Tag Archive for: Advocacy

Posts

, , ,

Thank You, 2021 WBA Advocacy Officers!

The Wisconsin Bankers Association Advocacy Officer list just crested 100, and we are looking for 25 additional banks to designate an Advocacy Officer by the end of the year. The Advocacy Officer program is a leadership opportunity to coordinate regulatory, legislative, and community advocacy efforts for the bank by working with WBA. Advocacy Officers work with other bankers, WBA staff, state, local, and federal levels of government, and other state or national trade groups.

A major event for Advocacy Officers will be the upcoming WBA Capitol Day in Madison on January 18, 2022. Participants will receive training and support to meet with their elected officials in the State Capitol and share their stories about how legislative issues impact their professions and their communities. While this is an important opportunity for Advocacy Officers, you do not need to be an Advocacy Officer to participate in WBA Capitol Day.

If your bank has not yet designated an Advocacy Officer, consider someone who has an interest in public policy, a strong understanding of the banking industry (compliance, credit, external relations, etc.), the ability to speak for the bank on matters of regulatory or public policy, and a fairly flexible schedule that is at their own discretion.

More advocacy officer voices speaking together as one to advance WBA’s legislative agenda can make a meaningful impact on very important issues like credit union expansion of powers and interchange fee prohibition.

Thank you to the banks that have already signed up to participate in the Advocacy Officer program:

American Bank of Beaver Dam
American National Bank – Fox Cities
Associated Bank
Badger Bank
Bank Five Nine
Bank of Lake Mills
Bank of Luxemburg
Bank of Mauston
Bank of Milton
Bank of Prairie du Sac
Bank of Sun Prairie
Bank of Wisconsin Dells
Bankers’ Bank
Baraboo State Bank
BLC Community Bank
Bluff View Bank
BMO Harris Central National Association
Bristol Morgan Bank
Capitol Bank
Charter Bank
Citizens Bank
Citizens First Bank
Citizens State Bank
Citizens State Bank of La Crosse
Citizens State Bank of Loyal
Commerce State Bank
Community Bank of Cameron
Community First Bank
Community State Bank
Cornerstone Community Bank
Dairy State Bank
Denmark State Bank
East Wisconsin Savings Bank
Farmers & Merchants Bank of Kendall
Farmers & Merchants State Bank
First Business Bank
First Citizens State Bank
First Community Bank Milton
First Federal Bank of Wisconsin
First Midwest Bank
First National Community Bank
First State Bank
Flagstar Bank, FSB
Fortifi Bank
Forward Bank
GreenLeaf Bank
Greenwoods State Bank
Horicon Bank
Hustisford State Bank
Incrediblebank
Independence State Bank
Intercity State Bank
Investors Community Bank
Ixonia Bank
John Deere Financial, F.S.B.
Johnson Bank
JPMorgan Chase Bank
Ladysmith Federal Savings and Loan Association
Laona State Bank
mBank
MidWestOne Bank
Monona Bank
Mound City Bank
National Exchange Bank and Trust
Nicolet National Bank
North Shore Bank
Northwestern Bank
Oak Bank
Old National Bank
One Community Bank
Oostburg State Bank
Park Bank
Partners Bank of Wisconsin
Peoples State Bank
PNC Bank
Premier Community Bank
PyraMax Bank, FSB
Quad City Bank and Trust
River Falls State Bank
Royal Bank
SENB Bank
Settlers Bank
Spring Bank
State Bank Financial
State Bank of Chilton
State Bank of Cross Plains
The Bank of Brodhead
The Bank of New Glarus
The Equitable Bank, S.S.B.
The Farmers State Bank of Waupaca
The Huntington National Bank
The International Bank of Amherst
The Park Bank
The Peoples Community Bank
The Pineries Bank
The Port Washington State Bank
The Stephenson National Bank and Trust
Tomahawk Community Bank
Town Bank
U.S. Bank National Association
Unity Bank
Waldo State Bank
Waukesha State Bank
Wells Fargo Bank
Westbury Bank
Wisconsin Bank & Trust
Wolf River Community Bank
WoodTrust Bank

/by
American flag flying in front of Capitol Building
, ,

Executive Letter: Advocating for Wisconsin Banks in Washington D.C.

