Independent Community Bankers of America

Last updated

The Independent Community Bankers of America (ICBA) is the primary trade group for small U.S. banks. [1] It represents approximately 5,000 small and mid-sized financial institutions that are commonly known as "community banks." The ICBA hosts conventions, [2] publishes the monthly magazine ICBA Independent Banker [3] and lobbies the United States Congress on issues relating to the banking industry. [4]

Contents

The organization is headquartered in Washington, D.C., and maintains statewide chapters across the country. It was founded in 1930 and owns six subsidiaries: ICBA Bancard, ICBA Securities, ICBA Financial Services, ICBA Mortgage, ICBA Insurance Services and ICBA Reinsurance [5]

Advocacy

During financial reform attempts in the US, the ICBA has lobbied for:

Legislation

On November 8, 2013, the ICBA published a letter in "strong support" of the bill To enhance the ability of community financial institutions to foster economic growth and serve their communities, boost small businesses, increase individual savings (H.R. 3329; 113th Congress). [8] The bill would direct the Federal Reserve to revise certain regulations related to small bank holding companies (BHCs). [9] [10] Current regulations allow BHCs with assets of less than $500 million that satisfy other tests to incur higher amounts of debt than larger institutions in order to acquire other banks. [9] H.R. 3329 would apply the less-stringent standard to more BHCs by raising the asset limit to $1 billion, and the bill also would allow savings and loan holding companies to qualify. [9] The ICBA argued that "increasing the eligibility threshold to $1 billion to account for inflation, industry consolidation, and asset growth will help an additional 515 bank and savings and loan holding companies raise capital for additional consumer and small business lending, leading to job creation and community development." [8]

Related Research Articles

<span class="mw-page-title-main">Gramm–Leach–Bliley Act</span> Act of the 106th United States Congress (1999–2001)

The Gramm–Leach–Bliley Act (GLBA), also known as the Financial Services Modernization Act of 1999, is an act of the 106th United States Congress (1999–2001). It repealed part of the Glass–Steagall Act of 1933, removing barriers in the market among banking companies, securities companies, and insurance companies that prohibited any one institution from acting as any combination of an investment bank, a commercial bank, and an insurance company. With the passage of the Gramm–Leach–Bliley Act, commercial banks, investment banks, securities firms, and insurance companies were allowed to consolidate. Furthermore, it failed to give to the SEC or any other financial regulatory agency the authority to regulate large investment bank holding companies. The legislation was signed into law by President Bill Clinton.

<span class="mw-page-title-main">Federal Deposit Insurance Corporation</span> US government agency providing deposit insurance

The Federal Deposit Insurance Corporation (FDIC) is a United States government corporation supplying deposit insurance to depositors in American commercial banks and savings banks. The FDIC was created by the Banking Act of 1933, enacted during the Great Depression to restore trust in the American banking system. More than one-third of banks failed in the years before the FDIC's creation, and bank runs were common. The insurance limit was initially US$2,500 per ownership category, and this has been increased several times over the years. Since the enactment of the Dodd–Frank Wall Street Reform and Consumer Protection Act in 2010, the FDIC insures deposits in member banks up to $250,000 per ownership category. FDIC insurance is backed by the full faith and credit of the government of the United States, and according to the FDIC, "since its start in 1933 no depositor has ever lost a penny of FDIC-insured funds".

The Glass–Steagall legislation describes four provisions of the United States Banking Act of 1933 separating commercial and investment banking. The article 1933 Banking Act describes the entire law, including the legislative history of the provisions covered.

<span class="mw-page-title-main">Community Reinvestment Act</span> US federal law

The Community Reinvestment Act is a United States federal law designed to encourage commercial banks and savings associations to help meet the needs of borrowers in all segments of their communities, including low- and moderate-income neighborhoods. Congress passed the Act in 1977 to reduce discriminatory credit practices against low-income neighborhoods, a practice known as redlining.

<span class="mw-page-title-main">Office of Thrift Supervision</span>

The Office of Thrift Supervision (OTS) was a United States federal agency under the Department of the Treasury that chartered, supervised, and regulated all federally chartered and state-chartered savings banks and savings and loans associations. It was created in 1989 as a renamed version of the Federal Home Loan Bank Board, another federal agency. Like other U.S. federal bank regulators, it was paid by the banks it regulated. The OTS was initially seen as an aggressive regulator, but was later lax. Declining revenues and staff led the OTS to market itself to companies as a lax regulator in order to get revenue.

The American Bankers Association (ABA) is an American trade association for the U.S. banking industry, founded in 1875. They lobby for banks of all sizes and bank charters, including community banks, regional and money center banks, Federal savings associations, mutual savings banks, and trust companies. The average member bank has approximately $250 million in assets. ABA is the largest financial trade group in the United States.

<span class="mw-page-title-main">ShoreBank</span> Community development bank (1973–2010)

ShoreBank was a community development bank founded and headquartered in Chicago. At the time of its closing it was the oldest and largest such institution, and in 2008 had $2.6 billion in assets. It was owned by ShoreBank Corporation, a regulated bank holding company.

<span class="mw-page-title-main">Too big to fail</span> Concept in economics

"Too big to fail" (TBTF) is a theory in banking and finance that asserts that certain corporations, particularly financial institutions, are so large and so interconnected that their failure would be disastrous to the greater economic system, and therefore should be supported by government when they face potential failure. The colloquial term "too big to fail" was popularized by U.S. Congressman Stewart McKinney in a 1984 Congressional hearing, discussing the Federal Deposit Insurance Corporation's intervention with Continental Illinois. The term had previously been used occasionally in the press, and similar thinking had motivated earlier bank bailouts.

