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Alyssa, don't miss these important MBA updates...
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ABA FOUNDATION
Today is Teach Children to Save Day
Thank you to all banks for participating in the national event, Teach Children to Save Day!
- Bank Michigan
- Bank of Ann Arbor
- Central Savings Bank
- ChoiceOne Bank
- County National Bank
- Eastern Michigan Bank
- Highpoint Community Bank
- Horizon Bank
- Huron Community Bank
- Independent Bank
- Isabella Bank
- Lake-Osceola State Bank
- Macatawa Bank
- Mercantile Bank
- Northstar Bank
- Peoples State Bank of Munising
- Range Bank
- Sturgis Bank & Trust Company
- Superior National Bank
- The Huntington National Bank
- Thumb Bank and Trust
- Tri-County Bank
- United Bank of Michigan
- University Bank
- West Michigan Community Bank
- West Shore Bank
Do you have pictures of the events? Please send them to Alyssa Bouchard at abouchard@michigan.bank to be featured in our upcoming magazine.
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MBA NEWS
MBA Annual Membership Meeting – Bankers Only
Wednesday, June 19 | 4:00 P.M. EST
As outlined in Article II of the bylaws of our organization, the MBA Board of Directors has called the Annual Meeting of the Membership for Wednesday, June 19. This will take place during our convention at Grand Hotel, Mackinac Island, beginning at 4:00 p.m. in the Theatre. The primary purpose of this meeting will be to elect dire9ctors and officers of the organization. Bankers only.
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Mark your calendars and extend the invitation to your team for the FDIC Directors College on May 23rd, proudly presented by the MBA, CBM, and FDIC in Lansing. Explore the agenda and secure your spot today. | | |
MBA NEWS
Happy Volunteer Month
April marks National Volunteer Month, but here at the Michigan Bankers Association, we celebrate our volunteers every day of the year! Your dedication and heart drive the impact of our work. Thank you for being the heart of our community!
"Remember, volunteers don't necessarily have the time; they have the heart!" - Unknown
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MIBANKPAC
Congressman Bill Huizenga Fundraiser
We raised over $25,000 for House Financial Services member, Congressman Bill Huizenga at MBA Headquarters today. Thank you to all who attended and/or contributed.
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DIVERSITY, EQUITY AND INCLUSION
MBA DE&I Forum
May 1 | Virtual
The MBA is hosting the next Virtual DE&I Forum on May 1. This opportunity will allow you to connect with your peers around the industry regarding Diversity, Equity, and Inclusion. DE&I is a journey we all are on whether you’re just starting out or a seasoned veteran. This forum is meant to bring us together to make the industry a more diverse and inclusive space for your teams and customers. Access the latest MBA DE&I Newsletter.
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GRASSROOTS ALERT
Bankers: Urge Lawmakers to Pause Fed Plan to Slash Debit Card Interchange Fees
Currently the Federal Reserve is proposing to further lower debit interchange via Regulation II. The Fed’s proposal is based on incomplete data and does not consider the impact that reducing interchange revenue could have on the affordability and availability of low or no-cost banking products.
Rep. Blaine Luetkemeyer (R-MO) has introduced the Secure Payments Act, a bill which would require the Federal Reserve to pause its current Regulation II proposal and complete a quantitative impact study of the effects of the proposal before moving forward.
Write to your Representative today and urge them to co-sponsor the Secure Payments Act.
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REGULATORS
FDIC Acting Director
Dan Marcotte, the Acting Regional Ombudsman, will be the acting Director for the next 90 days at the FDIC Chicago Region.
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CONGRESS
MBA, ABA, State Associations: Congress Must Push for Review of Regulatory ‘Tsunami’
In a joint letter to the leaders of the House Financial Services Committee and Senate Banking Committee, MBA, ABA and 51 state bankers associations urged lawmakers to demand an independent review of recent banking agency rulemakings to assess their appropriateness and effectiveness in addressing risks within the banking sector.
Congressional investigations into the causes of last year’s banking crisis remain incomplete, specifically regarding the appropriateness of the regulators’ post-failure actions and rulemakings, the associations said. The recent push for multiple regulatory changes—including those related to the Basel III endgame, long-term debt requirements and the FDIC governance proposal—allegedly stem from the failure of Silicon Valley Bank. However, these measures would not have prevented the bank failures, nor would they foster a broad-based, diverse U.S. banking system, they said. “We believe this regulatory tsunami is not a rational response appropriate to current circumstances and warrants scrutiny,” they added.