Rose Oswald PoelsBy Rose Oswald Poels

Last week for the first time in two years, I was back in Washington D.C. with a small group of nine bankers from Wisconsin for meetings with banking regulators and a few members of Congress. Joining WBA was a delegation of six bankers and two staff from the Illinois Bankers Association. While our meetings with regulators were still virtual, all meetings were productive affording the smaller group of bankers ample time to ask questions and hear directly from senior officials about a wide variety of issues.

We began the first day in the afternoon with briefings from the FDIC and OCC. FDIC Board Director Martin Gruenberg led the conversation highlighting the fact that while the FDIC anticipated stress in the banking system heading into the pandemic that did not materialize and notably, there have not been any bank failures in 2021. Areas of focus for the FDIC remain on commercial real estate, tailoring climate change risk concerns based on the impact to different markets and/or the size of the institution, and on the impact of non-bank companies to the financial system. OCC Acting Director Michael Hsu led the discussion with bankers emphasizing his support for community banks, his understanding of the need to tailor regulation to the size and complexity of each institution, and robust discussions around both FinTechs and climate change.

The next day featured conversations with FinCEN and CFPB. Naturally, the discussion with FinCEN was largely around the status of their development of a beneficial ownership registry which remains in process. Until one is finally launched, banks will still have to follow the current beneficial ownership rules. A representative from FinCEN’s Financial Intelligence Division indicated that they have seen an increase in all types of crime notably COVID-19 fraud, work at home scams, cyberthreats of all types (e.g. ransomware and account takeovers), and illicit use of cryptocurrency. The primary focus of our conversation and questions with the CFPB was around the upcoming Section 1071, small business data collection proposal. The bankers took turns stressing the hardships of the current proposal and asking for an extension of the comment period deadline so that the industry had adequate time to respond to the many issues raised in the over 900-page document. CFPB staff indicated that they have been in meetings with the core providers on this proposal already to help prep them ahead of time so that data collection would be easier once the proposal is finalized.

These meetings are impactful largely due to the proactive engagement of the bankers in the room. I encourage you to take advantage of these opportunities as they arise and be involved because each regulator we met with unequivocally stated they want to hear directly from bankers about the impact proposals have on their operations. While WBA certainly represents the industry’s concerns, bankers truly make the best advocates in sharing specific examples about the impact on the operations of individual banks.

/by
, , ,

Oppose IRS Reporting Proposal to Protect Privacy

Dan Peterson

By Daniel J. Peterson, president and CEO of The Stephenson National Bank & Trust

We typically do not raise issues occurring in Washington with the public, but because the people in our community are important to us, we want to inform our neighbors of proposed legislation that could significantly impact millions of families and small businesses.

There is currently proposed legislation that, if enacted, would require all financial institutions to report to the IRS the gross financial inflows and outflows of every business and personal customer account above $10,000. The proposal would use banks as a third-party information source to find and report taxpayers’ income.

As a bank, The Stephenson National Bank & Trust strongly believes in protecting our customers’ private financial information. We only collect personal, financial data for the purpose of serving consumers and businesses – and we do our utmost to safeguard their money and their privacy. The proposal would require financial institutions to transfer a large amount of personal data to the IRS, significantly more data than has been shared with the IRS before. The IRS is already a common target for cyberattacks (approximately 1.4 billion attacks annually) due to the amount of personal data currently in its control. Therefore, adding a new set of sensitive consumer data puts the privacy and financial data of millions of Americans at greater risk.

We felt it was important to share this information with the public so each individual can determine whether to take action. If a person would like to express their opinion, they may contact their member of Congress.

/by
Finger pressing donate button on keyboard
, ,

Executive Letter: WBA Staff Raise Over $6,000 for United Way

Rose Oswald PoelsBy Rose Oswald Poels

A focus on community is one of the values the Wisconsin Bankers Association staff shares with our members. Last week, WBA held an annual fundraiser for staff to help raise money for the United Way. As an organization, we strive to be advocates for the wellbeing of our community. This fundraiser provides an opportunity to engage with the social and societal issues such as education, health, poverty, and income that in turn impact the communities our banks and employees are a part of.

The United Way focuses on building stability and establishing diverse communities, a goal that aligns well with the banking industry and its ability to thrive. The vision of the organization involves every aspect of a family, from preparing children for education through decreasing poverty and homelessness to identifying and treating health issues early.

