SDBA eNews: December 18, 2014

In This Issue

Happy Holidays from the SDBA

 
Instead of sending Christmas cards to our members this year, the South Dakota Bankers Association has made donations to two local charities: American Red Cross and Pierre Area Referral Service.

The organizations were chosen due to the services they provided to those displaced by a fire which destroyed an extended-stay hotel in Pierre last month.

During the holiday season, our thoughts turn gratefully to those who have made our success possible. It is in this spirit that we at the SDBA say thank you and best wishes for the holidays and new year.


New Credit Scoring Tool to Streamline Smaller SBA Loans


The Small Business Administration last week announced a new credit scoring tool to help make small-dollar SBA loans more cost-effective for lenders. The tool uses FICO’s Small Business Scoring Service product to expedite credit decisions.

Using dynamic and predictive analytics, SBSS automates a major part of SBA’s required credit analysis, reducing reliance on cash-flow analysis and allowing lenders to make credit decisions faster, the SBA said. The tool applies to all SBA 7(a) loans of $350,000 or less, excluding SBAExpress and Export Express.

Read more.


Upcoming Events

View all SDBA events

Sponsorship Opportunity

Learn more about sponsoring the SDBA eNews.


Questions/Comments

Contact Alisa DeMers, SDBA, at 800. 726.7322 or via email.

2014 SD Banking Code Available Online


The 2014 South Dakota Banking Code is now available online.

This publication is published annually and includes current state laws specific to banking: Title 51A (Banks and Banking), Title 54 (Debtor and Creditor), Chapter 4-6A (Insurance on Public Deposits), Chapter 10-43 (Income Tax on Banks), and Chapter 43-41B (Unclaimed Property: Uniform Act).

The 2014 South Dakota Banking Code is available for free online or you can order a printed copy.


2015 Beginning Ag Lenders School Filling Up Fast


Registration is open for the SDBA's 2015 National School for Beginning Ag Lenders, and spots are filling up fast. The school will be held June 22-25, 2015, at Black Hills State University in Spearfish.

Lead instructor is well-known ag guru Dave Kohl, professor emeritus, Virginia Tech, and president of AgriVisions in Blacksburg, Va. Joining Kohl are Denny Everson, co-developer of the school and director of First Dakota National Bank in Yankton, and Bob Craven, director of the Center for Farm Financial Management at the University of Minnesota.

This school is limited to 60 students, and more than half of the spots are have been filled by ag bankers from South Dakota, North Dakota, Minnesota, Oklahoma and Arizona. 

Register early to ensure your attendance at this popular national ag banking school. 


Rounds Assigned to Senate Banking Committee


On Monday, the U.S. Senate Republicans announced their committee assignments for the 114th Congress.

As requested, Senator-Elect Mike Rounds has been assigned to the Banking, Housing and Urban Affairs Committee. He has also been assigned to the Armed Services, Environment and Public Works, and Veterans' Affairs committees.

Sen. John Thune has been assigned to the Agriculture, Nutrition and Forestry; Commerce, Science and Transportation; and Finance committees

The assignments are subject to ratification by the Republican Conference, as well as the full Senate.


State Bank Regulators Propose Model Regs on Virtual Currency


The Emerging Payments Task Force of the Conference of State Bank Supervisors Wednesday announced its draft framework for model state-level regulation of virtual currencies such as bitcoin. The task force said its goal was to ensure that consumers are protected when using virtual currencies, that markets remain stable and that transactions are transparent to law enforcement.

The framework seeks to employ a “technology-neutral” approach based on licensing and monitoring activities one party performs on behalf of another that are already covered under state laws. These include money transmitting, exchanges and third-party services that facilitate these functions.

“While state approaches to effecting regulation of virtual currency activities may differ, CSBS and its members recognize the value of consistency and clarity for regulators and regulated entities alike,” the group said. “CSBS and its members are committed to supporting state efforts at consistent and uniform regulation including through model regulatory requirements and the drafting of uniform regulatory and/or statutory provisions.” Comments are due by Feb. 16, 2015. Read more.


ABA Wins Expansion of Small Bank Reg Relief


The House and Senate last week passed a bill raising the threshold for small bank holding company regulatory relief from $500 million to $1 billion, sending the bipartisan bill to President Obama for his signature. The measure is a long-standing policy priority for ABA and the state bankers associations. The bill would provide relief for approximately 88 percent of bank holding companies and 75 percent of savings and loan holding companies.

“This legislation accomplishes a major goal,” remarked ABA EVP James Ballentine. “It makes it easier for community banks and thrifts to issue debt and raise capital -- and thus increase the lending that is so critical to growing their local economies.”

The bill requires the Federal Reserve to revise its policy statement providing relief for small BHCs. The Fed has welcomed the legislation, with Fed Governor Daniel Tarullo recently calling on Congress to raise the threshold.


Opportunity for Beginning Ag Producer Programming Partnership


SDSU Extension is interested in visiting with ag lending institutions who are providing or considering providing training for clients who are beginning beef producers. 

Various banks across South Dakota are currently providing great programs to their clients, and SDSU Extension feels there is an opportunity to partner and bring the curriculum from these institutions and Extension’s beefSD program together to strengthen state-wide programs and provide a great educational opportunity for beginning producers. By partnering, a larger number of beginning producers could be impacted by these programs. 

If you currently have a program for beginning producers or are considering starting one and are interested in partnership, contact Adele Harty at 605.394.1722 or Ken Olson at  605.394.2236.