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Government Relations
Regulatory Update
Banking Agencies Issue Basel III Calculator
Federal banking agencies released a Basel III regulatory "capital estimation tool" for community banks to estimate the impact of the proposed rules. Each bank should comment by the Oct. 22 comment deadline on how the Basel III proposal will affect the bank's risk-based capital ratios. Read more.
IMF: Basel Proposals May Drive Consolidation
Basel III proposed regulatory capital standards might allow large banking organizations to become even more prominent and further concentrate the banking sector, the International Monetary Fund wrote in a new report. The latest update to the IMF's Global Financial Stability Report finds that large banks with advantages of scale may be better able to absorb the costs of the regulations, which would apply to all U.S. banks unless changed by policymakers. Read more.
Industry Concerned with FASB Proposal
The Financial Accounting Standards Board's proposal to update disclosures about liquidity risk and interest rate risk would have an adverse impact on community banks. It would require all banks, regardless of size, to include new, complex tabular disclosures in their financial statement footnotes to cover certain risks attributable to changes in liquidity position and interest rates. Read more.
Note: IBANYS' CFO Peer Group Council recently discussed the proposal and with the assistance of Jamie Keiser, CPA, The Bonadio Group, has drafted a comment letter in advance of the 9/25 deadline.
GAO: Interchange Exemption Doesn't Work
A new Government Accountability Office study found community banks, supposedly exempt from government price controls on debit card interchange, have experienced a decrease in average interchange fees. Read more.
FDIC Revises Violation Classifications
The FDIC Division of Depositor and Consumer Protection has revised the classification system for citing violations identified during compliance exams. The new system replaces the current two-level system and will be used in exams started on or after Oct. 1.
Regulators also released updated estimates of median family incomes to determine income levels of geographies in CRA performance evaluations. The 2012 update is based on the U.S. Census Bureau's American Community Survey.
Legislative Issues
House Passes Muni Advisors Bill
The House passed ICBA-advocated legislation to exempt banks and their employees from new municipal advisor registration requirements. H.R. 2827 would prevent community banks and their employees from having to register as municipal advisors with and be examined by the SEC. Read more.
Senate Banking Committee & The Reg-Relief Bill
ICBA called on the Senate Banking Committee to advance House-passed reforms that would improve the legal environment for community banks, including eliminating an unnecessary and burdensome ATM fee, and a provision related to confidential information provided by banks to the CFPB. Read more.
In New York: Results of NYS Senate Primaries
Incumbent GOP State Sen. Steve Saland won the GOP primary in the 41st NYS Senate District by 107 votes. Saratoga County Clerk Kathy Marchione is the apparent winner in the GOP primary in the 43rd District over incumbent Sen. Roy McDonald, who is deciding whether to run on the Independence line. Republicans worry a three-way race there could benefit Democrat Robin Andrews. The Erie County Board of Elections is counting ballots in the undecided 63rd District Democratic primary between Betty Jean Grant and incumbent Sen. Tim Kennedy. Buffalo GOP Sen. Mark Grisanti won his primary, but faces a three-way contest, as does Sen. Saland. Both voted for the legalization of same-sex marriage, as did Sen. McDonald. Cecilia Tkaczyk won the Democrat primary in the newly created 46th District and will face GOP Assemblyman George Amedore.
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