has been decided.
Calabria stressed that the recapitalization of the GSEs and their release is required by Housing and Economic Recovery Act, and that he is bound to enforce and comply with the statute.