It has been my honor to serve as Board Chairman of the Colorado Bankers Association for the past year. While the end of my term draws to a close, CBA’s commitment to fighting for the banking industry and the people of Colorado never ends. At press time, we just concluded the state legislative session. CBA Government Relations Director Alison Morgan and the lobbying team worked tirelessly during this session, monitoring numerous potentially damaging bills, meeting with legislators and testifying on behalf of Colorado’s banking industry.
One particularly important fight at the state capitol was related to DORA’s Sunset Report for the Division of Banking and the Banking Board. This report included a recommendation authorizing a credit union to purchase the assets and liabilities of a bank. This recommendation was initially based upon the false assumption that credit unions pay state income tax and there would not be a loss of revenue to the state. Fact: Banks are the economic drivers in Colorado for commercial loans and agriculture loans. Commercial lending is not a credit union’s book of business and credit unions are not meeting their caps for commercial loans in the present market. It was CBA’s stance that this is a legislative policy debate and should be addressed separately so we can fully debate the merits of the issue and add necessary guardrails to hold credit unions accountable to regulators and customers impacted by these decisions.
Alison and CBA President/CEO Jenifer Waller recruited and prepped a number of bankers to testify multiple times against the passage of this bill. In early May, the State Senate voted 33-1 to pass the amended version of HB24-1351 Concerning the Sunset for the Division of Banking without the controversial Section 9 which would have allowed a credit union to purchase the assets and liabilities of a bank. In the final hours of the final day of the session, the House concurred with a 53-9 vote, and the amended bill was passed.
It was impressive to witness the CBA-lead team of advocates go all-in on this fight against allowing credit unions to buy banks. Advocacy is critical for the good of our industry and seeing new and seasoned advocates in the thick of it was a testament to the good work being done on behalf of banks and their customers all across Colorado.
In the fall, and again this spring, I joined Jenifer and other bankers in Washington, D.C., to meet with members of Congress to express our concerns about the glut of regulatory issues facing the banking industry and to explain how those regulations can negatively impact consumers. Actively participating as an advocate for our industry is crucial given some of the challenges and over-regulation we currently face like higher capital requirements, the Credit Card Competition Act and CFPB’s aggressive attack on NSF and overdraft fees. If implemented, these regulations may reduce access to affordable basic banking services for low- and moderate-income individuals and families.
Another example of the good work being done by the CBA team involves a Colorado bill to ban “junk fees.” The measure targeted mandatory fees placed on customer bills by companies, such as increasingly common hotel resort fees, surcharges on ticket purchases for events and fees added to personal banking transactions. CBA initially sought amendments in that bill to exempt financial institutions. CBA ultimately opposed the legislation when it reached the Senate due to several unfavorable amendments. The CBA team worked with a coalition to kill the bill in the Senate with only three weeks left in the 2024 session. Another win for our industry.
Through these examples, it’s easy to see the value that the Colorado Bankers Association brings to its membership. An association thrives and excels when its membership grows. I am proud of our membership growth and the effort to engage all banks across the state. With new members, we ensure the financial stability of the association, and we benefit from fresh ideas, new energy and an untapped yield of future leaders. Our members help raise our voice in the community.
With CBA on our side, I am optimistic about our industry and its future. I have the greatest respect for Jenifer and her team. The CBA team is devoted to providing exceptional work on your behalf. I would also like to take a moment to thank my fellow officers: Kevin Erickson, Brett Wyss and Mark Hall. It has been a pleasure to work so closely with these gentlemen over the last several months.
I have enjoyed the opportunities to meet new people and make new connections at events like the upcoming Banker Summit. To represent you and the association has been an honor I will treasure. Though my term is ending, the work will continue. The association is in capable hands. My best to you all. — S.O.
