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Alyssa, don't miss these important MBA updates...
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FRAUD
Register for Fraud Webinar with Paul Benda on February 21, 2:00 P.M. ET
Join us Wednesday, February 21st at 2:00 P.M. ET for a fraud webinar featuring Paul Benda, Executive Vice President for Risk, Fraud, and Cybersecurity at the American Bankers Association. This webinar will explore crucial topics such as Check and ACH Fraud.
To make the most of this opportunity, send any questions you may have ahead of time to Alyssa Bouchard at abouchard@michigan.bank by Tuesday, February 20.
Don't miss this chance to enhance your understanding of fraud prevention with an industry expert. Reserve your spot today!
*After registration, you will receive an email with meeting login credentials from Zoom.
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CALL TO ACTION
MBA Needs Your Help: Take Action Now!
There are a handful of critical engagement opportunities right now that require the engagement of every banker in the state!
- Ask your Member of Congress to cosponsor the Homebuyers Privacy Protection Act to protect your customers from trigger leads after applying for credit! TAKE ACTION. Please share this call to action with your team, board and customers.
- Join us in Washington to engage with your Member of Congress in March. REGISTER NOW
- Request an advocacy update from the MBA to your team or board. Reach out to Chief Policy Officer, Patricia Herndon at pherndon@michigan.bank.
Your fellow banking leaders are taking advantage of these opportunities now! We already have over 150 contributors to the MiBankPAC in 2024, 25 bankers have signed up to join us in Washington, and over 600 bankers have engaged in the Call to Action linked above.
A big thank you to Russ Kassin, President & CEO, First National Bank & Trust who reached out directly to Congressman Bergman’s staff contact after the CTA was issued. As a result, Congressman Bergman is the first member of the Michigan Delegation to Co-sponsor this legislation!
Your engagement has a tremendous impact. We need all hands-on deck to achieve our goals for the industry. Engage with us today!
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PROFESSIONAL DEVELOPMENT
JOIN US at the 138th MBA Annual Convention
Early registration is now open for the MBA 138th Annual Convention, June 19-21 on Mackinac Island. We look forward to hosting you, your family, your team, and board of directors on the island!
Save the date and make plans to join us.
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MBA AWARDS
2024 MBA Banker of the Year
Nominations are Due by Friday, February 23
Honoring remarkable leadership within the MBA, a distinguished member banker is recognized annually for their outstanding contributions to the association, the industry, and our communities. The MBA Banker of the Year award stands as a testament to excellence in our profession, casting a spotlight on the best and brightest for the public, media, and elected officials to admire. Learn more.
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PROFESSIONAL DEVELOPMENT
Learning Takes You Places - JOIN US!
Register for the Bankers Education Summit and Trade Show (BEST) March 20-22 in Traverse City. There are close to 40 sessions, dynamic keynotes, networking opportunities and discover new products and services for your bank. Make plans today! We'll see you in March.
Reserve your room by February 22.
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REGULATORS
Bowman Speaks out on Accountability
MBA met this weekend with Federal Reserve Board Governor Miki Bowman discussing a number of issues facing our membership. We applaud her essay, released Tuesday on accountability for both banks and regulators. Read the essay.
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REGULATORS
Navigating Regulatory Challenges: MBA and State Bankers Associations Speak Out
The MBA and state bankers' associations in the Ninth Federal Reserve District recently conveyed a unified message, addressing the urgent concerns of community banks amid regulatory changes. Here's a cohesive overview of the key issues:
- Community banks express serious reservations about the Federal Reserve Board's rulemaking on Regulation II, implementing the Durbin Amendment. The combined impact of recent and proposed rules, including changes to the Community Reinvestment Act (CRA) and Basel III Endgame Capital Rules, presents substantial challenges.
- Consumer compliance challenges are particularly notable for community banks with assets exceeding $10 billion, as they grapple with new requirements introduced by the Consumer Financial Protection Bureau (CFPB). The lack of clear and transparent regulatory experiences hampers the industry's adaptability to evolving standards.
- Ongoing legal actions against the CFPB, FDIC, and the Federal Reserve underscore the industry's frustration with regulatory changes. The banking community is actively seeking fair and transparent regulatory practices and relief from burdensome and retroactive positions.
- Community banks face increasing pressures from rising compliance, regulatory, and technology costs, raising concerns about sustainability. Acknowledging Governor Michelle Bowman's role, the industry calls for continued representation of community bank interests on the Federal Reserve Board.
