President Obama Signs CBAI Supported Law Requiring Community Bank Presence on the Fed Board

CBAI applauds President Obama for signing into law legislation that would require the White House to appoint someone with community banking experience to the Federal Reserve Board. This provision was included in the Terrorism Risk Insurance Act (“TRIA”) and would specifically require that at least one member of the Federal Reserve Board have experience as a community banker or community bank supervisor. TRIA was supported by a wide bi-partisan majority, passing the House by a vote of (416-5) and the Senate by (93-4). The entire Illinois Congressional delegation voted in favor of TRIA (with the exception of Congresswoman Duckworth who is on maternity leave).


Regulators to Hold Chicago EGRPRA Meeting

January 12, 2015

Federal banking regulators have announced that an Economic Growth and Regulatory Paperwork Reduction Act (“EGRPRA”) outreach meeting will be held in Chicago on October 19, 2015. CBAI encourages Illinois community banks to attend this outreach meeting and express their views on regulatory burden directly to the federal banking agencies. In addition, the agencies will hold an outreach meeting this summer focusing on rural banking issues.

CBAI urged the federal banking regulators to address outdated, unnecessary, and unduly burdensome regulation of community banks. In a September 2014 comment letter CBAI highlighted the need for tiered regulation and called on the regulators to encourage de novo bank formation, ease quarterly Call Report burden, and increase the Small Bank Holding Company Policy Statement threshold to $5 billion (and allow small savings and loan holding companies to be covered by the Policy Statement). Read Comment Letter. Read More from the Agencies.


CBAI Urges the FHFA to Withdraw Harmful Proposed Membership Rule

January 7, 2015

CBAI submitted a comment letter to the Federal Housing Finance Agency (“FHFA”) concerning its harmful proposed changes to Federal Home Loan Bank (“FHLB”) membership rules. These proposed changes will have a profound impact on the FHLB System, FHLBanks and FHLB Members, by imposing ongoing requirements that all FHLB Members would need to meet in order to maintain their membership.

The impact of the Proposed Rule include: increased regulatory burden on community banks and thrifts; difficulty in Member balance sheet management; the stability of the System and its continued reliability as a funding partner, particularly in times of economic stress; uncertainty about continuing Member access to liquidity; the future value of FHLBank membership; and the impacts on housing and community development throughout the System.

CBAI previously raised concerns about the FHFA’s 2010 Advanced Notice of Proposed Rulemaking (“ANPR”) on this subject and CBAI has again called on the FHFA to formally withdraw the harmful Proposed Rule. Read CBAI’s Comment Letter.


CBAI Applauds New Law Improving Community Bank Access to Capital

December 22, 2014

CBAI applauds the recent enactment of a 2014 CBAI Federal Policy Priority for tiered regulation by increasing the Federal Reserve’s Small Bank Holding Company Policy Statement asset exemption from $500 million to $1 billion and also allowing small savings and loan holding companies to be covered by the Policy Statement provisions. It is estimated that 600 more bank and savings and loan holding companies will benefit from this increased threshold and that the Policy Statement will now cover close to 90% of all bank HCs and 75% of all savings and loan HCs. The Federal Reserve must propose a revised Policy Statement for comment within six months of the enactment of this legislation.

The ICBA has published a document answering frequently asked questions about this legislation. Read ICBA FAQ Document.


CBAI Meets with New Illinois Congressmen Robert Dold (R-10th) and Mike Bost (R-12th)

December 15, 2014

Community Bankers Association of Illinois (CBAI) staff and leadership bankers, Todd Grayson (President of South Central Bank, N.A., Chicago and Chairman of CBAI) and David Pirsein (President of First National Bank in Pinckneyville and CBAI Southern Illinois Regional Vice Chairman) respectively, met with Illinois’ new Congressmen Robert Dold (R-10th) and Mike Bost (R-12th) to review CBAI's Federal Policy Priorities.

CBAI’s long history of exclusively representing the interests of Illinois community banks was highlighted during these meetings, including the associations cooperative relationship with the Independent Community Bankers of America (ICBA) and how this relationship has strengthened community banking's influence at the national level to the benefit of Illinois community banks.

The substantive issues discussed during the meetings included addressing the risks posed by too-big-to-fail banks and financial firms, the need for regulatory relief and tiered regulation for community banks, credit union taxation, the Farm Credit System’s expansionist agenda, and other issues contained in CBAI’s 2014 Federal Policy Priorities. Read CBAI’s 2014 Federal Policy Priorities.


Congressman-elect Robert Dold defeated Democrat Congressman Brad Schneider in the 10th Congressional District which includes Chicago’s northern suburbs. Dold is a small business owner and previously served in the United States House of Representatives from 2010-2012. During his previous term in Congress he was a member of the House Financial Services Committee and was a strong supporter of Illinois community banks. CBAI is pleased to announce that Bob Dold will be rejoining the House Financial Services Committee and looks forward to again working with him on this important Committee.

Congressman-elect Mike Bost defeated Democrat Congressman Bill Enyart in the 12th Congressional District which is located in southwestern Illinois. Mike’s background includes owning a small business and serving in the Illinois House from 1995-present. CBAI’s state Governmental Relations staff has enjoyed a good working relationship with Representative Bost. CBAI is also pleased to report that Bost has been named to the House Agriculture Committee.

CBAi sincerely appreciates Illinois’ newest Congressmen committing their time to meet with leadership bankers and staff to learn more about Illinois community banks and CBAI's federal policy priorities.

We look forward to meeting with every member of the Illinois Congressional delegation during CBAI’s 33rd Annual Call on Washington, April 28 – May 1, 2015. Please save the Date! Your participation in the legislative process is vital to making sure the voice of Illinois community banks is heard in Washington, D.C.