Pub. 1 2013 Issue 2

www.uba.org 10 B anking issues can be complicated, but the business of banking – taking in deposits and making loans – is ba- sic and essential. It’s the fuel that powers our nation’s economic growth engine. We want to make sure that policymakers understand this vital relationship. As part of our advocacy efforts, we’re em- barking on a course to educate members of Congress and others about banking and the critical role [state] banks play in the health and well-being of the local and national economy. We’ve learned from past experience that a lack of understanding about banking – the hows and whys of what you do – poses a threat to good policy. It makes it difficult to approach a complex banking issue when policymakers lack a solid grounding about our industry. We’re working to change this. In Janu- ary, we sent every lawmaker in the U.S. House and in the Senate a copy of “The Business of Banking: What Every Policy Maker Needs to Know.” This 72-page guide, which you can download at aba. com/businessofbanking, explains how banks convert customer deposits and other funds into loans that help busi- nesses and communities grow. “The Business of Banking” provides a fact-based examination of the industry as well as the competitive landscape of financial services, including nonbanks and credit unions. One interesting fact: Of the nation’s 6,900 banks, 66 percent have been in business for 50-plus years and 38 percent have been in business for 100 years or more. That’s making a long-term investment in the community and our nation. While we’re using “The Business of Banking” in our efforts to educate law- makers at the national level, you can put it to work in [state] when you talk with Financial Education for Lawmakers By Frank Keating, President and CEO, American Bankers Association washington update state and local leaders. You can also use it to educate employees. The topics covered include the basics of banking, deposits, loans, jobs and job creation, economic growth and more. I hope you find it useful. We also recently published and posted online a guide for lawmakers on hot- button issues. Our guide, “2013 Key Banking Issues for Congress: Why They Matter to You and Your Constituents,” is designed to help educate Congress on our top policy issues. The guide provides background in- formation on the credit union tax exemption, Basel III, municipal advi- sor registration requirements, and bank examination legislation, among other issues. For each topic, we explain how the issues affect lawmakers’ constituents and what Congress can do to help. You can read or download the guide at aba. com/keyissues. The bankers and state association execu- tives participating in the recent ABA Freshman Fly-In hand-delivered copies of the guide to their new senators, represen- tatives and staffers during their Capitol Hill visits. The purpose of these visits: To educate the new lawmakers and their staffs on, among other things, the overall need for regulatory relief; bank exami- nation reform; eliminating the credit union tax exemption; the importance of a strong banking system in a healthy economy; and credit unions’ attempts to expand their business-lending authority. Educating and advocating are the first steps in bringing about change. If you want to see a shift in how our industry is regulated, I invite you to join hundreds of bankers at the ABA Government Relations Summit, April 15-17 in Washington. Help us tell poli- cymakers your story so they can make informed decisions. You can register at aba.com/summit. n E-mail Frank Keating at keating@aba.com