- In alignment with Governor Bowman's "New Year's Resolutions," community banks emphasize the necessity for safety and soundness supervision, tailored regulations, and enhanced transparency. The Federal Reserve Board is urged to incorporate these insights into policies, considering the unique challenges faced by community banks.
Read the letter.
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REGULATORS
MBA, ABA, State Associations: No Justification for Proposed Board Governance Rule
A proposed FDIC rule to establish new guidelines for governance and risk management at supervised banks with at least $10 billion in consolidated assets would undermine the safety and soundness of covered institutions and the industry as a whole, MBA, ABA and 51 state bankers' associations said on Friday. In a comment letter, the associations urged the agency to withdraw the proposal and instead explore releasing it as guidance rather than enforceable guidelines. Read the letter.
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REGULATORS
MBA, ABA, State Associations Urge Fed to Withdraw Change to Debit Interchange Cap
In a joint letter, MBA, ABA and 51 state bankers associations urged the Federal Reserve to withdraw its proposal to reduce the debit card interchange cap under Regulation II, saying the Fed must first conduct a rigorous study of both the proposal’s effects and the cumulative effects “of the tsunami of newly finalized and pending regulations from the banking agencies.” The proposed rule is built on a misapplication of the law and a false policy premise that the secure payments system that drives so much economic activity and customer value should somehow be costless, the associations said. The groups further warned that the proposed 30% cut in debit interchange would be potentially severe for both banks and their customers. Read the letter.
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REGULATORS
ABA Urges Caution if Regulators Revisit Bank Liquidity Requirements
If federal regulators plan to revise bank liquidity requirements or related reporting, then they should first issue advance notices of proposed rulemaking to give the public and banking industry sufficient time to review and comment on the proposals, ABA said Tuesday in a letter to top officials at the Federal Reserve, FDIC and OCC.
ABA’s comments were in response to recent speeches by Acting Comptroller of the Currency Michael Hsu and Fed Vice Chairman of Supervision Michael Barr in which both suggested revisiting bank liquidity requirements in the wake of last year’s Silicon Valley Bank and Signature Bank failures. The association noted that agency reviews found that those failures were largely idiosyncratic and primarily the result of inadequate risk management. ABA also expressed concern about regulators’ focus on uninsured deposits as a proxy for liquidity risk, noting that the term covers a diverse set of deposits and bank products. A more granular approach to uninsured deposits would avoid penalizing certain banks, depositors and activities, the association said. Read the letter.
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VOTING
Michigan Early Voting Starts Feb. 17.
What to know about the presidential primary.
When Michiganders go to the polls this month to cast a ballot in the presidential primaries, it will be the first chance for every voter to take advantage of the state’s new early in-person option - one feature in a series of changes for elections this year based on the passage of Ballot Proposal 2 in 2022. Read more.
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CONGRESS
Bills to Prevent Abuse of Mortgage ‘Trigger Leads’
ABA urged Congress late last week to pass legislation to ban the practice of credit reporting firms selling consumer contact information to lenders who then barrage those same consumers with unwanted solicitations. In a letter to lawmakers, the association expressed support for S. 3502 and H.R. 7297, both of which would eliminate abusive mortgage “trigger leads” and limit prescreened credit offers to consumers who consent or who have a preexisting relationship with a financial institution. Learn more. Tell your Member of Congress to cosponsor the Homebuyers Privacy Protection Act to protect your customers from trigger leads after applying for credit! TAKE ACTION.
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CREDIT UNIONS
NCUA Chairman's Key Announcements
The National Credit Union Administration (NCUA) Chairman Todd Harper made a major announcement last week during an event at the Brookings Institution: credit unions with more than $1 billion in assets will soon be required to report data regarding overdraft and nonsufficient funds fees revenue (note the 400+ credit unions over $1 billion represent about 90% of assets systemwide). This will bring much-needed transparency to the credit union system and level the playing fields with banks. Chairman Harper also commented on other key issues:
- Credit Union Mission: “There is this myth within the credit union system that because credit unions are owned by their members, they’re always going to do right by their members…the people who manage the credit union, their interest doesn’t always align with that of the members.”
- Bank Acquisitions: “When a credit union acquires a bank…why is it that on the bank side of the ledger there is a separate consumer compliance exam with a separate consumer compliance score that is done every 3 years, and that’s not done on the credit union side? We’re working to fix that problem.”
- Stadium Naming Rights: “If I were on a credit union board, I would be advocating that rather than spending that money necessarily on naming rights, I’d be pointing it in the direction of what can we do to lower the prices of our loans and increase the service to our members.”
