OCC's Hsu Says CRA Modernization on 'Aggressive Timeline'

Testifying before the Senate Banking Committee on Tuesday, Acting Comptroller of the Currency Michael Hsu said that the OCC has aggressive internal timelines for working with the Federal Reserve and FDIC to put forward a joint rulemaking that strengthens and modernizes the Community Reinvestment Act.

“The teams are working very quickly,” Hsu said. "We have given internal, kind of aggressive timelines on that, but it is a complicated rule and we want to make sure that we do it right and we will be working with all deliberate speed.” He later added that “we currently have groups that are working pretty much around the clock on coming up with options to strengthen the CRA to make sure that low and moderate-income communities have their needs met.”

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USDA, HUD, VA and FHFA Announce Extension of Eviction Moratoria

The Department of Agriculture, Department of Housing and Urban Development, Department of Veterans Affairs and the Federal Housing Finance Agency announced late Friday that at the request of the Biden administration, they would extend their foreclosure-related eviction moratoria until Sept. 30, 2021. This announcement came just ahead of the expiration of the Centers for Disease Control and Prevention’s eviction moratorium on July 31.

The agencies encouraged owners and operators of federally assisted and financed rental housing to “make every effort to access Emergency Rental Assistance resources to avoid evicting a tenant for non-payment of rent. These resources are available in every state, and many counties and cities are also running local programs.” Read more.

New CDC Order Temporarily Suspends Evictions Through Oct. 3

As COVID-19 cases—including those connected to the Delta variant—continue to spike, the Centers for Disease Control and Prevention on Tuesday issued a new order directing evictions to be suspended through Oct. 3, “in counties with heightened levels of community transmission.”

The CDC said that the order is “intended to target specific areas of the country where cases are rapidly increasing, which likely would be exacerbated by mass evictions.”

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SBA Issues Guidance on Direct PPP Loan Forgiveness

The Small Business Administration yesterday released guidance on how it will accept Paycheck Protection Program loan forgiveness applications directly from borrowers—bypassing the lending institutions—for loans of $150,000 or below. The direct borrower forgiveness process is an “optional technology solution that SBA is providing to PPP lenders that will leverage SBA’s existing and proven platform,” SBA said.

PPP lenders that opt-in to the direct borrower forgiveness program will be provided with a single secure location for all of their borrowers with loans of $150,000 or less to apply for loan forgiveness through the platform using the electronic equivalent of SBA Form 3508S. Upon receipt of notice that a borrower has applied for forgiveness through the platform, lenders will review the loan forgiveness application in the platform and issue a forgiveness decision to SBA. The forgiveness platform will begin accepting applications from borrowers on Wednesday, Aug. 4, 2021. 

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SDBA Seeking a Member Services Coordinator

We are hiring.Do you enjoy a challenging, ever-changing environment where prioritizing and multitasking are the norm? Are you proactive and forward thinking? Do you take pride in your work? Are you a natural relationship builder and collaborative problem solver?

If you answered “yes” to these questions, you may be interested in applying for the member services coordinator position with the South Dakota Bankers Association. The SDBA is the premier trade association for banks in South Dakota. In this role, you will work in collaboration with our team to ensure that our members receive exceptional customer service and support. This position is located in Pierre, S.D.

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Registration Open for SDBA's LEAD STRONG: Women in Banking Conference

Photo of women in an office.The SDBA’s 2021 LEAD STRONG: Women in Banking Conference, which promises to educate, enlighten and engage, will be held on Sept. 14-15 at the Sioux Falls Convention Center in Sioux Falls. This is an opportunity to connect with one another and celebrate all we have endured since we last met.

In addition to a great lineup of speakers and ample opportunity to network, come prepared for some interactive sessions. Bring your best listening skills, your most insightful questions for our industry leader panel, and bring a book or two that you would like to exchange during the “Once Upon a Time...” session. The conference will begin Tuesday evening with a reception at R-Wine Bar followed by a full day of sessions on Wednesday at the Convention Center.

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ABA: Banks Committed to Reducing Number of Unbanked Americans

In a statement for the record shared ahead of a House Financial Services subcommittee hearing on expanding access to the financial system yesterday, ABA emphasized the banking industry’s commitment to reducing the number of unbanked individuals in the country. The statement details ABA's support for the Bank On movement, a national effort led by the Cities for Financial Empowerment Fund, designed to extend access to banking services to U.S. households that remain unbanked. Bank On-certified accounts include features like low costs, no overdraft fees, robust transaction capabilities via a debit or prepaid card and free online bill pay.

