IBA E-News 11-16-18
STATE GOVERNMENT RELATIONS
Senate Announces Leadership Changes
Last Friday, the Indiana Senate Republican Caucus announced the selection of Sen. Rodric Bray (R-Martinsville) as the next president pro tem of the Indiana Senate. Sen. Bray appointed Sen. Mark Messmer (R-Jasper) to serve as majority floor leader and Sen. James Merritt (R-Indianapolis) to serve as majority caucus chair. In addition, Bray has announced the Senate Standing Committee chairmanships for the 2019-20 Indiana General Assembly.
2019-20 Senate Committee Chairmanships – asterisks denote new chairs:
- Agriculture – Sen. Jean Leising (R-Oldenburg)
- Appropriations – Sen. Ryan Mishler (R-Bremen)
- Commerce and Technology – Sen. Chip Perfect (R-Lawrenceburg)*
- Corrections and Criminal Law – Sen. Michael Young (R-Indianapolis)
- Education and Career Development – Sen. Jeff Raatz (R-Centerville)*
- Elections – Sen. Greg Walker (R-Columbus)
- Environmental Affairs – Sen. Mark Messmer (R-Jasper)*
- Ethics – Sen. Liz Brown (R-Fort Wayne)
- Family and Children Services – Sen. Ronald Grooms (R-Jeffersonville)
- Health and Provider Services – Sen. Ed Charbonneau (R-Valparaiso)
- Homeland Security and Transportation – Sen. Michael Crider (R-Greenfield)
- Insurance and Financial Institutions – Sen. Eric Bassler (R-Washington)*
- Joint Rules – Sen. Mark Messmer (R-Jasper)*
- Judiciary – Sen. Randall Head (R-Logansport)*
- Local Government – Sen. James Buck (R-Kokomo)
- Natural Resources – Sen. Susan Glick (R-LaGrange)
- Pensions and Labor – Sen. Philip Boots (R-Crawfordsville)
- Public Policy – Sen. Ron Alting (R-Lafayette)
- Rules and Legislative Procedure – Sen. Rodric Bray (R-Martinsville)*
- Tax and Fiscal Policy – Sen. Travis Holdman (R-Markle)
- Utilities – Sen. James Merritt (R-Indianapolis)
- Veterans Affairs and The Military – Sen. James Tomes (R-Wadesville)*
FEDERAL GOVERNMENT RELATIONS
IBA Op-Ed Published
An op-ed on the Farm Credit System by IBA President and CEO Amber Van Til – “Ending Mission Creep” – was published Wednesday in The Journal Gazette, Fort Wayne. The op-ed details the overreach of the FCS and reviews the pending Farm Bill.
Additionally, to assist IBA members in discussing the issue, the IBA has created Farm Credit talking points.
Quarles Outlines Changes to Expect in Stress Testing Framework
As the Federal Reserve works on finalizing its “stress capital buffer” (SCB) proposal and makes continued changes to the overall stress testing and capital planning regime, Vice Chairman for Supervision Randal Quarles on Nov. 9 outlined several areas where the Fed governors are working to refine the process.
Specifically, the Fed is seeking to calibrate the SCB to minimize the volatility that stress tests introduce in capital planning while preserving the “dynamism” of stress testing, Quarles said. He added that he supports removing the leverage buffer from the SCB proposal. Additionally, he said he expects the Fed to disclose more details about supervisory stress test models and results “starting in early 2019” and would propose further transparency measures.
With the SCB proposal set to end the “pass or fail” aspect of the Comprehensive Capital Analysis and Review process, Quarles indicated that “the time has come to normalize the CCAR qualitative assessment by removing the public objection tool, and continuing to evaluate firms’ stress testing practices through normal supervision.”
Read the speech.
The Federal Reserve last Friday released a report on its regulatory and supervisory activities for banking companies demonstrating the health and soundness of the banking industry. Figures in the report show that industry profitability ratios are at their highest levels since 2007.
Nonperforming loans have reached their lowest point since the runup to the financial crisis, and capital levels are substantially higher, the report noted. The share of institutions not well-capitalized is lower than at any point since 2006. The report also showed that the 10 largest banking firms’ concentration of outstanding loans and leases continues to shrink.
Additionally, the report outlined upcoming supervisory priorities for firms in different Fed supervisory portfolios. For the largest firms, the Fed is focusing on several aspects of capital, liquidity, governance and controls, and recovery and resolution planning; while at other large U.S. and foreign banks, the focus is on more tailored topics within those categories. For regional and community banks, the Fed is looking at credit risk, operational risk, sales incentives, liquidity risk and Bank Secrecy Act compliance.
Read the report.
Regulators Issue Cybersecurity Resource Guide
Federal regulators have released a cybersecurity resource guide for financial institutions that categorizes various industry resources and provides links for additional information. The Federal Financial Institutions Examination Council guide lays out resources such as Sheltered Harbor, the financial services sector’s initiative to protect against natural disasters and cybercrime.
View the guide.