Straight Talk

Moving From Navigator

“to Lighthouse I have watched over the last several weeks as bankers in Kentucky and across the country have “worked themselves to the bone” as my ole granny used to say! No one, anywhere, can say that bankers all across this country didn’t come to the call of their government and their communities when needed. But, that’s today! What’s next? That question is the one haunting me all day and every night when my head hits the pillow. I know our members and the KBA will face whatever comes, and we’ll do what’s right in the right way. But what will that look like? Until some answers become clear enough to help inform our next steps, a good night’s sleep will be hard to come by. So, the KBA is committing all our resources to getting you the best advice, counsel and direction that can be had. At our virtual group meetings, we will have Dr. Paul Godfrey, William and Roceil Low Professor of Business Strategy at BYU Marriott School of Management, joining us for what he sees as the possible future business strategies specifically for Kentucky banks. How specific? We’ve spent hours on the phone with him making sure his preparation will account for all issues affecting Kentucky’s economy, including our state and community demographics and Fed data on exports/imports and manufacturing as well as small businesses. The result should be specific enough to be extremely useful to you and your communities but also general enough to address the needs we’ll share with the rest of the country –– no one will be spared this new normal. We have also lined up some exceptional thinkers on business strategies and on the legal ramifications of expanding services like lobby access. We are very fortunate to have Congressman Andy Barr and Senate Leader Mitch McConnell in our corner, but even they aren’t immune to the bureaucracies in Washington. They and their staffs (BIG shout out to Tiffany Ge in Senator McConnell’s office and Dan Taylor in Congressman Barr’s office) are pushing every day to get the SBA and Treasury to pick up the pace of guidance on all issues. What changes can we expect from FDIC insurance premiums due to EIP checks or PPP loan proceeds sitting in checking accounts? When will banks get their loan fees? What happens when a customer goes into default with the 100% guarantee? These are just a few of the daily conversations going on all around us. Debra Stamper has been a great resource for our banks on navigating through the PPP process. She has acquired superstar status among some of our peer associations! That type of support will continue for the foreseeable future. But it’s becoming clear that our members will also need us to function as a lighthouse, doing all that we can to shine a light on the perils that can only be avoided with plenty of warning. So, to that end, continue to share with us your needs, concerns, fears and solutions. That’s how we will make the most of our Association in protecting our industry and our Commonwealth.

But it’s becoming clear that our members will also need us to function as a lighthouse, doing all that we can to shine a light on the perils that can only be avoided with plenty of warning.

Meanwhile, we’ve been gathering your concerns daily –– whether the local economy, operations cost in a low revenue environment, personnel issues, or reputational risk on loan defaults –– and pushing those through to our Congressional members and our consultant staff.