Pub. 5 2017 Issue 2

Issue 2. 2017 5 E-mail Rob Nichols at nichols@aba.com . A Do-Something Washington By Rob Nichols, President and CEO, American Bankers Association WASHINGTON UPDATE P artisanship in Washington in recent years has led some to believe that Congress doesn’t “do” collaboration anymore. One party’s gain is seen as the other’s loss, making deals hard to come by. But many bankers who came to Wash- ington in March for ABA’s Government Relations Summit and other meetings got a slightly different vibe from the policymakers they met with. Yes, some members of Congress predictably held firm against significant changes to the Dodd-Frank Act. Yet others, informed – and perhaps worn down – by bankers’ true stories of how over-the-top rules were harming their customers were positive about the possibility of finally doing something for community banks. There’s a similar realistic yet optimis- tic attitude behind an effort by the two leaders of the Senate Banking Commit- tee – Chairman Mike Crapo (R-Idaho) and Ranking Member Sherrod Brown (D-Ohio) – to identify legislative changes that could help spur economic growth. They won’t pursue changes they don’t believe in, of course, but both see an opportunity to find and pursue common ground. These encouraging signs are made all the more hopeful by administration of- ficials who have proactively reached out to community banks to learn what rules are acting as roadblocks to growth. In March, President Trump invited nine community bankers to the White House for a roundtable discussion of the indus- try’s regulatory challenges. Though the bankers represented institutions with different business models, operated in different parts of the country and were affiliated with different national trade associations (six were part of ABA’s delegation; three were with the Independent Community Bankers of America), there was remark- able alignment in our policy positions and priorities. The same can be said for the follow-up meeting that Treasury Secretary Steven Mnuchin held with 16 community bank- ers in April. That’s where the secretary made clear how serious the administra- tion was about helping banks perform their critical role in promoting economic growth. And it’s where we dug into the specifics of issues related to mortgage, agricultural and commercial lending, as well as Consumer Financial Protection Bureau rules that are ill-tailored for community banks. There again, ABA and ICBA members were side-by-side, advocating practical solutions. Such alignment is critical to success in Washington. I’ve said before that Wash- ington has enough challenges without trying to legislate issues on which an industry is divided. Policymakers up and down Pennsylvania Avenue are interest- ed in addressing our problems – so long as we can agree on the best solutions. And I am confident that the solutions we have proposed – as detailed in white papers ABA shared with Secretary Mnuchin following the meeting – are what’s right for America’s banks and the communities they serve. The white pa- pers (which can be found at aba.com/ex- ecutive-orders) articulate how regulation in areas like capital, liquidity, fair lend- ing and stress testing can be improved. They were informed by the deliberations in recent years of bankers who serve on our many councils and working groups and who represent banks of different business models and asset sizes. Solu- tions born of such diverse perspectives are always stronger by ensuring that they make sense for all banks. Given how intent this administration is about using banks to spur growth, and given the interest Congress has shown in providing some community bank regula- tory relief, having strong solutions with unified industry backing could just make something happen in Washington again. n