August Recess Lends Itself to Grassroots Activity

by Ava F. Roberts VP/Director of Government Relations Bankers across the state took the opportunity of August recess to sit-down with their Congressman or Senator for thoughtful discussion regarding the state of the federal regulatory impact on Arkansas banks and the customer experience. One such opportunity presented itself on August 21 at a Round Table with Senator Tom Cotton and Acting Comptroller of the Currency Keith Noreika. Both shared the common goal of having a fruitful and open dialogue with Arkansas bankers about the impact of federal regulations. The Comptroller wanted no spare time during his trip to Arkansas, so ABA’s Government Relations team worked hard to accommodate. Our Monday morning started with breakfast at the Capital Hotel. Seven bankers, all OCC banks, sat down at the table ready to work. Our discussion ranged from the tenure of CFPB’s Director to many vivid and detailed customer impact stories. Both the Senator and Comptroller asked thoughtful questions regarding these stories that ranged from customers texting a banker to ask why he has to send all of this information just to qualify for a loan, to making a small home loan work for a church member. The Senator and Comptroller were particularly intrigued when one banker explained we cannot make the same loans we have in the past because we fear regulatory repercussions. Hearing these anecdotes one-on-one from constituents is invaluable to Washington decision-makers. Later that morning, the Round Table took place at the Robinson Center. The room was filled with over forty attendees, ranging from OCC banks to state banks, and representatives from the Venture Center to community business people. We immediately opened the floor for questions and the next two hours was filed with animated dialogue and airing of issues that need immediate attention from Washington. Wasting no time, one banker took the floor to ask what are we doing now to actually make changes to overburdensome regulations? Comptroller Noreika said we should get more change when there is a new CFPB Director appointed, while Senator Cotton reminded us that they still have to finish making appointments, noting Congress was starting to move in that regard. Conversation followed regarding the CHOICE Act, which Noreika referenced as setting the tone in D.C. as a sort of to-do list that motivates agencies to do something. However, Cotton reminded us that the CHOICE Act will be difficult to get through as is, even though it has good parts with bi-partisan support. He explained that political pressure due to the coming elections may lend pressure to movement. Regulatory thresholds force banks to make decisions about growth by having to grow just to pay for compliance matters, one banker explained. The conversation then pivoted to marijuana banking. With both the Senator and Comptroller at a loss for Special thanks to those of you who joined our early morning breakfast meeting with Comptroller Noreika and Senator Cotton. The stories you shared and the discussion you facilitated certainly impacted our guests. Dwight Rutland, President of Armor Bank, Forrest City; and Larry Wilson, Chairman & CEO of First Arkansas Bank & Trust, Jacksonville. Representatives from the Small Business Administration chat with Acting Comptroller of the Currency Keith Noreika and Senator Tom Cotton before the Round Table.

Thank you to our Round Table attendees! You certainly led a two-hour discussion with our Washington guests.

Advocacy efforts are alive and well with each of you. The extra time and energy you put into our event is so appreciated.

advice on what to do, bankers took to explaining the far reaching repercussions of the legalization in Arkansas. One attendee highlighted the rumor that Credit Unions are able to service marijuana customers in other states without the same consequences banks may face. Another attendee explained we’ve been told to poll our doctors to see who is writing prescriptions. The Comptroller explained regulators have to be sensible about where to draw the line while simultaneously not condoning the activity. At that point, the Arkansas Bank Commissioner explained, that is the challenge for banks who are trying to bank customers who have had business at that institution for many years; these people deserve to be banked and it is dangerous not to. Bankers were quick to supply her explanation with examples, from a customer who owns a strip mall and leases 10% of the property to someone in the marijuana business, to the dilemma of taking deposits from air conditioning service people who serve marijuana businesses. The Senator and Comptroller listened attentively, with Senator Cotton declaring they will look at these issues. The day culminated with dinner in the wine cellar at the Capital Hotel. Everyone was relaxed at this intimate event. A bit of business commenced with a discussion of OCC examiners with boots on the ground versus those in Washington. The seeming lack of communication between regulators was conveyed and the Comptroller listened and acknowledged this issue needs to change. Discussion also turned to the attitude of federal regulators, pointing out those with superior or all-knowing positions toward the banks examined. This candid discussion is an example of why August recess meetings are held; sitting with our delegation on our home turf usually makes for bold and necessary conversation. Bankers led the discussion at the Round Table and should be very proud of their advocacy efforts. August 21 was not the only day bankers met with our federal delegation during the August recess. Many other bankers sat down with their Congressman or Senator throughout the state and ABA commends them on their dedication and hard work. Thank you for making time for grassroots efforts; they pay off! There are many ways to follow up, continue the advocacy, and pursue change in our industry. One way is to attend the Fall Washington Trip October 3-5, in Washington D.C. Another way is to send stories and examples of regulations’ impact on the customer experience. Contact Ava at ava.roberts@arkbankers. org or 501-978-3606 to learn more about our grassroots efforts or inquire about our fall or spring visits to Washington.

Nearly two hours of candid exchange between bankers, business leaders, the Senator and Comptroller constituted a successful August Recess Round Table.

Those of you who joined us for dinner, thank you. Your camaraderie and your focused discussion of regulatory burden is exactly what grassroots efforts is about. We cannot do it without you.