The fundraiser was a three-day event and included an assortment of treats, raffles for staff-favored items, stickers for casual dress days, and the ability to e-pledge. We set an ambitious goal this year to help raise $5,500 for the United Way and our community and welcomed any amount that staff members were willing to donate. Although participation in the event was not required, I am excited and pleased to announce that the staff of 45 people raised over $6,000 in pledges!

Coming together for a common goal was also an opportunity to promote a positive workplace culture. Employees commented that they enjoyed the chance to connect with colleagues they don’t necessarily work with on a day-to-day basis and that they liked having an easy way to get involved in a service activity together.

I am proud of our staff members who donated on behalf of our association and continue to advocate for the communities around us. Like our member banks and Associate Members, we at WBA are eager to empower the communities that we live and work in

/by

Advocacy on Regulatory Modernization

In addition to the Wisconsin Bankers Association’s advocacy in opposition to Assembly Bill 478, WBA Director – Government Relations John Cronin and Capitol Bank SVP/Retail Banking and Chief Compliance Officer Gary Kuter testified in favor of Assembly Bill 596 at Wednesday’s hearing held by the Assembly Committee on Financial Institutions. AB 596 is designed to update several statutes relating to banking practices. WBA is very appreciative of the efforts of Rep. Terry Katsma and Sen. Howard Marklein for bringing this legislation forward.

In many ways, banks are the cornerstones of Wisconsin’s communities, having long provided services to individuals and business customers. Bankers relish the opportunity to build and maintain relationships and offer products that help propel Wisconsin’s diverse and vibrant economy.

Banks are also subject to many rules and regulations and are regularly examined for safety and soundness. Therefore, regulatory compliance, operations, and security are key areas of emphasis for financial institutions both large and small.

AB 596 will help us realize efficiencies in all three of these areas without jeopardizing safety and soundness. The common-sense pieces of regulatory relief in this legislation will allow our members to spend more time focusing on what’s most important: serving their customers.

/by
Woman speaking at hearing for Assembly Bill 478
,

Eighty-seven Banks Sign on to Letter and Testify in Opposition to Credit Union Expansion

Wisconsin Bankers Association Opposes Assembly Bill 478, Which Would Expand Authorized Activities and Powers of Credit Unions

At today’s hearing of the Assembly Committee on Financial Institutions, the Wisconsin Bankers Association and member bankers from around the state expressed opposition to Assembly Bill 478, which would provide credit unions with even more tools to grow beyond the intention of their original chartered mission much to the detriment of Wisconsin’s taxpaying banks and citizens.

In the early history of the existence of credit unions, they were either employer-based or focused on serving well-defined neighborhoods to serve consumers of modest means, which is the rationale for their income tax-exempt status. It is not difficult today for almost anyone to become eligible for membership in one of Wisconsin’s growth-oriented $1 billion and larger credit unions. In the past eight years, Wisconsin has seen the acquisition of five tax-paying community banks to large credit unions, which translates to a direct loss of tax revenue for the State of Wisconsin.

“Continuing to require that credit unions only do business with members is inherent in the public policy rationale behind which the tax exemption is given,” testified WBA President and CEO Rose Oswald Poels. “Making a substantive change to this foundational public policy principle as proposed in AB 478 should then also call into question, as other states have, the state tax exemption.”

“In Wisconsin, there are 13 credit unions that are over $1 billion in asset size that compete daily with banks like mine across the state. The services offered are no different than those offered by banks, and yet the credit unions enjoy a significant advantage in their income tax-exempt status,” testified Capitol Bank President and CEO and WBA Board Chair Ken Thompson. “Capitol Bank regularly experiences competition from growth-oriented credit unions operating in our market. . . Competition is normally healthy and good for consumers when all parties involved operate on a level playing field. However, that is not the case with the credit union industry.”

Joining WBA on a letter respectfully opposing Assembly Bill 478 as drafted are 87 banks from around the state. The letter explains that taxpayers can no longer afford to continue subsidizing the credit union industry; the goal is to have these large, aggressive credit unions return to their original mission or become subject to the same regulatory, supervisory, and tax requirements as banks.

/by
,

WBA’s Grassroots Advocacy on Credit Unions

Following the latest acquisition of a Wisconsin community bank by a credit union, WBA has written to Wisconsin’s Federal Congressional delegation and to members of the Wisconsin State Assembly Committee on Financial Institutions to further illustrate that it’s time for growth-oriented credit unions to be paying their fair share of taxes. Read the letter below:

Yesterday, Dupaco Community Credit Union, a $2.6 billion credit union headquartered in Iowa, announced their acquisition of Home Savings Bank in Madison. According to the joint release, the strategic acquisition will increase Dupaco’s total number of branches to 20 and total assets to approximately $2.8 billion based on 2021 financial data.

