November 20, 2019

In This Issue: 
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Message From The President

By John Witkowski, President & CEO

IBANYS is pleased to welcome our newest associate member firm, GRC Solutions -- doing business as Better, Inc. in the United States -- leaders in compliance training services. Their industry experts and unique development tools allow them to deliver extraordinary training services that increase engagement, reduce training times and improve learning outcomes. The goal is to effectively create a culture of compliance at companies. For more information, contact Justin Muscolino, Head of North American Compliance Training: (646) 675-8109,  Or, visit their website at

As autumn dwindles and winter approaches, we are just a week away from Thanksgiving
. . .and then, a quick sprint through December and the holiday season. In fact, as of today 
-- Wednesday, November 20 -- there are only seven weeks until the 2020 New York State Legislative Session gets underway. 

T he political landscape remains unchanged. We will once again be faced with a state government under the control of the same party, and a State Senate and Assembly operating with overwhelming Democratic -- and, downstate based -- majorities. However, the session will play out against the backdrop of the 2020 elections, with every seat in the State Senate, State Assembly and New York Congressional Delegation on the ballot.

The issues next year, will no doubt include some  familiar ones -- efforts to allow credit unions to enter the public/municipal deposits business, matters related to taxes, data privacy, financial fraud and CRA.  Yet, we can also expect to see a new set of legislative and regulatory initiatives that will have a direct or indirect impact on New York's community banks.  

We will need the full engagement and support of our member banks as we develop our 2020 legislative and regulatory agenda, and craft our responses. IBANYS is preparing for the 2020 session, developing positions and policies and encouraging member banks to meet with their local legislators to continue informing them about community banks, our priorities and the vital role we play in New York State. 
  • Please email us your ideas, thoughts and comments on issues you want to see on the 2020 IBANYS legislative agenda.
  • Please sign your bank up to participate on our IBANYS Government Relations Committee. E-mail me ( or Steve Rice ( to sign up -- or, to designate a senior representative from your bank to represent you on the committee.


ALSO: Please take a moment to review our 2020 IBANYS Meetings Calendar below, including the printable attachment. Mark your calendars, share it with your colleagues, and plan to join us for these important educational and networking sessions.


Later in this newsletter, we have an article from ICBA's "NewsWatch Today" urging readers to tell the NCUA to adopt the same anti-discrimination safeguards banking regulators apply to banks. The links to both a form letter and the personalized letter are below the text of the article.  A summary of the proposal is available on ICBA's "Wake Up" credit union resource center at


For an early updated look at the 2020 political outlook in New York's 27 House districts from City & State click here. . . or visit
 then  click on "NEW YORK STATE: Who's threatening House members in 2020"?

As always, thanks for all you do for community banking in New York State.
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Mark Your Calendars For These Upcoming 2020 IBANYS Conferences: 

(Meeting Agendas & Registration Information Coming Soon)


Click here for IBANYS -  2020 Meeting Dates & Locations  (printable version)


IBANYS' 2020 Meetings Calendar is now available (see printable document above)

. . . Please note we are introducing new meeting locations in New York City. We encourage all New York community bankers and IBANYS associate members, preferred providers, potential vendors, sponsors & exhibitors to priunt it out, share it with your colleagues and "save the date." 



Compliance Conference & Directors Conference


  • Have an idea for one of our meetings? Want to see a meeting or forum on a different subject? We want to hear from you! 
    Contact Linda Gregware or John Witkowski with your thoughts and/or comments
IBANYS Education/WebinarsWebinars
The Independent Bankers Association of New York State (IBANYS) partners with CBWN to bring you more than 150 webinars each year covering compliance, lending, regulations, security, operations, new accounts, collections, fraud, security and other topics. Not only that, but every time you purchase a webinar, you support IBANYS, because a portion of your registration comes directly to us. Thank you!  

You can view the 2019 Webinar Schedule here or by category here. In addition, CBWN has made some recent updates to provide better service to its consumers. Unfortunately, some changes may have caused you to miss important webinar announcements. Please read the IBANYS letter to view the updates and ensure that you do not miss another webinar.

CBWN and IBANYS thank you for your continued support of the education in the community banking industry. 

Purchase Webinars Individually or Purchase the Series to Save 10%!

