CBAI attended the OCC’s Central District outreach meeting for trade associations on October 17, 2018. David Schroeder, CBAI’s senior vice president federal government relations, helped inform the OCC about community bank concerns and opportunities. Representing the OCC was Tony Bland (Senior Deputy Comptroller, Midsize and Community Bank Supervision), Blake Paulson (Deputy Comptroller, Central District) Ralph DeLeon (Director Banking Relations), and Ben Lemanski (Associate Deputy Comptroller, Central District).
The day-long outreach meeting began with a Central District Overview which included the District profile and performance, common examination findings, current and emerging risks, district priorities and hot topics. A regulatory relief (S. 2155 implementation) update was provided by the OCC’s Assistant Director of Legislative and Regulatory Affairs (via teleconference from D.C.), and a review of the OCC’s innovation initiative (fintech) was provided by their Innovations Officer (via teleconference from Washington, D.C.).
CBAI used the open discussion period to question the OCC about the implementation of CECL and how we are hearing continued calls from some about the need for community banks to purchase expensive modeling software to comply with the new requirements. The OCC was adamant about not requiring this purchase if a bank can develop an appropriate method for CECL compliance without using expensive software.
Other important issues raised during the open discussion period included the upcoming modernization of the CRA, payments system improvements, and the harm caused by the FDIC’s deposit rate caps. CBAI is actively engaged in each of these regulatory initiatives and encourages continued community banker involvement through member communications.