“More than 7 million households remain outside the banking system without a deposit account. America’s banks believe everyone should have access to the banking system and the safety, convenience and other benefits that come with a bank account—and we are committed to continuing our efforts to build trust with unbanked consumers,” the ABA said, adding that since it began encouraging banks to offer Bank On accounts in October 2020, the number of Bank On-certified accounts has more than doubled.

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Registration Open for SDBA's 2021 IRA School

SDBA IRA SchoolThe SECURE Act impacts two main topics: RMDs and death distributions. The SDBA’s 2021 IRA School on Sept. 28 to Oct. 1 in Sioux Falls will address these relevant changes.

IRAs are one of the most complicated areas of bank personnel responsibility. Continual education is necessary to ensure confidence. Working with IRAs is a process and must start with a strong foundation. This school can provide this foundation through a comprehensive curriculum.

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Registration Open for SDBA's 2021 Bank Technology Conference

SDBA Bank Technology ConferenceTechnology and innovation have been transforming financial services since long before artificial intelligence and iPhones, and your role as an IT professional is ever-changing, especially in today’s environment.

The SDBA'S Bank Technology Conference on Sept. 8-9 in Sioux Falls is designed to provide support as you keep on top of technology trends, navigate the business of banking, and build and sustain your bank’s technology strategy—all to improve access and better serve your customers. This conference will provide you with an opportunity to learn from industry experts, network with IT colleagues, and visit with exhibitors to see and experience the latest in products and services.

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SDBA Women in Banking Conference Lodging Open

Lodging is now open for the SDBA's LEAD STRONG: Women in Banking Conference set for Sept. 14-15 at the Sioux Falls Convention Center. To reserve a room at the Sheraton Sioux Falls, click here. The room block will be released on Aug. 15. 

The SDBA is looking forward to seeing people face-to-face at this year's Women in Banking Conference in Sioux Falls. Be watching for the full agenda and event registration, which is coming soon. 

ABA Urges Bankers to Encourage Lawmakers to Co-sponsor ECORA Act

The ABA is calling on bankers to encourage their lawmakers to co-sponsor the Enhancing Credit Opportunities in Rural America Act—a bill that would promote greater access to credit and reduce borrowing costs for ag producers.

As net farm income declines, the availability of low-cost credit is extremely important to the agricultural sector, and bankers are urged to ask Congress to co-sponsor this important bill to help the nation's farmers and ranchers and revive rural ag economies. Take action now.

Still Time to Register for SDBA's Ag Credit Conference Next Week

Ag Conference GraphicIt is not too late to make plans to attend the SDBA's Agricultural Credit Conference next Wednesday and Thursday, July 21-22, in Pierre at the Ramkota Hotel & Conference Center.

Session topics include the U.S. economy in 2021 and beyond, current fraud trends impacting the banking industry, cutting expenses versus increasing yields, proper loan restructuring, weather risk in production agriculture, higher prices and increased volatility in the grain and cattle markets, avoiding the pitfalls of marijuana and hemp, federal banking and policy update, and speed networking. The event will also include a networking reception on Wednesday evening and an exhibit hall. 

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FSB Outlines Next Steps on Climate Risk Disclosures, Tackles Climate 'Data Gaps'

As the annual summit of G20 finance ministers and central bank governors kicked off in Italy yesterday, the Financial Stability Board released its roadmap for global regulatory coordination on climate-related financial risks. The FSB roadmap focuses on four main approaches: firm-level disclosures, data, analysis of vulnerabilities and regulatory and supervisory practices.

Regarding disclosures, in order to promote consistency, the FSB said it would use frameworks based on the work of the Task Force on Climate-Related Financial Disclosures and the in-development IFRS sustainability disclosure standards. Once those standards are issued and should the International Organization of Securities Commissions endorse them, local regulators would then adopt their own frameworks for using the international standards.

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FinCEN Issues National Anti-Money Laundering Priorities

The Financial Crimes Enforcement Network last week issued government-wide policy priorities for anti-money laundering and countering the financing of terrorism. According to the priorities, the most significant AML/CFT threats currently facing the country are corruption, cybercrime, domestic and international terrorist financing, fraud, transnational criminal organization activity, drug trafficking organization activity, human trafficking and human smuggling, and proliferation financing.

