Pub. 2 2012-2013 Issue 5

O V E R A C E N T U R Y : B U I L D I N G B E T T E R B A N K S - H E L P I N G C O L O R A D A N S R E A L I Z E D R E A M S March • April 2013 5 Create a Positive Agenda for Our State Dear CBA Members, A topic that many bankers address during the first quarter of a new year is “what is going on in the economy?” We need to be students of the economy in order to develop our own business plans and create achievable budget forecasts. We need to know whether to project loan and deposit growth. We need to understand the labor force. We need to know if employees will be available, and what the cost of those employees will be. We need to know what impact new regulations in healthcare reform will have on our industry as well as the economy at large. We also need this economic information to support our customers. We need to know what questions to ask them, to help understand their business needs and their own financial forecasts. Good bankers need economic insights to not only run our own business, but also to be a value added to our customers; in essence to be a trusted advisor. If our customers have access to good information they can plan effectively for the future, they can help create jobs and help our economy recover. What is the general consensus regarding the economy for 2013? Most believe that 2013 will be a year of transi- tion to stronger growth. • GDP growth in 2013’s forecast will be 2.5%, up from 2% in 2012. • Colorado job growth will be up 49,000 jobs or 2.1%. Growth was 1.8% or 40,000 jobs in 2012. • Areas of strength (Industry) • Energy • Technology • Retail sales • Professional and business services • Healthcare • Construction (new housing permits) • Areas of weakness (Industry) • Manufacturing • Mining • Government One of the major impediments to sustainable growth continues to be an ineffective US Congress. As leaders of the banking industry and of the Colorado business community, we need to stay engaged with our congressional delegation. We need to work with the Colorado Bankers Association to: A. Understand the impact of the Affordable Care Act on our industry and on our customers. Many of our small business customers, especially in the hospitality business, are concerned about rising costs and the pressure to reduce the number of full-time employees in order to comply with the Affordable Care Act. We need to stay engaged to ensure negative, unintended consequences can be avoided by adjusting this law as necessary. B. Monitor the implementation of the Dodd Frank Act and the Consumer Financial Protection Bureau. This lengthy, exhausting piece of legislation will need to be reformed in order to not negatively impact our industry and the overall economy. This is especially true as it relates to mortgage lending and new rules issued by the CFPB. I believe one of the biggest risks facing our industry is excessive regulation, which makes it harder to provide loans to our customers and greatly increases our operating costs. C. The most important issue that we need to address is the debt and deficit issues facing our economy. We must hold our congressional leaders accountable and we must demand that they come up with a balanced strategy reducing our government spending and debt. They need to work to reform the tax code, to create new revenues, along the lines of the Simpson Bowles report issued now over two years ago. The looming cuts required by the sequester and a potential default of the US debt and a potential downgrade of that debt, is unacceptable and could drive us all back into recession. It is time for our congressional leaders to put aside partisan issues and Q Chairman’s Message  continued on page 9