The associations noted that Sens. Jon Tester (D-Mont.) and Thom Tillis (R-N.C.) have called for an independent review, as has Federal Reserve Governor Michelle Bowman. Read the letter.
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REGULATORS
FDIC Seeks Public Comment on Proposed Changes to Bank Merger Policy
The FDIC is accepting public comment on its proposal to change how the agency will evaluate bank merger applications. Among other things, the proposal would broaden the number of competitive factors the FDIC will take into consideration when deciding whether to approve or deny applications. The agency would also require a “thorough accounting” of the potential effects on communities, including possible branch closures or relocations.
The FDIC board voted 3-2 in March to pursue the proposed revisions. ABA has raised concerns about the proposal, saying it could introduce more unpredictably and delays in the merger approval process. Comments on the proposal are due June 18 and will be made public on the FDIC website.
Read the FDIC’s request for comment.
Comment on the proposal through the FDIC website.
Learn more about the proposal.
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UPOAA
Uniform Power of Attorney Act Webinar
A new law in Michigan is designed to provide for increased accessibility, effectiveness, and standardization for POAs. The Uniform Power of Attorney Act (UPOAA) was signed into law by Governor Gretchen Whitmer on November 7, 2023, and will take effect on July 1, 2024. If you couldn't make it to the webinar, access the slides here. Looking for more information on UPOAA, access the resource page here.
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HUMAN RESOURCES
Labor Department Issues Final Rule to Increase Overtime Eligibility
The Department of Labor earlier this week issued a final rule that would significantly increase the number of employees who are subject to the Fair Labor Standards Act’s overtime and minimum wage requirements. The rule was issued despite objections from ABA and other industry groups that increasing the salary threshold would harm employees by limiting remote and flexible scheduling options, limit career advancement, and reduce access to incentive pay and other benefits. Employer organizations representing nonfinancial companies are considering filing a lawsuit to challenge the rule.
Under the rule, the standard salary level is set at the 35th percentile of weekly earnings of full-time salaried workers in the lowest-wage Census Bureau Region, which is a significant increase above the existing salary level of $35,568. An employee whose salary falls below the salary level is automatically classified as a nonexempt employee and is subject to federal overtime and minimum wage requirements. For employees whose salary falls above the salary level, the employee may qualify for exempt status if the employee satisfies the “duties test,” which the final rule did not change.
The salary level under the rule will increase to $43,888 as of July 1, and then to $58,656 as of Jan. 1, 2025. The rule also requires DOL to update the salary level automatically every three years using the methodology in the rule. In addition, the rule increases, to $132,964 on July 1, the amount of income an employee must receive to be subject to the “highly compensated employee,” or HCE, test—an abbreviated duties test available to determine whether employees who meet a higher salary threshold are exempt. The HCE test’s compensation threshold then increases to $151,164 per year (including at least $1,128 paid on a salary or fee basis) as of Jan. 1, 2025.
Read the rule.
Read a joint industry group statement on the rule.
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HUMAN RESOURCES
Federal Trade Commission Bans Noncompete Clauses
The Federal Trade Commission earlier this week finalized a new rule to ban the use of noncompete clauses in employee contracts. While the FTC does not have regulatory authority over banks, it does have authority over bank affiliates.
The final rule makes it illegal for an employer to enter into a noncompete with a worker, maintain a noncompete with a worker or tell workers they are subject to a noncompete. Noncompete agreements with senior executives entered into before the rule’s effective date—which is 120 days after the rule’s publication in the Federal Register—remain in force under the final rule. Existing noncompetes with other workers are not enforceable after the effective date.
Read the final rule.
Read the joint association letter on the rule.
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CYBERSECURITY
Survey: Financial Institutions Losing Millions to AI-Powered Fraud
Slightly more than half of financial institutions said in a recent survey that they had lost between $5 million and $25 million to artificial intelligence-based threats in 2023. The survey of financial institutions in the U.S. and 10 other countries by the security services firm BioCatch found that 51% of respondents said they had lost millions to AI-enabled crime in the past year. At the same time, 56% said that financial crime activity increased in 2023, with 46% expecting it to increase this year.
