South Dakota Banking Industry Defeats Government Mandate Bill

The SDBA and its membership were successful this week in defeating a bill before the South Dakota Legislature that would have mandated how banks should operate their businesses. Senate Bill 182 titled “Prohibit discriminatory actions against persons engaged with the firearm industry” was brought by special interest groups outside South Dakota. The legislation was aimed only and squarely at banks and would have restricted a bank’s ability to do business with the state if a bank has policies regarding banking firearms customers. 

The measure would have eliminated a banking institution’s capacity to make fair business and lending decisions on financial factors. Instead, it mandated that banks who conduct business with the state are required to do business with a specific industry, regardless of considerations, including credit history or the ability to repay.

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Republican Lawmakers Call for Changes to CFPB's Section 1071 Proposal

Three GOP lawmakers yesterday raised concerns about the CFPB’s pending rulemaking to implement Section 1071 of the Dodd-Frank Act. Citing concerns received from industry stakeholders, including banks of all sizes, Reps. Blaine Luetkemeyer (R-Mo.), French Hill (R-Ark.) and Roger Williams (R-Texas) flagged several issues and called on the CFPB to remedy these issues within the final rulemaking.

In particular, the lawmakers expressed concerns about the potential effects of the rule on small banks and urged the CFPB “to exclude as many small financial firms as possible” and also called for a longer implementation period, given the complexity of the rule.

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ABA Foundation Launches 2022 Financial Education Campaigns, Unveils Free Resources for Banks

The ABA on Tuesday launched its 2022 financial education campaigns, calling on America’s banks and their more than two million employees across the nation to participate in these important and effective industry-wide efforts to promote consumer financial readiness. 

This year, the ABA Foundation will offer four specific initiatives that encourage banker volunteers to share important financial knowledge in their local communities. All of the Foundation programs are completely free to ABA member and non-member banks: 

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SDBA Holds State Legislative Day in Pierre

Photo of State Legislative DayMore than 80 bankers from across the state gathered in Pierre yesterday for the SDBA's State Legislative Day. The annual event is an opportunity to stay up-to-date on both state and federal legislation which could affect the banking industry and to make sure our industry is heard. 

Presenter Keith Prather spoke to attendees about issues affecting the economy and if 2021 is really in the rear view mirror, and Gov. Kristi Noem spoke about issues of importance being discussed at the State Capitol and took questions from bankers. The day also included special sessions for emerging bank leaders, an SDBA Legislative Committee meeting and an association update from SDBA President Karl Adam. The day culminated with a reception with state legislators and constitutional officers.

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SDBA Unveils Banks Make a Difference Survey Results

South Dakota Banks Make a Difference in Our CommunitiesSouth Dakota banks and their employees are cornerstones of their communities, providing philanthropy and volunteer leadership that helps transform lives. South Dakota banks make a difference in our communities.

The SDBA unveiled the results of its Banks Make a Difference Survey during its State Legislative Day yesterday in Pierre. Copies of the promotional handout were provided to all attendees, state legislators, and mailed to all banks and branches.

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SDBA Seeking Candidates for Vice Chair

SDBA LogoAre you interested in becoming an officer of the South Dakota Bankers Association? SDBA officers include the chair, chair-elect, vice chair and immediate past chair. The SDBA is currently seeking people who are interested in running for the vice chair position, which will be elected at the NDBA/SDBA Annual Convention on June 15, 2022, in Bismarck.

The current chair-elect, David Bangasser (Dacotah Bank, Sioux Falls), will automatically assume the chair position on June 15. The current vice chair, David Nelson (First Fidelity Bank, Burke), will be eligible to run for chair-elect. The position of vice chair will be up for election. Current Chair Kristina Schaefer (First Bank & Trust, Sioux Falls) will become immediate past chair.

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Rep. McHenry, Sen. Tester to Speak at ABA Washington Summit

Sen. Jon Tester (D-Mont.) and Rep. Patrick McHenry (R-N.C.) have been added to the speaker lineup for ABA’s Washington Summit, a free in-person and virtual event to be held March 7-9. Tester, a key member of the Senate Banking Committee, will share his thoughts on the committee’s 2022 agenda and the critical issues facing the banking sector. McHenry, the ranking Republican on the House Financial Services Committee, will also offer his perspective on major banking policy issues and his outlook for action in the House in 2022 and beyond.

Summit attendees will hear from lawmakers and regulators, as 2022 promises to be a pivotal year for the banking industry—with new leaders now in place at major regulatory agencies, Congress eyeing the midterm elections and the nation's economic recovery still uncertain. All bankers and associate members are encouraged to attend the Washington Summit to learn about major policy issues in play and have their voices heard. Register now for this free event.