View or Purchase the Webinar

Stay-up-to-date with our webinar features by following us on Facebook, Twitter, Instagram, and LinkedIn! You can also follow the hashtag #WebinarWednesday on Instagram/Twitter!

Government Relations

The New York State Legislature will return to Albany in January for the 2020 session. 

Dorado Named Senior Deputy Superintendent for Banking At DFS
Ray Dorado has been named Senior Deputy Superintendent for the Banking Division at the New York State Department of Financial Services. Dorado has 30 years of experience in financial services. 

DFS Authorizes Another Virtual Currency Charter
The New York State Department of Financial Services (DFS) granted a charter under State Banking Law to Fidelity Digital Asset Services, LLC (FDAS), to operate as a limited liability trust company as part of the state's rapidly growing virtual currency marketplace. DFS began licensing the virtual currency business with the promulgation of its BitLicense regulation in 2015. DFS authorized FDAS to provide a virtual currency custody and execution platform, on which institutional investors and individuals can securely store, purchase, sell, and transfer Bitcoin. Superintendent Lacewell noted: "As the financial capital of the world, New York must also continue to be the center of financial innovation. DFS will continue to provide regulatory oversight of new technologies to both foster innovation and protect consumers, companies, and markets. This approval is further evidence that innovation and consumer protection can coexist in New York's evolving and expanding financial services industry."

The 2020 session of the New York State Legislature will begin in early January.
Click here for the 2020 New York State Legislative Calendar.

Washington, D.C.WashingtonGR

Tell NCUA: Don't Let Credit Unions Discriminate
ICBA is calling on community bankers to tell the National Credit Union Administration to adopt anti-discrimination safeguards that banking regulators apply to banks.  The NCUA's proposed rule would allow federal credit unions to continue to serve core-based statistical areas without serving their urban core, despite an appeals court ruling that this could have a discriminatory effect on low- and moderate-income communities.
ICBA (and IBANYS) encourage community bankers to send in a personalized message to the NCUA, though a form-letter version of the grassroots message is also available. A summary of the proposal is available on ICBA's  "Wake Up" credit union resource center: Please visit

Link to personalized letter:

Link to form letter:

Rep. Carolyn Maloney In Line For Key Position
Rep. Carolyn Maloney (D-Manhattan) cleared the first hurdle to becoming Chairwoman of the powerful House Oversight and Reform Committee, getting the nomination from the House Democratic Steering and Policy Committee, which the full Democratic caucus will finalize Wednesday. Former Chairman Elijah Cummings (D-MD) recent ly passed away.
This Week In Congress
  • As the Farm Credit Administration reported to a House Agriculture subcommittee on credit conditions, ICBA submitted a statement outlining the competitive disparity between bank and Farm Credit System (FCS) lenders, highlighting current regulatory issues. ICBA noted the expansion of the FCS into non-farm lending disadvantages taxpaying community banks and jeopardizes the economic strength of rural communities. ICBA advocated the Enhancing Credit Opportunities in Rural America Act, which would provide tax relief for agricultural and rural residential lending to offset FCS lenders' taxpayer-funded competitive advantage.
  • Federal regulators were set to testify at a House subcommittee hearing on preserving and promoting minority depository institutions following recent testimony before the panel from ICBA Minority Bank Advisory Council Chair and IBANYS G.R. Committee member Jill Sung, (President & CEO, Abacus Federal Savings Bank.)
  • The Senate Banking Committee will consider a bill to reauthorize the Terrorism Risk Insurance Program Reauthorization Act, followed by a hearing on several nominations.
  • Federal Reserve Chairman Powell met with President Trump and Treasury Secretary Mnuchin, and focused on the economy, growth, employment and inflation. Powell said the Federal Open Market Committee will set monetary policy in accordance with its mandate to support maximum employment and stable prices.
  • The National Flood Insurance Program (NFIP) is scheduled to expire on November 21 unless Congress acts.
  • House and Senate lawmakers reached a deal late last week to avoid a government shutdown and fund the government through Dec. 20. The agreement includes a 3.1% pay increase for the military and additional money for the 2020 census, but excludes restrictions on border barrier spending, which President Donald Trump demanded in order to sign the measure.