Sixty-nine percent of respondents said that criminals are more advanced at using AI for financial crime than banks are at using AI to fight crime, according to the survey. Seventy-two percent said their organizations faced cases of synthetic identities when onboarding new clients. At the same time, 91% are rethinking the use of voice verification for big customers given the risks of voice cloning with AI. Eighty-eight percent said more information should be shared between banks, financial institutions and government or regulatory authorities to combat financial crime and fraud. Read more.
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For 138 years, we've gathered to celebrate our industry, recognize our leaders, and enhance our abilities to serve our customers and communities. We are a vibrant community of bankers dedicated to shaping a prosperous future for our field. Let's celebrate! The unparalleled energy of collaboration and creativity that permeates our industry when we convene on the island is unmatched. Register now and secure your accommodations.
Looking forward to seeing you in June!
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Since 1945, the Graduate School of Banking (GSB) at the University of Wisconsin-Madison has been educating professionals and creating leaders in the banking industry. As the financial services industry has changed, so has GSB. GSB Graduates Receive a GSB Diploma Plus a Certificate of Executive Leadership from Wisconsin School of Business. View scholarships. There is still time to register! Submit your application by June 1. If you are interested in scholarship opportunities, please contact us. | |
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MBA SERVICE CORPORATION
Net Zero Insights: Tracking Tomorrow's Sustainability Webinar
Tuesday, April 30, 2024 | 10:00 am - 10:30 am EDT
Net zero commitments data is becoming increasingly vital for organizations and investors as it provides a transparent framework for tracking emissions reductions and sustainability progress. Investors are prioritizing sustainable investments and seeking access to robust net-zero data to assess companies' environmental performance and long-term viability. This information fosters accountability, drives innovation, and positions organizations to thrive in a rapidly evolving market focused on climate action. Learn more and register!
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MBA SERVICE CORPORATION
Fund More Loans
Consumers, dealers, and merchants are sending requests for loan funding to multiple financial partners. They are most likely to present financing to their applicant from one of the first financial institutions to respond with an offer. Gone are the days where they would wait for the next business day, or Monday after a weekend. LSI can save you on total dollars spent on underwriting at a variable cost, assist with staffing challenges when volumes exceed internal resources, underwrite more quickly, mitigate risk, and FUND MORE LOANS.
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MBA SERVICE CORPORATION
Vendor Management in a Vendor Breach
Understand your vendor’s security practices through your vendor management program. Align those vendor relationships with your cybersecurity goals and standards. Read more.
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MBA SERVICE CORPORATION
Winning More Customers Can Be Easy
Over the past few years, bankers have been very busy helping customers with a myriad of needs arising from the pandemic and the lower interest rate environment.
Commercial bankers were busy processing PPP loans. Retail bankers were busy continuing to educate customers about online banking. Mortgage lenders were busy trying to refinance customers at lower rates. Wealth managers were busy helping early retirees unlock their investments.
Despite the difficulties of the pandemic in the initial years, it was relatively easier to win more customers as they were contacting the bank and seeking help to overcome challenges. Read more from Joe Micallef, Industry Expert at BankTalentHQ.
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MBA SERVICE CORPORATION ENDORSED PARTNER
The Latest from Compiance Alliance
View the Compliance Alliance Question of the Week.
Banking Matters Podcast - Learn about today’s financial trends, topics, and practical matters on the Banking Matters Podcast. Listen to new episodes every Monday! Listen now.
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Happy work anniversary to Nicole Costello-Ladiski! FIVE years of dedication, innovation, and teamwork. We're grateful to have you as part of the MBA team! Cheers to your continued success! 🥂 | |
🎉 Cheers to Ashley Beesley on her 5-year work anniversary with the MBA! Your dedication and hard work are truly appreciated. Here's to many more years of success together! 🥳 | |
🎪 Exciting news from the Michigan Traveling Circus! 🌟 College juniors or higher in business or finance-related majors, the George Harding Scholarship awaits you. Begin your application journey now at https://lnkd.in/eDvZYeAd. 🚀 | |
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