Get Crucial Compliance Training at SDBA School
Compliance is one of the most crucial and consuming issues in the financial services industry today. The regulatory agencies are making it clear through their examinations of banks that no institution can afford to be without a comprehensive, well-managed compliance program. As a major resource for banking education, the SDBA is offering the 2008 Compliance School on Sept. 30 to Oct. 3 at the Holiday Inn City Centre in Sioux Falls. This school ensures that financial institutions have the latest knowledge and preparation they need to properly handle compliance issues. The school is designed at a basic to intermediate level to provide compliance officers with the knowledge and understanding of laws and regulations that impact lending practices, deposit functions, marketing and management. Attendees will have the opportunity to interact with nationally-known compliance experts and with others involved in compliance from institutions similar in size to their own. Learn more and register. u

FDIC Releases Article on Small-Dollar Loan Pilot Program
Three months of data from the FDIC's Small-Dollar Loan Pilot Program shows that small-dollar loans have provided participating banks with some cross-selling opportunities that could develop into profitable customer relationships, according to an agency article released last week. But the FDIC said the sparse early results are inconclusive. "Few banks provided profitability data for their programs, primarily because most programs are new and have a relatively low volume of loans," the article says. "However, three banks indicated that they broke even on the small-dollar loan product, while two indicated that they did not." Thirty-one banks are participating in the two-year pilot project that is intended to help the FDIC identify the best practices in affordable small-dollar loan programs. ABA continues to work with the FDIC on its study of the issue. Read the article. u

Compliant ATMs Need Safe Harbor
From Revised ADA Accessibility Standards
ABA last week asked the Justice Department to reconsider its decision to exclude ATMs that comply with 1991 Americans with Disabilities Act accessibility standards from a safe harbor that would exempt them from compliance with the new revised standards. "ABA believes that the department's decision to exclude existing ATMs from safe harbor is based on a misinterpretation of the regulation and a flawed factual premise which undermines the department's regulatory burden analysis," the association said in a comment letter. ABA also urged Justice to clarify the proposed effective date for the revised ADA standards, and to allow two years following publication of the final rule before the revised standards become effective for existing ATMs that do not comply with the 1991 standards. Read the letter. u

DoD: No Need to Change Payday Lending Final Rule
The Defense Department has delivered a report to Congress that says there is no need to make any significant change in its ABA-supported payday lending final rule, which went into effect last Oct. 1, ABA regulatory experts learned last week. The report, which evaluates the rule's implementation, emphasizes that the regulation provides effective credit protection for both military members and their families. ABA -- working with the DoD, Treasury, the White House and the regulatory agencies -- led a joint industry effort to craft a balanced regulation that addresses problems with abusive lending while still ensuring that service members and their dependents continue to have access to mainstream credit and bank products. u

IRS Issues Final Regs Implementing Sub S Reforms
The Internal Revenue Service has issued final regulations that implement the ABA-supported Subchapter S provisions included in the 2004 American Jobs Creation Act. ABA worked closely with Congress for several years to pass the Sub S reform measures that, among other things, increase the number of S corporation eligible shareholders from 75 to 100; treat up to three generations of family members as a single shareholder; allow existing IRAs that own bank stock to be eligible shareholders; and exclude investment securities income from passive income limitations. Read the final regulations. u

Trust Training Offered in September
The Schools of Banking is offering two opportunities for trust training in September.  The School of Trust and Financial Services will be held Sept. 22-26, 2008, in Omaha, Neb., and the Advanced Trust Operations School will be held Sept. 23-25, 2008, also in Omaha. More information and registration form. u