REFLECTING ON THE IMPORTANCE Alliance of State Bankers Associations

Fred L. Green III, President & CEO

The Alliance of State Bankers Associations and the American Bankers Association is probably the most impactful industry political advocacy group in the country. Many South Carolina bankers are not aware of this impactful group and I had planned to describe it in this edition of The Palmetto Banker. After reading my good friend Duncan Campbell’s article in his Pennsylvania Bankers Association Magazine, I realized he did a fabulous job in describing our alliance, so I’ve gained his permission to reprint his letter.

I’m writing this column, having just passed the leadership baton of the Alliance of State Bankers Associations (Alliance) to my friend and colleague, Fred Green of South Carolina. The Alliance is a critically important tool for our industry’s advocacy efforts that many of you reading this article may not be familiar with, but now you will be. I have had the honor of serving as its Chair for the past twelve months, and also serving as a member of the American Bankers Association (ABA) board of directors, as a result of this leadership position with the Alliance.

The Alliance is, as what you might expect, a coalition of state bankers associations. What does the Alliance do? Well, for starters, 51 state bankers associations (Puerto Rico is the 51st member of this Alliance) come together with the ABA to develop unified policy positions on legislative and regulatory issues ranging from representment to ESG and everything in between. If you have ever joined us for a Washington regulatory visit or legislative trip, you are familiar with the array of topics we cover with policymakers.

The unity of message that this Alliance can deliver to 100 US Senators and our federal regulatory agencies is a differentiator amongst other industries in Washington. In the past congressional session, the Alliance and its 51 state association members and the ABA have communicated support or opposition to Congress and the federal regulatory agencies on the following issues:

Just consider if PA Bankers were to voice a position on one of these issues to Senator Toomey, while the South Carolina Bankers voiced a counter position to Senator Tim Scott on the same issue. Senator Toomey and Senator Scott have both proven themselves to be major allies to the industry, and so having a divided position would likely cause them to tell us to go back and figure it out before seeking their support. This fracture would not inure to our industry’s benefit in this example. Consistency of messaging means all the difference as we work to present a unified policy front, and that’s exactly what our industry gets from the Alliance.

Another strength of the Alliance is our ability to work together, politically. The federal political action committees of most of the state associations are formally affiliated, which means that, as an industry and in coordination with the ABA, we are able to collectively provide political support to those members of Congress who support the banking industry—pro-banking, probusiness, bipartisan candidates. Leveraging the political strength that comes from the members of the state bankers association and the ABA, has a tremendously positive impact for the industry. The PAC efforts, combined with the Voter Education Fund engagement by the state association memberships, translates to millions of dollars of industry support, differentiating our industry from others, vis a’vis relevance with policymakers.

Beyond the policy and political benefits of the Alliance, I learn daily from my colleagues that lead these other state associations. We talk regularly. We give each other support. We steal ideas from each other (stealing is a permitted principle of the Alliance). Most of all, we respect each other. With the issues that we are constantly confronting as an industry, being able to look to your left and to your right and seeing people that you trust by your side, gives all of us the confidence we need to represent our members and our industry to the fullest.