What Keeps Me Awake at Night?

Many years ago, at bank management meetings, our bank owner asked, “What is keeping you awake at night?” I never sleep well at night, so he was not referring to the answers in my head, such as “Why is Def Leppard spelled Def Leppard and not Deaf Leopard?” “Why are they even called Def Leppard?” (Go ahead and Google it now–I am sure you are wondering the same thing.) “What are the lyrics to the Alan Parsons Project song from 1984?” “Why am I counting sheep in multiples of three? Why not multiples of four?” enforcement badge. ECORA (Enhancing Credit Opportunities in Rural America) is a bill that allows traditional banks to compete on a level playing field with Farm Credit. This bill would remove taxation on income from farm real estate loans, rural home mortgage loans, and towns of less than 2,500 in population. These legislative acts will strengthen our banks and help us better serve our customers.

I cannot avoid worrying about the ripple effects and severe impact on our industry as these national economic shifts continue. I lose sleep, hoping we are not facing another year like 2008. Or even worse, another year like 1980. Bankers, however, are tough, and we will overcome whatever hurdles the economy throws in front of us, but that does not prevent us from losing sleep over the struggle.

It seems we are always on the defensive with our federal government, and the only way to keep them from stealing our sleep is to get on the offense. That means getting engaged and getting active.

Traditionally, the concerns that have kept me awake over the years were commercial loan customers hitting weekly overdrafts and creeping up on 25 days past due. Or the upcoming Consumer Affairs examination. (Did we correctly check box 27 on the HMDA LAR on each of our 2,453 loans?) Or maybe I was thinking about that young banker who has so much potential but just doesn’t have the drive to succeed. From time to time, I suspect we all have lost sleep over such issues. The recession is looming, and interest rates are continuing to rise. Like you,

For the last few years, we have been campaigning for two bills that will reposition us to the offense, and unless you are a Rip Van Winkle who has been asleep for twenty years, you know the details of these programs. The SAFE ACT (Secure and Fair Enforcement) would allow banks to serve cannabis-related businesses in states where cannabis is legal. SAFE also specifies that handling proceeds from the legitimate transactions of cannabis-related companies is not money laundering and does not violate any provision of federal law. We want to be bankers—we do not want to wear the law

Here is another call to action. With upcoming elections, we each should work hard to elect " bank-friendly officials.” We need legislators in Washington D.C. and Little Rock who understand the adverse effects of over-regulation. We need legislators who see our perspective and defend our industry against burdensome legislation. We are one of the most highly regulated industries in the country, and while new regulations are added, none are removed. This rule-heavy system is eroding our customer base. People are turning to far less encumbered credit unions or to digital currency, which is essentially rule-free, damaging the traditional banking system. With the right legislators, we can accomplish more and accomplish it quicker, mitigating these negative trends in our banking.

As chairman of ABA, I cannot help but lose a little sleep about our industry. Are we becoming dinosaurs? Or are we the same resilient financial backbone of our country, state, and communities that we have always been? The best defense is a potent offense, and we have the knowledge and skill to charge ahead, winning for our industry and our customers.

By the way, the Alan Parson Project song from 1984 was “Eye in the Sky.” Google the lyrics.

Sweet Dreams!