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Your Support Needed: Engage in Hot Topic Banking Issues in Pierre Next Week

Photo of State CapitolIssues of importance to the banking industry are surfacing at the South Dakota Legislature, and bankers are needed in Pierre next Wednesday, Feb. 9, to make sure that our industry's voice is heard. 

All bankers are encouraged to attend the SDBA State Legislature next Wednesday at the Ramkota Hotel & Conference Center. The day-long event will include an SDBA Legislative Committee meeting, lunch, SDBA update, featured speaker Keith Prather, Gov. Kristi Noem, and the chance to visit with state legislators at the State Capitol.

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Ag Secretary Discusses Farming and Rural Economy During House Hearing

Agriculture Secretary Tom Vilsack testified last Thursday before the U.S. House Agriculture Committee on the state of the rural economy. During the four-hour meeting, Vilsack discussed a wide range of topics, including supply chain issues, employment, exports, COVID-19 relief funding, demand and price increases, underserved rural communities, the needs of specific farming sectors and the reauthorization of the farm bill, which expires next year.

“Our farm income is as good as it has been in the last eight years. We’ve had record exports,” Vilsack said at the start of his testimony. As lawmakers begin their work on the farm bill, he urged them to focus on fixing a particular issue: the rural extraction economy. It is the “heart of the challenge” that rural farmers have faced for a long time, the secretary said.

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Make Your Voice Heard at SDBA State Legislative Day

Photo of Karl Adam and Brett KoeneckeSDBA President Karl Adam and SDBA Legal Counsel Brett Koenecke met with the SDBA Legislative Committee yesterday via Zoom to discuss legislation this session that could impact the banking industry and how, with a united approach, the SDBA intends to address these bills and initiatives going forward.

As part of that united approach, bankers should attend the SDBA State Legislative Day on Feb. 9 in Pierre. This daylong event is a great opportunity to stay up-to-date on state and federal legislation that could affect the banking industry, visit with state legislators and constitutional officers, and make sure our industry is heard.

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Long-Awaited Fed Paper Highlights Risks, Potential Benefits of a U.S. CBDC

The Federal Reserve last Thursday issued a highly-anticipated report assessing the potential benefits and risks of creating a U.S. central bank digital currency, or CBDC. The paper also requests public feedback on these topics and comments will be accepted until May 20. While the Fed took no official position on creating a CBDC, the agency said it “will continue to explore a wide range of design options,” adding that it “does not intend to proceed with the issuance of a CBDC without clear support from the executive branch and from Congress, ideally in the form of a specific authorizing law.”

The paper noted that a CBDC “would best serve the needs of the United States by being privacy-protected, intermediated, widely transferable and identity-verified.” Among the various CBDC structures the Fed is contemplating is an intermediated model through which the private sector would facilitate the management of CBDC holdings and payments through accounts or digital wallets. Such a model “would facilitate the use of the private sector’s existing privacy and identity-management frameworks; leverage the private sector’s ability to innovate; and reduce the prospects for destabilizing disruptions to the well-functioning U.S. financial system,” the Fed said.

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Biden Announces Three Key Fed Nominations

As expected, President Biden last Friday nominated Sarah Bloom Raskin to serve as vice chair for supervision at the Federal Reserve Board of Governors. Raskin—a former Maryland commissioner of financial regulation—previously served on the Fed board from 2010 to 2014, and also served as deputy secretary of the Treasury under President Obama.

President Biden also announced two additional Fed board nominees: economists Lisa Cook and Philip Jefferson. Cook is currently a professor at Michigan State University who previously served on the White House Council of Economic Advisers during the Obama administration. Jefferson is a professor and administrator at Davidson College in North Carolina and previously worked as a Fed economist.

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GAO Report Highlights Federal Response to Trafficking, Money Laundering

A recent report issued by the Government Accountability Office highlights the strategies and techniques used by criminal groups to engage in trafficking and money laundering, as well as efforts by the federal government to combat these illegal activities. The report was issued as required by the fiscal year 2021 National Defense Authorization Act.

The report describes how criminal groups move illicit goods and launder money across borders, using bulk cash smuggling, “funnel” accounts, gold and other high-value assets, and real-estate purchases, among other techniques. The report—which reflects input from ABA and several ABA members—also discusses how detailed case studies would help financial institutions’ ability to identify or report information useful for law enforcement investigations.

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ABA Invests in NYDIG to Support Banks Offering Crypto Services

As consumers increasingly look to banks to help them safely hold cryptocurrencies and other digital assets, ABA President and CEO Rob Nichols announced in an ABA Viewpoint blog post on Tuesday that the association has invested in NYDIG, a leading provider of bitcoin solutions for banks.

