Chairman’s Letter
“I read the news today, oh boy!” This opening line from the Beatles song “A Day In the Life” pretty well sums up the beginning of each day for me in present time. Media stories expressing a gloomy outlook for the economy and banking in particular greet us every morning. This continual stream of dreary commentary often containing inaccuracies is sure to weigh heavy on public perception. Strong confidence in the banking industry is paramount to our overall success.
In addition to the volume of adverse publicity centered on the economy, our industry is being inundated by regulatory and legislative initiatives that could have unfavorable impact on bank performance. During the American Bankers Association’s summer meeting in Orlando, Florida last month Ed Yingling, the AmBA president and CEO, stated, “we are in an unprecedented era of a significant volume of critical issues.” Can any banker disagree with that assessment of the current situation? Among these “critical issues” are payments systems reforms related to interchange fees and overdraft protection programs, turf battles with credit unions and Farm Credit Services moving to broaden their government advantages, regulatory restructuring initiatives, mortgage finance reform, assurance of an adequately funded deposit insurance reserve, Bank Secrecy Act reform, and liquidity and funding issues coupled with the regulatory treatment of sources of deposits. It is enough to make one’s head spin! I am reminded of watching the “old” westerns on television when the “good guys” (that would be us) have to circle their wagons to defend against an all out attack by an enemy on the warpath. Flaming arrows, sharpened spears, rifle shots coming at us from every conceivable angle. I reckon it is time to circle the wagons!
Circling the wagons requires us to better educate all constituencies about the overall soundness of our industry in the midst of a heaving economy, turbulent financial markets, and woes in the housing sector. We do not want to see a wave of negative publicity turn into a tsunami of undue regulation. Your Association is addressing this matter on several fronts. The recently concluded annual Bank Management Seminar in Branson, Missouri was filled with excellent speakers and banker interaction better preparing all participants to meet industry issues with a positive approach. Our Association’s president and CEO Ken Hammonds has distributed an editorial to newspapers across our state speaking to the safety and soundness of Arkansas banks (you can read Ken’s message elsewhere in this issue of Arkansas Banker). This message is not to be interpreted that banks are without challenges. In the current economic climate it is expected that several banks will be issued regulatory orders requiring corrective actions. Our position offers evidence that the majority of our banks can meet the prevailing challenges, comply with regulatory requirements, and continue regular business activities.
It is critical that well-informed bankers participate alongside our legislators and regulators in the development and implementation of initiatives and reforms. Our annual visit to Washington, DC is scheduled for September 16-18. I encourage you to travel with us to discuss the merits or shortcomings of the many and varied ideas being considered in the context of banking legislation and regulation by members of Congress and regulatory authorities at this time.
I also remind you that contributions to our Association’s Political Action Committees can assist in our efforts to support elected officials and political candidates who share our philosophy and concerns. If you have not yet responded to the request for contribution to our PAC fund, I urge you to give prompt attention to this appeal. Such contributions of your time and financial resources assist in developing the relationships necessary for our voices to be effective when considering matters of consequence.
Attempting to stay focused on the diatribe of our state and national legislators, the concerns of our regulators, the undulations in the economy, the impact of the news of the day being spun by the media, and meeting the needs of our customers is a bit dizzying. That’s the way it is in “a day in the life” of a community banker. “Woke up, got out of bed, dragged a comb across my head…………….”
Around the state and across the Miles………………..there is work to be done, let’s go have some fun!
No comments:
Post a Comment