<span class="mw-page-title-main">Blaine Luetkemeyer</span> American politician (born 1952)

William Blaine Luetkemeyer is an American politician serving as the U.S. representative for Missouri's 3rd congressional district since 2013, having represented Missouri's 9th congressional district from 2009 to 2013. A member of the Republican Party, Luetkemeyer formerly served as a member of the Missouri House of Representatives. On January 4, 2024, he announced he would not run for reelection in 2024.

The New York State Banking Department was created by the New York Legislature on April 15, 1851, with a chief officer to be known as the Superintendent. The New York State Banking Department was the oldest bank regulatory agency in the United States.

<span class="mw-page-title-main">Dodd–Frank Wall Street Reform and Consumer Protection Act</span> Regulatory act implemented by the Obama administration after the 2007–2008 financial crisis

The Dodd–Frank Wall Street Reform and Consumer Protection Act, commonly referred to as Dodd–Frank, is a United States federal law that was enacted on July 21, 2010. The law overhauled financial regulation in the aftermath of the Great Recession, and it made changes affecting all federal financial regulatory agencies and almost every part of the nation's financial services industry.

A community bank is a depository institution that is typically locally owned and operated. Community banks tend to focus on the needs of the businesses and families where the bank holds branches and offices. Lending decisions are made by people who understand the local needs of families, businesses, and farmers. Employees often reside within the communities they serve.

Basel III is the third Basel Accord, a framework that sets international standards for bank capital adequacy, stress testing, and liquidity requirements. Augmenting and superseding parts of the Basel II standards, it was developed in response to the deficiencies in financial regulation revealed by the financial crisis of 2007–08. It is intended to strengthen bank capital requirements by increasing minimum capital requirements, holdings of high quality liquid assets, and decreasing bank leverage.

<span class="mw-page-title-main">Financial Stability Oversight Council</span> United States systemic risk agency

The Financial Stability Oversight Council (FSOC) is a United States federal government organization, established by Title I of the Dodd–Frank Wall Street Reform and Consumer Protection Act, which was signed into law by President Barack Obama on July 21, 2010. The Office of Financial Research is intended to provide support to the council.

A systemically important financial institution (SIFI) is a bank, insurance company, or other financial institution whose failure might trigger a financial crisis. They are colloquially referred to as "too big to fail".

The Glass–Steagall Act was a part of the 1933 Banking Act. It placed restrictions on activities that commercial banks and investment banks could do. It effectively separated those activities, so the two types of business could not mix, in order to protect consumer's money from speculative use. The Banking Act of 1935 clarified and otherwise amended Glass–Steagall.

There have been several efforts or appeals in the United States to reinstate repealed sections of the Glass–Steagall Act following the 2007–2008 financial crisis, as well as elsewhere to adopt similar financial reforms.

<span class="mw-page-title-main">Swaps Regulatory Improvement Act</span>

The Swaps Regulatory Improvement Act is a bill that would amend the Dodd–Frank Wall Street Reform and Consumer Protection Act. The Swaps Regulatory Improvement Act would improve the ability of banks to use swaps as a tool for hedging risk. If Dodd-Frank is not amended, non-bank institutions will have to do many of the swap trades instead. H.R. 992 passed the House during the 113th United States Congress.

<span class="mw-page-title-main">H.R. 3329 (113th Congress)</span>

The H.R. 3329 is a bill that would direct the Federal Reserve to revise certain regulations related to small bank holding companies (BHCs). Current regulations allow BHCs with assets of less than $500 million that satisfy other tests to incur higher amounts of debt than larger institutions in order to acquire other banks. H.R. 3329 would apply the less-stringent standard to more BHCs by raising the asset limit to $1 billion, and the bill would also allow savings and loan holding companies to qualify.

Keith A. Noreika is an American lawyer who specializes in the regulation of financial institutions. He served as Acting Comptroller of the Currency from May 5, 2017, to November 27, 2017, following the 30th Comptroller of the Currency, Thomas J. Curry, and preceding the 31st Comptroller of the Currency, Joseph Otting. Noreika rejoined the law firm of Simpson Thacher on January 8, 2018. He joined Patomak Global Partners as Executive Vice President and Chairman of its Banking Supervision and Regulation Group on July 5, 2022.

References

  1. Joe Rauch. UPDATE 1-Senator blasts Visa, MasterCard on antitrust fears Reuters. May 27, 2010. Accessed May 29, 2010.
  2. Sewell Chan. Now On Deck: Financial Regulatory Reform The New York Times. March 20, 2010. Accessed May 29, 2010.
  3. "Banking magazine ranks Alpine Bank in top 20," Steamboat Pilot News, 29 June, 2008
  4. "Small banks spent $820K lobbying in 1Q," Associated Press/Forbes, 17 June, 2008 [ dead link ]
  5. "ICBA". Bloomberg News . Retrieved June 16, 2019.
  6. Victoria McGrane. Credit unions, banks join forces for now Politico. July 10, 2008. Accessed May 29, 2010.
  7. Daniel Wagner, Stevenson Jacobs. New financial rules might not prevent next crisis Associated Press. May 23, 2010. Accessed May 29, 2010.
  8. 1 2 Fine, Camden R. (8 November 2013). "ICBA Letter of Support for H.R. 3329" (PDF). Independent Community Bankers of America. Archived from the original (PDF) on 6 May 2014. Retrieved 6 May 2014.
  9. 1 2 3 "CBO - H.R. 3329". Congressional Budget Office. 21 February 2014. Retrieved 4 May 2014.
  10. Cristina Marcos; Ramsey Cox (6 May 2014). "Tuesday: House reforms Dodd-Frank, Senate debates energy bill". The Hill. Retrieved 6 May 2014.