A bank’s decision to sell is completely up to bank ownership, directors, or shareholders. While we at WBA are disappointed to see this type of acquisition occurring, we do not question the Home Savings Bank’s motivations for doing so. However, we are hopeful this deal sparks conversation among all members of Congress as to why these deals are possible in the first place.

Growth-oriented credit unions have managed to become nearly indistinguishable from tax-paying banks. This is because they enjoy federal and state income tax exemptions, less stringent oversight, and do not need to adhere to community reinvestment obligations.

Wisconsin banks have opportunities to make acquisitions in these scenarios, and there were institutions that sought to purchase Home Savings Bank. But given the future tax savings credit unions can realize, they can offer purchase terms with which banks simply cannot compete. This is wrong!

This is the fifth credit union acquisition of an income tax-paying community bank in Wisconsin in the last eight years. There have also been numerous credit union purchases of bank branches and bank assets. Each one of these transactions has revenue implications for the State of Wisconsin and the country; bank assets accumulated by credit union acquisition cease to be taxed at the state and federal level. As of this year, credit union acquisitions of community banks nationwide have surpassed 100.

Dupaco’s deal here is another example of a troubling trend in the financial services industry. Rather than return more money or reduce prices and cost to members, credit unions continue to use their tax advantages to expand their footprints and operate outside the scope of their original mission. It is our hope this acquisition will raise a red flag with Rep. Steil whose constituents subsidize credit unions’ competitive advantage that will ultimately leave them with fewer choices for financial products and services. It is time for these growth-oriented credit unions to be paying their fair share of taxes!

/by
,

Executive Letter: Advocate for Credit Union Fairness

Rose Oswald PoelsBy Rose Oswald Poels

Calling attention to the need to level the playing field for credit unions and banks has been a top advocacy priority for WBA, and we are joining with our national trade association partners in a renewed effort to shed light on this issue. As we continue to see credit unions acquiring community banks here in Wisconsin (four acquisitions in recent years) and as a national trend, we are concerned about the increased tax burden on remaining banks and all other taxpayers. In 2020, credit unions in Wisconsin used their tax exemption to avoid paying $46,503,865 in federal income taxes and held a grand total of $49,499,980,974 in tax-free assets. WBA is actively advocating for credit union fairness to state legislators in Madison and to our members of the U.S. Congress — currently, credit unions do not pay income taxes at the state or federal level.

As you know, WBA has launched a publicity campaign, which includes billboard displays promoting Wisconsin banks and their positive impact on our state’s economy and communities. We are also working closely with our national counterparts at the American Bankers Association (ABA) and the Independent Community Bankers of America (ICBA) on their awareness and advocacy initiatives.

ABA has updated the website for its Reform Credit Unions campaign, and ICBA has recently renewed its Wake Up and Take Action call for policymakers to examine the credit union tax exemption as the number of credit union-bank acquisitions passed 100. Both organizations’ sites include talking points, information about the impact by state, and a template to send a letter to your member(s) of Congress.

I encourage you to utilize the resources and tools linked above to reach out to your members of Congress and make your voice heard on credit union reform. Please don’t hesitate to reach out to me or our WBA Government Relations team (Lorenzo Cruz, VP – government relations and John Cronin, director – government relations) with any questions or if we can be of assistance.

/by
, , ,

WBA Releases 2019-2020 Advocacy Report

Every two years, WBA is proud to document the advocacy efforts accomplished on behalf of its membership. WBA’s priority through advocacy is to ensure there are no legislative, regulatory, or judicial obstacles barring you from serving your customers to the best of your abilities. This year’s advocacy report is now available and features several victories for the Wisconsin banking community. 

Capitol Days, an annual event that allows bankers to meet with state legislators or their staff, continued to develop a dialogue on the issues that are critical to bankers, their customers, and the economy. 2019 saw this event take place in the office of Wisconsin State Senate Majority Leader Scott Fitzgerald, while the 2020 edition took a virtual approach. 