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ABA CONFERENCE FOR COMMUNITY BANKERS
Highlights from ABA's Annual Conference for Community Bankers
The 44th Annual Conference for Community Bankers kicked off with ABA President and CEO Rob Nichols addressing the challenges posed by a "tsunami of new regulations." Nichols discussed ABA's proactive stance against regulatory overreach, citing the recent lawsuit filed against the Community Reinvestment Act final rule.
- To support community bank innovation, Nichols unveiled the ABA Partner Network, aiming to provide objective assessments of products within the banking industry. The first report focuses on digital account opening solutions.
- Federal Reserve Governor Michelle Bowman emphasized the "cumulative impact" of new regulations as one of the "greatest threats" to the community banking model. She cautioned against the quantity-over-quality approach in risk evaluation and expressed concerns about supervisory scrutiny affecting community bank mergers.
- During a Q&A session, Bowman discussed the economic outlook and the Federal Open Market Committee's considerations. Responding to concerns about restrictive monetary policy, Bowman stated, "Not restrictive enough to get us to 2%" regarding the inflation target.
- A survey released at the conference revealed that a majority of American consumers see the presence of banks of all sizes as advantageous for the nation's economy. The community banking sector received positive feedback, with consumers expressing confidence in the safety of community banks and valuing personalized attention.
- Acting Comptroller of the Currency Michael Hsu highlighted the critical role of trust for community banks to maintain a competitive edge. He emphasized the need for adaptation to changing consumer needs, diverse leadership, and maintaining community trust. However, ABA Chief Policy Officer Naomi Camper expressed concerns about regulatory proposals hindering community banks from achieving their community-focused vision.
- The conference provided insights into the challenges and opportunities facing community banks, with a focus on regulatory issues, innovation, and the importance of community trust.
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BANK ON
Banking Inclusivity: Banks Embrace the Bank On Movement
The vast majority of consumers in the country have a bank account and enjoy the safety, security and benefits that come with it. But there are still some who remain outside the banking system. For those individuals, access to a simple transaction account can be a first step toward long-term financial security.
As part of the MBA’s commitment to reduce the number of unbanked people in the country, we are encouraging all banks to join the Bank On movement by offering low-cost, basic accounts that meet the Bank On initiative’s National Account Standards. By taking this step, your bank will demonstrate your commitment to financial inclusion, while also adding new customers in the process. Learn more.
The subsequent work of Bank On coalitions to increase the availability and uptake of these accounts has been, if I might say, remarkable." FDIC Chairman Martin J. Gruenberg (Remarks at 2023 Bank On National Conference)
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REGULATORS
OCC Opens Registration for 2024 Board, Management Workshops
The OCC opened registration for its 2024 schedule of in-person workshops for board directors and senior management at national community banks and federal savings associations. The OCC examiner-led workshops provide training and guidance to support the safe and sound operation of community-based financial institutions, according to the agency. It is also offering a half-day workshop, “Capital Markets: Keeping Current,” which covers balance sheet management risks and risk themes for bankers and regulators in the capital markets area. Workshops are limited to 35 participants. Learn more.
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REGULATORS
CFPB Ramps Up Pressure on Overdraft Fees - Article from Compliance Alliance
Lately, bank regulators have been focusing on "junk" fees, with overdraft services being a common target. The CFPB recently proposed a rule that could significantly reduce overdraft fees across the industry. Learn more.
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RESEARCH AND ANALYSIS
Liquidity, Commercial Real Estate Under the Microscope at Community Banks
Deposits remain firmly in focus for community banks, even with interest rates expected to fall in the second half of 2024. Customers continue to shift funds into higher-cost products and demand higher rates for their funds, while regulators are encouraging banks to hold more liquidity, leading to pressure on net interest margins. That pressure will eventually subside but be replaced by higher credit costs. While many community banks will maintain attractive returns, others will seek to improve their situation through efficiency programs or by partnering with another institution. Read more.
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Save the Date for the MBA Group Membership Golf Outings!
