Monday, November 30, 2020

Week of Dec. 25

In This Issue…
Thank you to our members!
Voters support taxing large credit unions
Oklahoma delegation asked to support H.R. 4545
OBA education corner …

Thank you to our members!

With the year winding down and Christmas and New Year’s upon us, the staff of the Oklahoma Bankers Association wanted to send a special “thank you” in video form to all our members.

Thank you for letting us be a part of your businesses and lives and we wish you the merriest of Christmases and the happiest of New Years’.

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Voters support taxing large credit unions

The following information shows the result of a recent poll conducted by Morning Consult, The poll was conducted at the request of the American Bankers Association.  Here are the results:

  1. Voters are largely not aware of the fact that credit unions pay no federal income tax.
  2. It is not appropriate for a tax-exempt industry to spend millions of dollars on sports events and sponsorships since they are exempt from federal income taxes that have to be made up by the rest of us.
  3. Majorities across party lines agree with this finding.
  4. By a 31-percent margin, voters say they are likely to support a tax reform proposal that eliminates the tax exemption for credit unions if it helps limit any increase in the deficit.

Even with the reduction of the corporate income tax rate to 21 percent, it still looks like this:

Banks — 21 percent        Large Bank-Like Credit Unions — zero percent!

Congress is fearful if it votes to impose a tax on bank-like large credit unions – which amounts to a $27 million pay-for – they will face a very difficult reelection bid.  Our question to that is:

So what?

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Oklahoma delegation asked to support H.R. 4545

The following letter was recently sent to Rep. Markwayne Mullin and the other members of the Oklahoma delegation in the U.S. House of Representatives:

The Honorable Markwayne Mullin

United States Congressman

1113 Longworth House Office Building

Washington, D.C. 20515

RE:  H.R. 4545

Dear Markwayne:

On behalf of the bankers across Oklahoma – both large and small – we ask for your support of H.R. 4545, the Financial Institution’s Examination Fairness and Reform Act.  As you know, the Oklahoma Bankers Association has supported this concept since it was officially introduced in the 113th Congress.

I know you understand how important the concept of due process is to all of us, and that’s essentially what this bill provides for banks and credit unions. We understand the importance of regulatory examinations as part of a safe and sound banking system. We also understand banks and credit unions must be compliant with the rules and regulations intended to ensure they operate properly.

There are times when an examination results in honest and reasonable disagreement about whether a proposed regulatory conclusion or finding is correct. But today, Oklahoma banks simply do not have access to due process in such a situation: a review by an independent third party who will review a banker’s complaint in an impartial manner.

H.R. 4545 creates such a process.  It gives banks and credit unions the opportunity to pursue such a review by an Independent Examination Review Director. The process created by this bill is necessary, it’s reasonable and it’s fundamental to all Oklahoma banks and credit unions, especially in the current banking environment.

On behalf of the $115 billion banking industry in Oklahoma and its 24,000 employees, we ask that you support and co-sponsor H.R. 4545.

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OBA education corner …

We’re between holidays right now with New Year’s looming next week. Soon afterward, however, bankers should be preparing for their next educational experience through the OBA! Take note of the following:

  • Best-Ever Compliance Checklists for Consumer Loans, Jan. 3, webinar — The colorful and easy-to-use checklists are designed to chronologically lead lenders and processors through the various compliance requirements, and financial institutions that properly use these checklists will virtually eliminate compliance errors.
  • Sexual Harassment – Establishing a Respectful Workplace, Jan. 4, webinar — In many organizations sexual harassment seems all too common. Yet in others it rarely arises and is quickly and effectively addressed. What is the difference?
  • Digital Marketing: Deep Dive, Jan. 9, webinar — This presentation will be a deep dive into digital marketing geared towards people who have responsibility over marketing initiatives.
  • Implementing Beneficial Owners on Legal Entities, Jan. 9, webinar — This program is designed to focus on business accounts and the opening procedures, changing ownership, implementing this process and all the questions it brings.
  • Incident Response: Plan to Fail Well, Jan. 10, webinar — Explore the importance of incorporating forensic analysis procedures into your standard procedures to better address emerging threats and decrease liability.
  • Cash Management: Generate More Fee Income, Jan. 10, webinar — During this two hour webinar, you will gain a more in-depth knowledge of cash management (aka treasury management) products and services.
  • Scrubbing and Submitting 2017 HMDA Data, Jan. 11, webinar — While the world of the Home Mortgage Disclosure Act (HMDA) is about to undergo major changes, creditors cannot afford to lose focus on the basic requirements of Regulation C that remain in effect until Jan. 1, 2018.
  • Opening Accounts for Nonresident Aliens, Jan. 11, webinar — Opening these accounts and covering the required documentation and identification bases makes dealing with these accounts more challenging than ever.
  • Credit Analysis Basics, Jan. 31-Tulsa; Feb. 1-Oklahoma City — Review the basics of loan structure,
    loan support, documentation and loan compliance.

Finally, make sure to save the date for the 2018 Community Bankers Leadership & Senior Management Conference, set this year for April 8-10 in Las Vegas. If you work for a community bank or if you’re looking for ways to improve your bank’s performance, then this event is for you! Click here for more information.