Powell: FedNow Implementation Unlikely To Take Five Years
Federal Reserve Chairman Powell has told Congress the Fed doesn't think implementing its FedNow real-time payments service will take the full five years it originally projected.
He told the   House Budget Committee   the agency thinks the FedNow launch will take three or four years. "Getting it right the first time is key," Powell said. "So we want to have it up and running within three to four years."  ICBA has urged  the Fed   to introduce its real-time payments service as quickly as possible to maximize adoption among community banks.

Latest On FHA's Single Family Mutual Morrtgage Insurance Fund
In its   annual report to Congress , the Federal Housing Administration (FHA) said its Single-Family Mutual Mortgage Insurance Fund has recovered to its highest level since fiscal 2007. The fund's capital ratio rose to 4.84% in fiscal 2019 from 2.76% the previous year, well above the statutory minimum of 2%. The fund's net worth rose by more than $27 billion since last year to $62.38 billion.  ICBA President and CEO Rebeca Romero Rainey said improved risk management practices by the FHA and an effective premium structure buoyed by a strong housing economy have rebuilt the fund.

FDIC Follows OCC with Proposed 'Madden' Workaround
The FDIC   proposed a new rule  to clarify federal law governing interest rates that state banks may charge customers. It would codify legal guidance providing that a permissible interest rate on a loan, as permitted by the law where the bank is located, would not be affected by subsequent events, such as the sale of the loan or a change in state law.
The proposal follows a similar proposed rule issued this week by the OCC. Both would address confusion from the Madden v. Midland Funding case. In that case, the Second Circuit ruled that when a loan has been sold or assigned to another party, state usury laws where the purchaser or assignee of the debt reside apply to the transaction.

Action Alerts:  actionalert

Urge Congress Congress To "Wake Up"
To Credit Union Reality
As part of ICBA's new "Wake Up" campaign, community banks can use ICBA's "Be Heard"  grassroots action center to tell Congress to "open their eyes" to the risks and taxpayer costs posed by credit unions.  The campaign  urges policymakers to "Wake Up" to the risky practices, costly tax subsidies, and irresponsibly lax oversight of the nation's credit unions. ( ICBA distributed to Congress its new "Do They Know They're Tax Exempt?" Read the White paper here.)  IBANYS strongly supports ICBA's "Wake Up" campaign to "open the eyes" of policymakers about the many ways that tax-exempt credit unions have an unfair advantage, and are using it to take out their tax-paying community bank competition.  Visit  and click on the advocacy tab.  

Seek Equal Treatment For Community Banks On Military Bases 
IBANYS joins ICBA in asking IBANYS members to urge their local Members of Congress to advance legislation that will help community continue to serve military bases and rural communities. ICBA's "Be Heard" grassroots action center ( can provide important information to help you. 1)  Urge lawmakers   to include language in a defense bill to extend the same "rent-free" benefits  to on-base banks that are currently enjoyed by credit unions; 2)  Support legislation   that would exempt from taxable income interest on loans secured by agricultural real estate, and 3)  Thank members of the House   who voted to pass ICBA-advocated legislation to establish a cannabis-banking safe harbor. 

IBANYS Preferred PartnersPreferred
For more information on IBANYS Preferred Partners - click here:
Industry Trends & UpdatesTrends


Improving The Effectiveness Of ALLL/CECL Modeling
Through The Use Of Correlation
A study from the financial crisis by the Congressional Research Services indicated that in the seven years prior to the crisis (2000 to 2006) loan values increased by 85% whereas the credit loss reserves increased by only 21%. Directional consistency was not readily apparent in the data that was analyzed. It was information like this that led to the changes to reserving we are all now facing. . . . Please click here  to read the entire article.
For more information, contact Megan Warner at 646.756.1006,

The CEIS Quarterly Newsletter -- Fourth Quarter 2019
CEIS Review, Inc. -- a commercial loan portfolio consulting firm serving the needs of commercial lending institutions -- has just released its "CEIS Quarterly Newsletter" for the Fourth Quarter of 2019. The newsletter includes discussions of the necessity of retaining qualified and experienced credit professionals, and how it improves the effectiveness of ALLL/CECL modeling through the use of correlation.
To read the newsletter, please click here. For more information, contact Megan Warner at 646.756.1006,


Tomorrow's QwickRate Webinar: New IntelliCredit Solution for Managing Credit Risk:

"Introducing IntelliCredit: The Next Wave 
In Managing Portfolio Credit Risk"
- - Tomorrow, Thursday, November 21, at 11:00 AM ET - - and its IntelliCredit division will offer a new solution in the portfolio credit risk area with our IntelliCredit product. Tomorrow's webinar introduces IntelliCredit. Please see the information below and click on the Register Now buttons below to sign up for the webinar.  As the U.S. goes deeper into the late stages of the current credit cycle, financial institutions will need advanced tools, analysis and strategies to detect emerging credit risk and stresses early, before serious deterioration and losses occur.  IntelliCredit, a new credit risk management solution, transforms an institution's ability to more simply and efficiently manage its aggregate credit risk profile. Never before have all the key tools such as stress testing, concentration, yield, and vintage analyses, ALLL/CECL, current state and forecasted portfolio trends, robust user defined board and management reports - and even loan reviews - been housed in one interactive platform.  Unlike so many risk-focused fintech tools, IntelliCredit was created by true credit specialists whose decades of expertise in managing and analyzing credit risk inform every data point, chart and calculation.

Can't make the webinar? Get more information at or 
(800) 285-8626


The Economy: By The Numbers
  • U.S. homebuilding rebounded in October and permits for future home construction jumped to a more than 12-year high, pointing to strength in the housing market amid lower mortgage rates. Housing starts increased 3.8% to a seasonally adjusted annual rate of 1.314 million units last month, with single-family construction rising for a fifth straight month and activity in the volatile multi-family sector rebounding solidly. Single-family housing starts fell in the Northeast. 
  • Builder confidence in the market for new single-family homes edged down one point in November but remained high, according to a National Association of Home Builders index. The index reading of 70 was the second-highest of 2019 following last month's 20-month high, driven by low mortgage rates and continued job growth. 
  • New York Fed President John Williams said he is content with the current position of monetary policy and interest rates, but the central bank should be prepared to act aggressively to anticipate negative shocks to the economy. Williams considers the U.S. economy to be "in a very good place" and inflation to be drifting up to the Fed's 2% longer-term goal. 
  • The U.S. Commerce Deparrtment reported that retail sales increased 0.3% in October and were up 3.1% from a year ago on rising motor vehicle purchases and gas prices.
  • The Federal Reserve reported industrial production declined 0.8% in October following a 0.3% drop in September. Business inventories were flat in September following a 0.1% dip in August, Commerce said.

Banking NewsBankingNews
Excelsior Growth Fund Can Help Your Small Business Customers

Excelsior Growth Fund (EGF) is NYBDC's nonprofit Community Development Financial Institution and IBANYS' exclusive online lending partner. Join the growing number of banks that work with EGF to offer their customers an affordable and responsible option when they do not qualify for traditional financing. EGF offers loans up to $500,000 with a convenient, digital process. Loans under $100,000 are disbursed within 5 business days.

 EGF's experienced team can work hand-in-hand with yours to develop a customized process to make referring seamless. To learn more about offering your customers a second look through EGF contact Bryan Doxford, SVP, at at at (212) 430-4512.

IBANYS Spotlight Is On...

New York Business Development Corporation (NYBDC) promotes and advances the business prosperity and economic welfare of New York State by providing small business loans. Throughout its 60-year history, NYBDC has provided thousands of small businesses, including start-ups, mature businesses, and minority- and women-owned businesses, with access to loans when they do not meet the requirements for traditional financing. Learn more at

Together with affiliates Excelsior Growth Fund ( ) and The 504 Company ( ), NYBDC offers small businesses access to suite of financing options that includes SBA 504, 7a and Community Advantage loans, as well as online alternative loans.  For more information, contact President & CEO Pat Mackrell:

Did You Know?

. . .That the modern mortgage has only been around since the 1930s, but the idea of a mortgage has been around for a lot longer. The idea of a "mortgage" started in England, and moved throughout the western world from 1190 onward. In America, mortgages at the turn of the century were different from those of today. In the early 1900s, homebuyers typically had to pay a 50% down payment with a 5 year amortization period. 

. . .Now you know. 
New York community banks play a key role in our state and local economies. Help spread the good news among our customers, business, elected leaders and the media!

John J. Witkowski
President & Chief Executive Officer

Stephen W. Rice
Director of Government Relations & Communications

Linda Gregware
Director of Administration & Membership Services

William Y. Crowell III
Legislative Counsel