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CAPITAL ISSUES: The determination of capital ade- allow for small banks to provide additional deposit
quacy under Basel III is unnecessarily complex and insurance coverage to compete with the implicit gov- COMMUNITY BANK
cumbersome. Community banks should be exempt- ernment guaranty of deposits in the SIFIs. Further,
ed. They should have the ability to elect whether to community banks should have the option of paying a EXPERIENCE
be subject to this standard or a more appropriate and deposit insurance premium surcharge to provide full
simplified process. Further, recent accounting stan- coverage for transaction accounts, further mitigating CORRESPONDENT
dards regarding loan impairment (CECL), as well as the movement of funds to the perceived “Too Big to
others, are adding significant costs and burdens to Fail” banks. BANK EXPERTISE
community banks and other small businesses with
questionable benefits. OTHER ISSUES: Some of the other legislative and reg-
Reciprocal deposit arrangements should not be ulatory issues that community bankers in Texas are
considered brokered deposits. These arrangements facing include: Fixed Income Securities Sales
Subchapter S offers benefits to allow smaller banks •
to remain viable and compete with tax-advantaged
credit unions and farm credit system lenders. We Bond Accounting & Safekeeping
2018 INDEPENDENT BANKERS support raising the limit on shareholders from 100 •
ASSOCIATION OF TEXAS to 500, allowing Sub S banks to issue preferred stock,
making dividends on those shares tax deductible and Loan Hedging (ARC Program)
allowing those dividends to be treated as ordinary •
income for tax purposes. Further, we support an LLC Commercial & Industrial Credits
structure for banks.
Data security breaches continue to be a significant •
GRAND HYATT WASHINGTON International Services
1000 H ST. NW, WASHINGTON, D.C. and costly problem for all banks. We are supportive
HHHHH of requiring the same Gramm-Leach-Bliley stan- •
APRIL 10 dards banks must adhere to for all entities that han- Clearing/Cash Management
dle sensitive customer data.
5:30–7 p.m. Welcome reception
The ongoing proliferation of Patent Assertion •
APRIL 11 Entities, or patent trolls, continues to be a source of Asset/Liability Management Reporting
7:30–9 a.m. Group breakfast and briefing frustration and expense for businesses. IBAT strong-
10 a.m.–2 p.m. Capitol Hill visits ly supports the very simple fix of exempting end us-
2:30–5:30 p.m. Group meeting with key legislators ers—those who simply purchase software or a prod-
6:30 p.m. Group dinner at McCormick & Schmick’s uct from a third party—from any liability for alleged 512.681.4452 800.848.8573
9 p.m.–12 a.m. Monument tour (optional) patent infringement.
We continue to oppose efforts by some in the
APRIL 12
credit union industry to expand field of membership
Capitol Hill visits or departure at your leisure
and business lending authority, whether by legislation
ACCOMMODATIONS or regulatory fiat. Further, regulatory restrictions on 111 Congress Avenue, Suite 400
IBAT’s room block at the Grand Hyatt Washington the conversion of a credit union to a bank charter are Austin, Texas 78701
expired March 1. For availability, please contact the significant and inappropriate.
hotel directly at 202/582-1234. Lenders under the Farm Credit System umbrella
are also competing directly with our banks in a num-
SPONSORS (as of February 20) www.csbcorrespondent.com
ber of markets and are straying from their purpose
Annual Diamond Sponsor: The Baker Group as well with loans to large entities and dubious ties to Visit Us
Annual Platinum Sponsor: Fitech Payments either agriculture or rural development. Tax-advan-
Annual Gold Sponsors: taged GSEs should not be competing with the private
Bank Compensation Consulting and Diebold Nixdorf sector outside of their stated mission.
Bronze Sponsors: Advantage Health Plans Trust, The Durbin Amendment, setting government price
Deluxe Strategic Sourcing, Equias Alliance, controls on debit card interchange, has resulted in
Federal Home Loan Bank of Dallas, fewer low-cost account options and no meaningful
Fenimore, Kay, Harrison & Ford LLP, savings for consumers. Durbin should be repealed.
PULSE A Discover Company, The Volcker Rule has limited the ability of commu-
and Strategic Resource Management nity banks to manage interest rate and commodity
risks through hedging strategies. Community banks
should be carved out from these restrictions. H

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