Nichols noted that the investment would help support banks’ ability to meet customer demand for crypto products and services, citing NYDIG’s compliance-first approach, focus on the community bank market and focus on supporting banks rather than competing with them.

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Scholarships Available for ABA Emerging Leaders Forum During Washington Summit

The ABA is offering each state banking association $750 scholarships for two emerging leaders to attend the ABA Emerging Leaders Forum and Washington Summit on March 7-9 in Washington D.C. The ABA Emerging Leaders Forum is an opportunity to share challenges and strategies with peers as you work to cultivate a strong, dynamic and diverse banking industry for the future.

The Emerging Leaders Forum will be held on March 7 in conjunction with the ABA Washington Summit. If you are interested in applying for one of the two scholarships, contact the SDBA's Halley Lee via email or 605.224.1653 by Feb. 11. Learn more about the Emerging Leaders Forum and Washington Summit.

U.S. Banks Form Consortium to Support Bank-Minted Stablecoin

Five FDIC-insured banks yesterday announced the launch of the USDF Consortium, a group that was formed with the goal of building a network of banks to facilitate the adoption of USDF, a bank-minted stablecoin. The consortium’s founding members include New York Community Bank, Denver-based NBH Bank, Nashville-based First Bank, Montebello, N.Y.,-headquartered Sterling National Bank and Columbus, Ga.,-based Synovus Bank, and the group said it intends to “significantly grow its membership of FDIC-insured banks through 2022 and beyond.” Figure Technologies and JAM Fintop are also founding members.

‌USDF will operate on the public Provenance Blockchain, will be minted exclusively by U.S. banks and will be redeemable on a one-to-one basis for cash from a consortium member bank.

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SDBA State Legislative Day Hotel Blocks Extended

Photo of State CapitolIf you have not yet reserved your hotel room for the SDBA's State Legislative Day on Feb. 9 in Pierre, the hotel blocks have been extended. The hotel block at the Ramkota Hotel & Conference Center has been extended to Friday, Jan. 14, and the hotel block at the ClubHouse Hotel & Suites has been extended to Tuesday, Jan. 18. 

Don’t miss out on this opportunity to connect with South Dakota’s lead decision makers at the SDBA State Legislative Day. Stay up-to-date on state and federal legislation that could affect the banking industry, visit with state leaders, legislators and constitutional officers and be the voice for the banking industry. 

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SDBA Conducting Annual Banks Make a Difference Survey

South Dakota Banks Make a Difference SurveyThe SDBA is calling on member banks to participate in its annual South Dakota Banks Make a Difference Survey, which provides a glimpse into how banks work every day to help South Dakotans grow and prosper. On Monday, the SDBA sent the survey link to all SDBA member bank CEOs and the person at each bank who completed last year's survey. 

The Association requests that banks supply basic data for calendar year 2021, or for the most recent 12-month period for which the bank has data available. The SDBA will present the findings during its State Legislative Day on Feb. 9.

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SDBA Prepares for 2022 South Dakota Legislature

Photo of State CapitolThe 2022 South Dakota Legislature opens on Tuesday, Jan. 11, in Pierre and is a 38-day session. The main run of the session ends on March 10, with March 28 reserved for consideration of gubernatorial vetoes. For the full legislative schedule, listing of bills, committee schedules and legislators’ contact information, visit the South Dakota Legislative Research Council’s website.

The SDBA Board of Directors and Legislative Committee met on Dec. 2, 2021, in Fort Pierre to discuss potential legislation that could be introduced during the 2022 South Dakota Legislature. Topics discussed included potential legislation dealing with the Second Amendment and banks restricting business with the firearms industry, cannabis, COVID-19 vaccination mandates, the state’s Appraiser Experience Training Program, provisions for virtual currency, IRS bank data collection, the state’s bank franchise tax, workforce housing, priority liens, long-term bank financing of manufactured homes and property assessed clean energy financing.

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Midwest Economic Forecast Forum to be Held on Jan. 4

The Midwest Economic Forecast Forum will be presented on Tuesday, Jan. 4, virtually by the Wisconsin Bankers Association, in partnership with the Illinois Bankers Association, Michigan Bankers Association, Minnesota Bankers Association, Montana Bankers Association and South Dakota Bankers Association. The forum will be held from 10:30 a.m. to noon CST.

Prepare for 2022 by joining an economic outlook with Minneapolis Fed President Neel Kashkari during this virtual event. Then listen to Dr. David Kohl, economist and professor emeritus with Virginia Tech, as he dives into the economic mega trends he expects in 2022 and beyond.

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