WASHINGTON—The Independent Community Bankers of America (ICBA) has released its annual list legislative and regulatory priorities and, not surprisingly, the credit union tax exemption is near the top.
ICBA said its top priorities include:
Tiered Regulation For Community Banks: “Promoting regulatory relief to allow community banks to support the financial needs of their customers, serve their communities, and contribute to their local economies.”
Tax-Exempt Credit Unions: “Urging Congress to address the abuses of the credit union industry’s federal tax subsidy and investigate the National Credit Union Administration’s failure to properly regulate and oversee the industry.”
Bank Secrecy Act & Enforcement: “Supporting ongoing efforts promoting a more efficient Bank Secrecy Act regime and the collection of beneficial ownership information when entities are formed.”
Consumer Financial Protection Bureau: “Supporting legislation to grant the CFPB additional statutory authority to exempt or tier regulatory requirements for community banks, exempt banks with $50 billion or less in assets from CFPB examination and enforcement, and replace single-director governance with a five-member commission.”
Supervisory Environment: “Urging examiners to be flexible in their review of Paycheck Protection Program loans and bank capital levels given the urgent circumstances of the COVID-19 environment.”
Small Business Data Collection: “Supporting a community bank exemption from Dodd-Frank Act Section 1071, which requires the CFPB to implement data collection and reporting requirements for small business lending.”
Tax Policy: “Supporting tax laws that promote robust economic activity, a vibrant community banking sector, and saving and investment.”
Industrial Loan Companies & Fintech Bank Charters: “Urging Congress to close the industrial loan company loophole and the OCC to seek explicit congressional authority before issuing special-purpose national bank charters for fintech companies.”
Data Security & Fraud: “Supporting a national data security standard and ensuring all payments system participants, including merchants, are subject to Gramm-Leach-Bliley Act-like data security standards.”
Cybersecurity and Information Sharing: “Ensuring federal cybersecurity policies recognize existing community bank mandates, supporting voluntary information sharing and industry initiatives such as .BANK and Sheltered Harbor, and expanding prudential regulators’ supervision to include core processors and credit bureaus.”
Faster Payments: “Encouraging community bank adoption of faster payments and urging the Federal Reserve and The Clearing House to achieve interoperability in their real-time payments options.”
Farm Credit System: “Opposing the Farm Credit System’s abuse of its tax-advantaged status and supporting reforms requiring the FCS to adhere to its mission of serving bona fide farmers and ranchers.”
Postal or State-Owned Public Banks: “Opposing the formation of new public banks or other types of public retail financial service providers, whether they are owned by states, municipalities, the U.S. Postal Service, or any other federal or quasi-federal instrumentality.”
Cannabis Banking: “Advocating federal legislation establishing a safe harbor from federal sanctions for banks that serve cannabis-related businesses in states where cannabis is legal under state law.”
Housing Finance Reform: “Supporting housing finance reform that preserves market liquidity and stability while ending the destructive sweep of Fannie Mae and Freddie Mac earnings.”
De Novo Community Bank Formation: “Supporting a flexible and tailored supervisory policy on de novo community banking applicants to limit regulatory roadblocks to bank formation.”