Other conversational efforts included Rose Oswald Poels as a speaker for the introduction of a bill to combat elder financial abuse, as well as a meeting between WBA’s Agricultural Bankers Section, FSA Farm Loan Chief Tom Brandt, and Administrator for DATCP’s Division of Agricultural Development Krista Knigge about the issues that Wisconsin’s ag bankers continue to face. 

In addition, WBA files comment letters with government agencies soliciting input from the public on proposed regulatory updates and policy guidance. Recent letters have been submitted to the OCC, FDIC, Council on Environmental Equality, FRB, and HUD, to name a few.  

Many opportunities allow WBA to be a third-party advocate in judicial hearings. In the past two years, the WBA-supported omnibus bill was passed, an amicus brief was filed for the Koss Corporation v. Park Bank case that resulted in Park Bank’s favor, and both the CARES Act and the SAFE Banking Act and Corporate Transparency Act were passed by the House. 

WBA has also helped to raise funds and save money for banks and their customers. A total of $222,000 was raised for Wisbankpac and the Alliance of Bankers Conduit, and nearly $250 million in taxes were saved by small businesses that could have been applied to the forgivable portion of PPP loans through Wisconsin Act 185.  

To read more on the 2019-2020 victories and the work that WBA does on behalf of its membership, download the advocacy report here. To find out how you can engage in advocacy efforts for your bank, contact msemmann@wisbank.com.

By, Alex Paniagua

/by
, ,

The Wall Street Journal Publishes WBA Letter Regarding Minority-Owned Banks

Rose Oswald Poels, President and CEO of the Wisconsin Bankers Association, recently wrote a letter to The Wall Street Journal which they published in an article on Friday, Nov. 13. Below is the original letter. 

“The Battle to Keep America’s Black Banks Alive” was right when it said “In many ways, the struggles of "Black-owned banks and small, community lenders are one and the same.” The high cost of regulations as well as keeping up with the technology demands of a public that expects safe, secure, and instantaneous online banking at their fingertips are just a few of the factors driving these challenges. Like other minority-owned banks, Black-owned banks are very mission-driven and to help them succeed in their mission, they need the support of others willing to help champion this effort.  

Real progress begins with Congress and state legislatures promoting policies that recognize and support all minority-owned banks. This could include policies that allow for greater regulatory flexibility given the type of lending that occurs, and tax credits to help offset necessary investments in technology to improve compliant internal operations as well as allow them to compete with highly valued customer-facing products.  

A recent study done by the Wisconsin Bankers Foundation and Dr. Russell Kashian of UW-Whitewater's Fiscal & Economic Research Center, supports a point made in the article about competing with the global or larger banks. The study found overall that race is a factor in a consumers’ choice of type of institution. “Our results found, interestingly, that the white students were statistically more likely to use a community bank, and Black students were more likely to use national banks, and Latinx students were more likely to use regional banks,” Kashian said. A possible explanation, he said, is that national banks are more likely to be in urban areas, whereas community banks tend to focus on a smaller, usually more suburban or rural, geographic footprint. 

State and national banking associations are also champions of minority-owned banks and leveraging their resources will also further the success of Black-owned banks. In addition to the good work done by focused associations like the National Bankers Association and Minbanc Foundation, other banking associations offer products and services that can help Black-owned banks succeed. In addition to the advocacy support banking associations provide, they also offer high-quality educational programs to improve the professional development of bank staff, and other products designed to improve the business operations of banks. Many times, these are offered for members at discounted prices without sacrificing value.  

Finally, all of us in and around the banking industry can do more to economically empower disenfranchised citizens, which will ultimately improve the financial situation of customers of all banks, notably including Black-owned banks. Financial literacy is critical to provide individuals with the right knowledge and tools to develop and sustain a solid financial foundation. Elected officials along with the private sector can provide Black-owned banks with financial support and the tools necessary to allow them to provide meaningful financial education to their customers and local communities.  

A diverse banking sector is critical to meet the unique needs of our diverse country. We should all continue to do our part to help Black-owned banks, and all banks succeed.

On a similar note, WBA is hosting “A Conversation on Racial Equity.” Sponsored by the Federal Home Loan Bank of Chicago, this Dec. 9 program is intended to provide bankers with unique perspectives on racial equity to help us all learn how we can all improve and move forward on a path toward positive change.

 

By, Alex Paniagua

/by
Wisconsin Bankers Association logo

questions@wisbank.com

608-441-1200

4721 S Biltmore Ln.
Madison, WI 53718

Get our Newsletter!
Subscribe