STATE GOVERNMENT RELATIONS
IBA Legislative Briefing & Reception
Register for the 2020 IBA Legislative Briefing & Reception, scheduled for 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
IBA Annual Washington Trip - July 26-28
Mark your calendars for July 26-28 and join us next year for this important IBA grassroots event. Usually scheduled in the fall, this trip is being moved to the summer to accommodate the 2020 elections to ensure the effectiveness of legislative meetings. In addition, we are thrilled to share that the IBA has reserved space in one of Washington's most historic hotels, The Willard InterContinental. Watch for more information to be released in early 2020. For questions, contact Josh Myers at 317-333-7165.
FDIC Issues Proposal to Reform Brokered Deposit Regulations
The FDIC last week issued a long-awaited proposal to modernize the existing brokered deposit rules and foster greater innovation by financial institutions. The proposal would clarify the definition of "deposit broker" to more accurately reflect the industry today and take into account the vast number of technological advances that have changed how banks take deposits. It would also establish an application and reporting process for depository institutions wishing to utilize the rule’s "primary purpose exception."
Senate Sends Spending Package to White House
The Senate passed comprehensive fiscal 2020 spending legislation, sending it to the White House to be signed into law by President Donald Trump. The $1.4 trillion package would fund the government through September 2020 and avoid a government shutdown set for midnight tonight.
The legislation includes provisions to keep the Small Business Administration 7(a) loan program running, extend the National Flood Insurance Program, provide disaster relief to farmers affected by this year's severe weather, and appropriate $2.75 billion in guaranteed farm ownership loans and $1.96 billion in guaranteed farm operating loans.
Agencies Release 2018 CRA Data on Small Biz, Community Development Lending
The federal banking agencies on Monday released 2018 Community Reinvestment Act data on small business, small farm and community development lending. The CRA requires banks with more than $1.25 billion in assets to report data in these areas.
The 700 reporting banks originated or purchased 7.1 million small business loans totaling $254 billion. The total number of loans originated by reporting banks increased by about 8% from 2017, and the dollar amount of originations increased by about 5%. Small farm loan originations fell by about 1% year-on-year, while the total dollar amount increased by 0.6%. About half the reported small business loans and 70% of reported farm loans were made to firms with less than $1 million in revenue.
Just over 600 banks reported community development lending activity totaling nearly $103 billion in 2018, up from $96 billion in 2017.
Fed Announces Annual Reg I Adjustment
The Federal Reserve Board has announced the annual adjustment to the asset-size threshold in Regulation I that determines the dividend rate paid to Fed-member banks. The updated total consolidated asset threshold is $10.715 billion through Dec. 31, 2020.