Pub. 2 2014 Issue 3

www.uba.org 4 U tah is the 5th largest banking state in America. In fact, Utah is head- quarters for six banks with over $10 billion in assets, only New York has more with seven. People get so used to hearing about the strength of Utah’s economy, and our top rankings in so many areas, why should it be such a surprise to learn that Utah has also become a leading banking center? It shouldn’t be a surprise because they are directly connected. The same things that make Utah a leader in so many areas make Utah a great place to charter a bank. We have a predictable, pro-business regulatory environment, great banking laws, a great workforce, great infrastructure, and Utah is simply one of the greatest places to live and raise a family. But the connection goes both ways, one of the big reasons our economy is so vibrant is because of the strong banking sector. Last year, banks made nearly $5 billion in investments and loans into low to moderate income communities, paid more than $5.5 billion in taxes, contrib- uted more than $50 million in charitable donations, provided more than 400,000 hours of community service, in addition to providing quality, high-wage jobs to thousands of Utahns. The fact of the matter is, banks are integrally connected to the communi- ties they serve. When banks are strong, communities and economies are strong and conversely, when communities and economies are strong, banks are strong. During the recent economic crisis, it became politically expedient to paint an entirely different picture of the relation- ship between banks and the community. Politicians looking for a scapegoat sought to separate and isolate banks from the rest of the economy and blame them for the collapse. This misguided narrative led to a massive increase in punitive regulations that have cost the banking industry bil- lions of dollars to implement and driven hundreds of banks out of existence. But none of this political rhetoric can change the fact that banks, by their very nature, are simply a reflection of the com- munities they serve. If the community is suffering, the bank will suffer. So it is no surprise that when Congress decided to punish banks, they ended up punishing our communities and our economy. There is no other explanation for the anemic economic recovery the country is suffering through. When Congress and the President declared war on banks, they declared war on our economy and the growth of our communities. And believe it or not, there are those politicians who believe we have not yet done enough to punish the banks. Watch out! Meanwhile in Utah, we are leading the nation in various measures of economic growth and jobs. And guess what, last quarter the performance of Utah’s banks led the nation. Is there a relationship between Utah’s top economic perfor- mance and the fact that we are now the 5th largest banking state in America? Is there a relationship between the strength of Utah’s banks and the success of Utah’s economy? Absolutely! Bankers fully understand the fact that when our communities are strong, we are strong. That’s why we volunteer, make donations, and gladly pay taxes to support our schools, build streets and promote public safety. That’s why we serve on school boards and city councils and lead the Rotary, Kiwanis and local Chambers of Commerce. And the sooner Congress recognizes that banks are in- separably connected to the communities they serve, and stops punishing them, the better for all of us! n The Bottom Line By Howard Headlee, President, Utah Bankers Association Utah, A Great Place to Charter a Bank