- Thumb Regional Outing -July 11
Ubly Heights Golf and Country Club, Ubly
- Harding Outing -July 25
Eagle Eye Golf Course, Bath
- U.P. Outing- August 13
Greywalls Golf Course, Marquette
- SE/SW Regional Outing - August 22
Travis Pointe Country Club, Ann Arbor
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CRA Workshop - In partnership with the Wisconsin Bankers Association
March 1 | 10am – 3:30pm EST or 9am – 2:30pm CST In-Person or Virtual
The new CRA framework is finally here. On October 24, 2023, the Federal Reserve Board, the FDIC, and the OCC issued a long-awaited final rule to implement the Community Reinvestment Act (CRA). This new rule updates the long-standing CRA framework that has been used for the last two decades, meaning that CRA change is now coming for banks. One of the biggest changes with this rule is that it is going to have slightly different thresholds to determine whether a bank is examined under the small, intermediate, and large bank test, and both small and intermediate-sized banks will have the option to opt-in to certain tests. Therefore, it is important for bankers to understand how this rule is going to apply to them so that they can start working now to be prepared for the upcoming changes. This CRA Workshop will start out with an overview of the new CRA rule, helping attendees understand the larger framework that will be required. After this, we will walk through the new rule, pointing out which parts apply to small, intermediate, and large banks respectively. This discussion will include reviewing topics such as the new retail tests, discussing the transition rules and implementation dates, reviewing the CRA public file requirements, discussing the opt-in options for small and intermediate banks, and even reviewing the public notice requirements. The bottom-line goal of this seminar is to help attendees understand the CRA requirements of the new rule.
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The MBA Perry Schools of Banking has a long history of helping its students gain a broader knowledge and understanding of major banking functions such as credits, investments, asset and liability management, planning and control, regulatory issues, human resources and marketing. The school is governed by a board of trustees. Students are in residence one week each year for the three years. Students spend a minimum of 40 hours in the classroom and work on projects throughout the year. They also take comprehensive final exams, along with competing in Bank Simulations! Apply for the Mid-Michigan Banking Group Scholarship Application. | |
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MBA SERVICE CORPORATION
DeliveryEdge™ Value to FIs and Account Holders
MBA Service Corporation Endorsed Partner Vericast introduces their solutions for mail fraud. Learn about DeliveryEdge™ and it's value to financial institutions and account holders. For more information, contact Jill Verscheure, MBA Service Corporation, Senior Vice President at jverscheure@michigan.bank.
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MBA SERVICE CORPORATION
Upcoming Events from Michigan Planners
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SEMINAR: Mastering Non-Competes: Legal Insights and Best Practices for Business Success
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Date & Time: February 15th, 9 AM to 10 AM
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Registration Link: Register Now!
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WEBINAR: Total Rewards in the Midst of High Inflation
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Date & Time: February 23rd, 11 AM to 12 PM
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Registration Link: Register Now!
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MBA SERVICE CORPORATION
PRIORITIZE QUALITY With LSI
Completing quality reviews is critical to upholding your standards of quality and building trust in your community, but most of us can agree that other tasks and deadlines often get in the way.
It is recommended that financial institutions review 10% of their loans.
NEVER MISS ANOTHER REVIEW!
Leverage a partnership with a trusted quality review partner to ensure that you complete all of your reviews while keeping the process objective and unbiased (plus, imagine how happy the examiners will be!).
With millions of quality reviews under our belt, LSI is offering this as our newest solution. Learn more.
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MBA SERVICE CORPORATION
What's Going On in Banking
More than half of the 350+ financial institution executives surveyed said they are optimistic about the year ahead. Yet, 52% anticipate a recession or downturn in the economy. Download the report.
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MBA SERVICE CORPORATION
Do you need to fill ongoing operational gaps?
Right now, many banks are facing stop-gap performance throughout the institution. Whether it’s struggling to replace loss of a key member, the lack of resources in the face of growth, or the need for operational compliance continuity—Bankers Alliance has the remedy.
With budgets on the horizon, now is the time to understand how B/A can help your group. Learn how to build a more solid program when you talk with the Compliance Alliance Membership team at info@bankersalliance.org or contact Jill Verscheure, Senior Vice President, MBASC.
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MBA SERVICE CORPORATION ENDORSED PARTNER
The Latest from Bankers 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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Calling all marketers! 🚀 Mark your calendars for May 16th because the MBA Marketing Forum is back, with the marketing wizard, 🤘Eric Cook, MBA, WSI, sharing his secrets! Get ready to level up your bank marketing skills and expand your network. The best part? YOU decide the agenda! Don't miss out – register today! 🔥
➡️ https://lnkd.in/e2JJqkiVs
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Honoring the remarkable legacy of Madam C.J. Walker during #BlackHistoryMonth! 🌟 A pioneering businesswoman, she became the first self-made female millionaire, transforming hair care for Black women. In 1910, Madam C.J. Walker established the Madam C.J. Walker Manufacturing Company in Indianapolis, IN. Explore her inspiring journey: https://lnkd.in/gTEjRdTY. | |
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