In a separate interagency statement issued by FinCEN and the federal banking agencies, the agencies stated that publication of the priorities “does not create an immediate change to Bank Secrecy Act requirements or supervisory expectations for banks.” The agencies said they will revise their BSA regulations within the next six months to address how the priorities will be incorporated into banks’ BSA requirements.

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Senate Lawmakers Introduce Bill to Level Playing Field Between Banks, FCS

Sens. Jerry Moran (R-Kan.), John Boozman (R-Ark.), Mike Rounds (R-S.D.), Kevin Cramer (R-N.D.) and Roger Marshall (R-Kan.) last week introduced S. 2202, the SDBA and ABA-advocated Enhancing Credit Opportunities in Rural America Act of 2021, which would end the taxation of interest earned from agricultural real estate loans.

This would not only reduce servicing costs for community banks providing these types of loans, it would also level the playing field between banks and the tax-advantaged Farm Credit System—making it easier for banks to support the farm sector through real estate loans. A bipartisan companion bill was introduced in the House earlier this year by Reps. Ron Kind (D-Wis.) and Randy Feenstra (R-Iowa).

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SDBA Seeking Photos for 2022 Scenes of South Dakota Calendar

Scenes of South Dakota Calendar CoverThe SDBA is currently accepting photo submissions for its 2022 Scenes of South Dakota Calendar. The calendar features photos of South Dakota submitted by South Dakota bankers, their family members and customers.

If you or one of your bank’s employees, a relative or customer are an amateur photographer and would like the opportunity to have your creativity displayed in homes and businesses across the state, send the SDBA your photos of farms, barns, agricultural activities, historical South Dakota locations, county fairs, carnivals, parades or festivals, fall colors, winter snowfalls, spring flowers, summer fun, etc.

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SD Department of Health Releases Medical Cannabis Administrative Rules

The South Dakota Department of Health (DOH) last Thursday released its proposed administrative rules to implement the medical cannabis program created by voters in Initiated Measure 26 (IM 26). IM 26 directs the DOH to enact final administrative rules for medical cannabis by Oct. 29, 2021, and the agency is on schedule to meet this deadline, according to a press release. 

“The proposed administrative rules are one of many steps our Department has taken to develop a safe and responsible medical cannabis program in South Dakota, as the voters intended,” said Secretary of Health Kim Malsam-Rysdon.

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SDBA to Hold Ag Credit Conference on July 21-22

SDBA Agricultural Credit Conference

The SDBA will hold its 2021 Agricultural Credit Conference on July 21-22 at the Ramkota Hotel & Conference Center in Pierre.

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Kristina Schaefer, David Bangasser, David Nelson and Steve Bumann Elected as SDBA 2021-2022 Officers

The South Dakota Bankers Association (SDBA), the professional and trade association for South Dakota’s financial services industry, elected officers for its 2021-2022 Board of Directors. The SDBA is honored to have the following individuals serve as officers:

  • Chair: Kristina Schaefer, General Counsel & Chief Risk Officer, First Bank & Trust, Sioux Falls
  • Chair-Elect: David Bangasser, Southern Region President, Dacotah Bank, Sioux Falls
  • Vice Chair: David Nelson, President/CEO, First Fidelity Bank, Burke
  • Immediate Past Chair: Steve Bumann, CFO, BankWest, Inc., Pierre

The official election took place at the SDBA’s Annual Business Meeting held on June 15 in Rapid City. The term for the new officers is effective now through next year’s Annual Business Meeting.

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ABA Report: Ag Lending Remains Strong Despite Small Decrease in 2020

Agricultural lending by the nation’s farm banks dipped 1.8% to $98.6 billion in 2020 as demand for agricultural production loans declined slightly, according to ABA’s annual Farm Bank Performance Report released on Monday. Agricultural production loan demand declined 6.7% due to rising costs, supply and production bottlenecks, price volatility and an increase in federal cash payments, the report found. Government payments also enabled producers to pay down existing loan balances.

“American farm banks have remained healthy this past year and continued to play a critical role in supporting farmers and the broader U.S. economy through the turbulence of 2020,” said ABA Chief Economist Sayee Srinivasan. “While the agricultural sector will continue to face challenges as the economy reopens and recovers from the coronavirus pandemic, the strong asset quality and capital levels of America’s farm banks will help ensure that they continue to provide support to rural communities.”

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