Pub. 4 2016 Issue 1

www.uba.org 6 Help Us ‘Power Up’ By Rob Nichols, President and CEO, American Bankers Association WASHINGTON UPDATE E-mail Rob Nichols at nichols@aba.com . I think most bankers would agree that the policy environment today is not a heck of a lot better for our industry than it was in 2008. Politicians continue to take cheap shots at banks, even going so far as to force the industry to pay for the highway spending bill enacted last December. This is an untenable position. Banks are far too important to hometowns across America to unfairly remain a political punching bag. It’s not just that the contin- ued sweeping, anti-bank rhetoric damages our reputation, which could deter custom- ers from banking. That is a problem, to be sure -- and policymakers should see how counterproductive it is to send consumers away from the safety of regulated institu- tions. But the more damaging result is the pol- icies -- particularly in the form of overly prescriptive regulations — that follow the rhetoric. Policies that do not recognize how banks interact with their customers, or how bank lending propels the growth and prosperity of their communities, do more far more harm than good. They deny credit to creditworthy borrowers, make homeownership prohibitive and perversely promote consolidation among smaller banks that are sometimes the only finan- cial services provider in town. This needs to change. That’s why ABA spent the first few months of 2016 reviewing and revitalizing the advocacy tools and programs bankers use to amplify their voice in Washing- ton. We found we do some things well, but also that there were other things we should be doing better, differently, new or on a grander scale. We’ll be implementing changes on our end, including using new social and digital advocacy tools to better communicate, mobilize and coordinate our efforts. But we need bankers to make a shift as well. Specifically, we are asking bankers to do three things that we think will help rebuild the banking industry’s political clout. We are calling this initiative “Power Up,” and I am asking for your active participation. Three Steps to ‘Power Up’ 1. Engage in grassroots leadership. You are already community leaders, which makes you important to elected officials. We need to go the next level and become an invaluable resource to them. Host lawmakers in your community and in your bank. Introduce them to other community VIPs, including your business customers. Help them with their campaigns either by hosting a fundraiser or providing manpow- er. As you do so, your member of Congress will learn the valuable role your bank plays in the community, and how policy affects your customers -- their constituents. That is the best way to ensure they will consider your views when a banking issue comes up for a vote. If you have or are willing to build or deepen a relationship with your lawmaker, please let ABA know by filling out our Lawmaker Relationship Form on aba. com/PowerUp. 2. Join BankPac — or your state’s Fed- eral Pac. BankPac and connected state political action committees comprise a critical tool for advancing a pro-banking agenda in Washington, but we can only talk to bankers about it -- and how they can support it — if a senior executive at the bank provides prior approval. It is critical that we obtain this prior ap- proval as soon as possible. ABA is already contacting those banks that have provid- ed approval — particularly those whose leaders serve on ABA councils — about hosting in-bank campaigns for BankPac. A signed prior approval form will permit us to help banks implement a simple employ- ee deduction plan which, when multiplied by thousands of banks, can yield big results. The BankPac prior approval form is available on aba.com/PowerUp; please fill it out. 3. Donate to the Fund for Economic Growth. The Fund is the new name for the 501c4 that several ABA banker leaders started in 2012. It helps demonstrate the economic impact of U.S. banks and pro- growth policies by educating policymakers and the public, promoting legislation and bolstering political candidates. Unlike BankPac, the Fund can accept both personal and corporate contributions, which are unlimited. The more contribu- tions the Fund receives, the more we can do to improve the policy environment in Washington. More information and a donation form are available on aba.com/ PowerUp. All of these steps are aimed at dramatical- ly expanding bankers’ participation in the political process and thereby increasing our political strength. But it is equally important that we deploy our expanded re- sources more deliberately and aggressively. That means being more discerning in our financial support to lawmakers and more proactive in our use of media in political campaigns. Rest assured that the state associations will remain critical partners in making these kinds of funding decisions. I firmly believe that the three components of our Power Up initiative will set banking on the path to becoming a more formida- ble political force. We won’t get there over- night. In fact, I expect we will need a good two years to fully “power up.” But with your support and leadership, I’m confident we will build banking’s clout and create a more positive policy environment for your customers and communities. n