2016 Campaign Trail Featured Topic at SDBA State Legislative Day
 The 2016 race for the White House is proving to be one of the most interesting and intense in the past 50 years. Outsiders on top of the polls. A socialist Democrat challenging a dynastic Hillary Clinton. A HUGE field of Republicans. “The Donald” Trump driving the media and the GOP party nuts. A terrorist attack in Paris that may change the whole caucus and primary season.
Professor Steffen W. Schmidt will present "Fear and Loathing in the Campaign Trail 2016" during the SDBA's 2016 State Legislative Day on Feb. 10 in Pierre. Schmidt will slice and dice this exceptional political season, so fasten your seat belts.
The day will also include a luncheon and legislative update, a chance to visit with legislators at the Capitol, and an evening reception and dinner with legislators and constitutional officers. Gov. Dennis Daugaard has also been invited to speak.
Events will be held at the Ramkota RiverCentre. View the full agenda. Register online.
SBA To Host All-Lender Web Conference
U.S. Small Business Administration's (SBA) will hold SBA Connect, an all-lender web conference on Jan. 13. During the web conference, lenders will be able to converse with and receive updates from senior staff about SBA loan programs.
The web conference will be held 1-2 p.m. CT. Register for the web conference. Questions, email SBA.
Fed Seeks Comments on Countercyclical Capital Buffer Proposal
The Federal Reserve is seeking public comment on a proposed policy statement outlining the framework the Board would follow in setting the Countercyclical Capital Buffer. The proposed policy outlines several factors the Fed should consider as it evaluates settings for the buffer.
The CCyB is a tool by which the Fed can raise the capital requirements on internationally active banking organizations--typically those with assets of more than $250 billion or $10 billion in on-balance sheet foreign exposures--when there is a heightened risk of above-normal losses in the future. Having such a mechanism in place allows banks to better absorb shocks to the financial system and helps moderate fluctuations in the credit supply. Once phased in, the buffer could range from 0 percent of risk-weighted assets in times of moderate vulnerability to a maximum of 2.5 percent when risk is determined to be higher. Banks failing to meet the buffer would face restrictions on capital distributions and the payment of discretionary bonuses.
Under the proposed framework, the Federal Reserve Board would take into account a range of financial system vulnerabilities and other factors, including leverage in the nonfinancial sector, leverage in the financial sector, maturity and liquidity transformation in the financial sector and asset valuation pressures. The Board would also monitor a number of financial and economic indicators to assess risk to financial stability. The buffer will be phased in beginning in 2016. Comments on the proposed policy statement are due Feb. 19, 2016. Read more. For more information, contact ABA's Hugh Carney.
Fed Issues Guidance on Capital Planning Expectations
The Federal Reserve last week released guidance that consolidates capital planning expectations--including those defined by the Comprehensive Capital Analysis and Review process-for large financial institutions. It also clarifies differences in those expectations based on firm size and complexity, with the guidance for firms between $50 billion and $250 billion in assets reflecting their lower systemic risk profile and less complex operations.
For example, the guidance notes that senior management of the largest firms should review the capital planning process quarterly, whereas smaller institutions should review it at least semi-annually. In another example, the Fed says it expects larger firms to have a more formal risk identification process and to use “quantitative approaches supported by expert judgment” for risk management. Smaller firms can have a less formal risk identification process and can use either qualitative or quantitative risk measurement approaches.
The guidance also clarifies the expectations for the largest and most complex firms, with total consolidated assets of more than $250 billion. The guidance is effective for the 2016 CCAR cycle. Read more.
National Conference Focuses on Community Reinvestment
Economic opportunity does not happen in a vacuum—it takes a coordinated approach to housing, education, public safety, healthcare, transportation and jobs. At the 2016 National Interagency Community Reinvestment Conference, find out how these pathways to opportunity can create vibrant neighborhoods for all Americans.
Join a diverse group of public, nonprofit and private sector leaders at the premier conference for community development on Feb. 7-10, 2016, in Los Angeles. The conference is sponsored by the Federal Reserve Bank of San Fransisco, Federal Deposit Insurance Corporation, Office of the Comptroller of the Currency and the Community Development Financial Institution Fund.
Highlights will include:
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Community Reinvestment Act examination training with regulator insights.
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Emerging ideas and best practices in community development.
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Tours of Los Angeles that explore the opportunities and challenges of a fast-changing and revitalizing city.
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Opportunities to discuss the transformation of Los Angeles’ downtown into a major career and entertainment destination.
Don’t miss this opportunity to talk to your regulators, meet with your peers, and learn how CRA loans, investments and services can have a positive and lasting impact in low- and moderate-income communities. The deadline to register is Jan. 15. Learn more and register.
Happy New Year's from the SDBA
In order that our employees may ring in the new year with friends and family, the SDBA Office will close at noon on New Year's Eve, Thursday, and will reopen for normal business hours on Monday, Jan. 4.
From our family to yours--Happy New Year! The SDBA hopes 2016 is a great year for you, and we look forward to serving you.
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