Pub. 2 2012-2013 Issue 5

6 O V E R A C E N T U R Y : B U I L D I N G B E T T E R B A N K S - H E L P I N G C O L O R A D A N S R E A L I Z E D R E A M S A Word From CBA... Advocating for Yourself, Your Bank and Industry The CBA Board last fall saw a critical need for bankers to be stronger advocates for our interests, so CBA is off and running with an exciting new program to help bankers become stronger proponents for themselves, their banks and the industry. It is the Center for Bank Advocacy – A Training Practicum . Bank- ing’s government relations issues (therefore its vulnerabilities) are more numerous than what others face: While other indus- tries focus on 1-2 big issues at a time, banking is drowning in countless federal and state issues of major importance. The first sessions for the initial Advocacy class have been terrific successes. The participants are very enthusiastic. They want to be better equipped to advocate successfully, using relationships just as you use “relationship banking.” They are learning that public officials andmedia rely more on people they know and trust just as you do. They’re learning to build relationships early; you don’t know when you need them. CBA’s Center for Bank Advocacy is a yearlong, hands-on course in increasing banks’ influence on public policy. It in- cludes nine concentrated sessions, several other events and a brief project relevant to the bank. The course is capped by a bank advocacy trip toWashington D.C. This is “learn by doing” with expert guidance along the way. The Center’s programming covers: • Election analysis, • State and federal banking legislation, regulation, litigation and image issues; and broader issues impacting banking, • Gov- ernment processes and requirements – elections, campaigns, legislation, regulation, community/media/customer relations, • Roles, risks and rewards of community and political involve- ment, • Volunteer community involvement and bank/industry image, and • Influence activities – customer communications, community/public communications, lobbying, public official relationships, regulatory influence and more. Emphasis is on active participation. Why These advocacy skills are needed as our industry struggles with Basel III, a battlefield that will determine community bank- ing’s future. If the battle is lost we will see fewer community banks, less lending to certain customers, and damage to our communities. If it is won then community banks can continue to serve their customers well, while still dealing with an avalanche of Federal regulation. Banks’ Basel III concerns focus on the amount of capital required, the definitions of that capital, the risk-weighting of assets where regulators determine broad assessments of loan risk, and therefore the bank’s profitability, ability to serve customers, and, for some, even the survival of the bank. The viability of the bank directly impacts your career and probably your investment in the bank. Each banker has a lot at stake. On the state level we are fighting legislation that would devastate the foreclosure process. The damage it would inflict on lenders and borrowers alike can’t be overstated – establishing requirements the secondary market cannot meet (thus imperiling the 80% of CO mortgages sold there now) and creating a protracted process that allows homeowners delinquent in payments to occupy the house indefinitely. CBA is fighting this ugly proposal, but concurrently we also must spend resources on dealing with energy efficiency programs for commercial real estate, standards for proposed mandated reporting of suspected elder abuse and penalties for not do- ing so, complications under Federal law that preclude and penalize banks from providing services to the marijuana businesses recently blessed under amendment 64, and many other issues. These federal and state issues are why your CBA Board of Directors focused on enhancing our industry’s advocacy skills. We’re on our way with this first class of participants and we look forward to more participants next year. Plan on it. For your sake and your bank’s. Q Don Childears CBA President/CEO