After a coffee reception and networking, the forum got started with remarks from Deputy Superintendent of Community and Regional Banks Martin Cofsky. You may remember Mr. Cofsky from IBANYS Convention 2011, where he was a featured panelist. He introduced Superintendent of Financial Services Benjamin Lawsky, who next addressed the crowd.  

Mr. Lawsky told the bankers in attendance that he wanted to have a "dialog, not a monolog." He added that nothing could be more important than his attitude toward community banking, saying that, "what you all do in your local communities could not be more underestimated."  

He outlined six different areas where DFS has been concentrating its efforts:

1. Creating five new divisions of the new DFS: banking, insurance, real estate finance, capital markets, financial frauds, and consumer protection
2. Overseeing the 2,200 entities the banking division regulates 
3. Concentrating on: usual supervision, working with federal counterparts, developing state charter advisory board, focus on foreclosure issues
4. Research 'un-banked' and 'underbanked' facilities and areas
5. The future of payment systems and the Department's role
6. Cyber Security, Banking Security issues, Fraud

The superintendent then outlined three priorities for the Department of Financial Services:

1. Getting the industries that regulate banking and insurance thrive again  

2. Protecting consumers  

3. Merge two entities as smoothly as possible (realizing savings of 10% of budget in first year alone according to Lawsky)

 Mr. Lawsky said that with attitudinal changes, the DFS could thrive and serve community bankers in the best way possible. He acknowledged that regulators did not always have to say "no" first, and that regulators also need to watch for unintended consequences of their actions. He added that when mistakes are made, they need to be recognized and be corrected.  

Before Mr. Lawsky turned the mic over to the next speaker, he did mention that the DFS would be putting on another forum somewhere upstate when the weather gets better.  

After a short break, speakers from the Real Estate Finance Division, and NYS Job Development Authority addressed the crowd, as well as speakers who presented on Troubled Debt Restructuring (TDR), and the New York State Legal Lending Limit.  

While most bankers seemed shy when it came time for the open forum portion of the meeting, others (including IBANYS Board Member Bob Fisher) eventually raised questions about aging upstate exam teams, the examination process, stress testing and portfolios, and updating banking regulations. The issue of hydrofracking also came up during the forum, and Mr. Lawsky remarked that the second forum to be held upstate would have a fracking component to it, because it is such a hot button issue right now.  

IBANYS will keep you up to date on all the latest from the DFS, and will let you know as soon as we hear about any upcoming meetings or forums in the upstate area.  

IBANYS would like to welcome yet another new Member Bank, Lake Shore Savings. This Dunkirk, NY based community bank was first chartered in 1891! 

Now with ten branches in Western New York, Lake Shore Savings covers a broad section of the region from Jamestown to north of Buffalo.  

Please help us to welcome President and CEO Daniel Reininga, and the rest of the staff at Lake Shore Savings to the IBANYS family!