Pub. 7 2017-2018 Issue 4

6 Positive Clichés Pave Way for 2018 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 A Word From CBA... A s 2017 drew to a close, the financial services industry got a pleasant reminder of two positive clichés: where there is a will, there is a way; and government relations is a process, not an event. After regulatory reform negotiations broke down in late October, lawmakers on both sides of the aisle continued the process and met in what some called “frenzied negotiations” and hammered out a compromise for financial regulatory re - form. While not perfect, the bill produced by this perseverance is a good first step toward a better regulatory framework for America’s banks. The involvedmoderate Democrats have said this is a first step; we’ll see. The same week the agreement was announced, your Col- orado Bankers Association was in regular conversation with Colorado’smembers of Congress. SenatorMichael Bennet, who was convinced to become an original co-sponsor of the bill, said his support of the compromise was a direct result of the many meetings he had with CBA staff and Colorado bankers. Now we will focus on getting this passed to become law. Then we can support other legislative options and turn our attention to reforms that can be sought in the regulatory agencies. While they’ve had the ability to make the changes we want all along, the political climate and other issues have stymied any reform. New leaders friendlier to business/banks are in place in the Federal Reserve Bank and the Office of the Comptroller of the Currency, the top spot at the Federal Depos- it Insurance Corporation has yet to be filled – andwe’ve all seen the CFPB turmoil. With the new leadership and perspective, we could quickly begin to see more of our goals actualized. The November announcement that Richard Cordray, chief of the Consumer Financial Protection Bureau, would step down fromhis position leaves the direction of the bureau in limbo. Bank advocates have been in regular communication with Treasury Secretary Steven Mnuchin as he acts on President Donald Trump’s Executive Order 13772 to lead a govern- ment-wide review of financial regulations. Bankers have filed a series of white papers on nearly a dozen key topics including the Volcker Rule, liquidity, stress testing, capital, fair lending, small dollar credit andmortgage lending. In an April letter to Mnuchin, the American Bankers As- sociation wrote, “The regulatory trend of recent years to im- pose standardization of loans and financial services products undermines community banks’ chief competitive advantage, instead rewarding firms that make their profit from the vol - ume of loans and services provided. This also disadvantages financial customers who are not “standard” but nevertheless credit-worthy. Moreover, standardizing the banking industry stifles in - novation, discourages entrepreneurial investment, punishes banks serving important market niches, and has compelled many banks to exit certain traditional lines of business.” Combined with changes already approved by the U.S. House, bankers have a real shot at rules that will allow them to focus on what they do best: helping their customers realize their dreams. Your bankers association will continue to press forward to garner support for the regulatory relief your banks – andmore importantly, your customers – need. Remember: where there is a will, there is a way; and government relations is a process, not an event. Thanks for your support. n Don Childears President and CEO Colorado Bankers Association