Hoosier Banker 45 A Do-Something Washington Partisanship in Washington in recent years has led some to believe that Congress doesn’t “do” collaboration anymore. One party’s gain is seen as the other’s loss, making deals hard to come by. But many bankers who came to Washington in March for the American Bankers Association Government Relations Summit and other meetings got a slightly different vibe from the policymakers they met with. Yes, some members of Congress predictably held firm against significant changes to the Dodd-Frank Act. Yet others, informed – and perhaps worn down – by bankers’ true stories of how over-the-top rules were harming their customers were positive about the possibility of finally doing something for community banks. There’s a similar realistic-yet-optimistic attitude behind an effort by the two leaders of the Senate Banking Committee – Chairman Mike Crapo, R-Idaho, and Ranking Member Sherrod Brown, D-Ohio – to identify legislative changes that could help spur economic growth. They won’t pursue changes they don’t believe in, of course, but both see an opportunity to find and pursue common ground. These encouraging signs are made all the more hopeful by administration officials who have proactively reached out to community banks to learn what rules are acting as roadblocks to growth. In March, President Donald J. Trump invited nine community bankers to the White House for a roundtable discussion of the industry’s regulatory challenges. Though the bankers represented institutions with different business models, operated in different parts of the country and were affiliated with different national trade associations (six were part of ABA’s delegation; three were with the Independent Community Bankers of America), there was remarkable alignment in our policy positions and priorities. The same can be said for the follow-up meeting that Treasury Secretary Steven T. Mnuchin held with 16 community bankers in April. That’s where the secretary made clear how serious the administration was about helping banks perform their critical role in promoting economic growth. And it’s where we dug into the specifics of issues related to mortgage, agricultural and commercial lending, as well as Consumer Financial Protection Bureau rules that are illtailored for community banks. There again, ABA and ICBA members stood side-by-side, advocating practical solutions. Such alignment is critical to success in Washington. I’ve said before that Washington has enough challenges without trying to legislate issues on which an industry is divided. Policymakers up and down Pennsylvania Avenue are interested in addressing our problems, as long as we can agree on the best solutions. I am confident that the solutions we have proposed, detailed in white papers the ABA shared with Secretary Mnuchin following the meeting, are what’s right for America’s banks and the communities they serve. The white papers (available at aba.com/executive-orders) articulate how regulation in areas like capital, liquidity, fair lending and stress testing can be improved. They were informed by the deliberations in recent years of bankers who serve on our many councils and working groups and who represent banks of different business models and asset sizes. Solutions born of such diverse perspectives are always stronger by ensuring that they make sense for all banks. Given how intent this administration is about using banks to spur growth, and given the interest Congress has shown in providing some community bank regulatory relief, having strong solutions with unified industry backing just might make something happen in Washington again. HB Article author Robert S. Nichols President and CEO American Bankers Association nichols@aba.com FEATURE
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