Potential consequences of the proposed reduction also include: • The need for banks to increase borrowing costs and fees for other services, which will negatively impact customers who may not qualify for credit card products or other alternatives; • The discontinuation of a bank’s lowest-margin products, thus reducing access to affordable basic banking services for low- and moderate-income individuals and families; and • The financial pressure on banks approaching the $10 billion threshold may lead to a significant increase in bank consolidations. 2. Credit Card Routing Bill: Sens. Roger Marshall (R-KS) and Dick Durbin (D-IL) introduced the Credit Card Competition Act in 2023, which would extend Durbin’s network mandates to credit cards for card issuers with assets over $100 billion. Reps. Peter Welch (D-VT) and Lance Gooden (R-TX) have introduced a House version of the deeply flawed and harmful Credit Card Competition Act. Both bills failed to gain traction and any additional cosponsors as standalone proposals, so their authors attempted to add the legislation as an amendment to a must-pass piece of legislation like the omnibus spending bill. Senator “Over my 16-year tenure with Bankers’ Bank of the West, every minute of our work has been dedicated to bringing solid expertise, services, and products to ensure community banks sustain a competitive edge. We’ve certainly grown strong as partners, looking out for each other—and we look forward to continuing that tradition.” Bankers’ Bank of the West LOAN PARTICIPATIONS|MERCHANT SERVICES|ATM DEBIT|WIRES bbwest.com | 800-873-4722 www.bbwest.com President and CEO Bill Mitchell We Champion Community Banking Member FDIC Marshall has vowed to attempt to add the bill to any must‑pass legislation. We anticipate this legislation will be introduced again this year. 3. Overdrafts: CFPB Director Chopra announced a new push to eliminate or greatly reduce the ability to charge overdraft fees. The agency already targeted NSF fees. 4. Capital Increases: FDIC Chair Martin Gruenberg called for stricter capital requirements for midsize banks. He stated this would apply to all banks $100 billion and over. Rules are not yet drafted. We are working with the American Bankers Association and other states to respond and express bankers’ concerns. Lastly, please join us at our annual Legislative Briefing, which is scheduled for March 6 at the History Colorado Center. Take advantage of this unique opportunity to engage with elected officials in a meet-and-greet setting. Attendees will not only gain valuable insights into the issues being addressed in the legislative session but will also have a chance to build relationships with legislators to foster collaboration and ensure their voices are heard in shaping policies that impact the banking industry. This event is free for CBA bank members. Space is limited, so please register soon. Questions? Contact Lindsay at lindsay@coloradobankers.org or (303) 825-1575. 5 Colorado Banker
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