FEDERAL DELEGATE REPORT
Federal Delegate Report
— Valerie Anderson-Boudaka, ICBA National Director, Farmers State Bank of Canton, Canton, SD
At the time of writing this article, it’s the beginning of February and only 37 days until ICBA LIVE in Honolulu! Can you tell I’m excited? By the time this article reaches your desk, our suntans will be fading but we will be seeing each other again soon this spring at the Capital Summit!
Advocacy is a pillar of ICBA’s commitment to community banks. Our approach advocates for common-sense reforms on behalf of community banks and the communities we serve. Here are some of the most important hot button issues and ICBA’s ongoing work:
Climate Risk Regulation
ICBA is opposing proposals that create new mandates regarding climate risk. Current proposals include stress testing for the impact of weather-related events on bank-held assets, concentration limits, increased disclosures, and reporting greenhouse gas emissions to the federal government.
Durbin Amendment Expansion
ICBA opposed legislation to create new credit card routing mandates. The Credit Card Competition Act of 2022 would apply to banks over $100 billion in assets, but community banks would be forced to subsidize the costly system wide changes. This system could put consumer data at risk. ICBA defeated efforts to pass this legislation in Congress.
Small Business Loan Data Collection- Section 1071
CFPB’s proposed rule would require banks to collect and report data on loan application from small business. This includes agriculture loans. The rule would apply to banks that originated 25 or more small business loans per year. By the time of this publication, we may have final rules. The ICBA is urging the CFPB to exempt community banks below $1.3 billion in assets, collect only statutorily mandated data, and keep small business borrower information private.
In the 118th Congress, ICBA expects focus on regulation of fintech and crypto assets, the SAFE Banking Act, climate risk, tax cut extensions, and agency oversight.
Lastly, registration is open for the Capital Summit on May 14-17. Let’s show Washington DC that community banks are essential to the prosperity of Main Street America! I hope to see everyone there.