Week of May 1

May 1, 2017

From the chairman

By Curtis Davidson
OBA Chairman

Chambers of Commence are one of our strongest allies. Be it local or national, chambers and banks have the same goal: to support economic growth, job creation and entrepreneurship.

Last week, I watched a webcast from the U.S. Chamber of Commerce Capital Markets Summit titled “Kickstarting Growth: The Small Business Story.” I was interested because it featured Dorothy Savarese, chairman of the American Bankers Association. She is also chairman, president and CEO of Cape Cod Five Cents Savings Bank, a community bank in Massachusetts. The panel also included small business owners, an OnDeck executive and chamber research experts.

Two themes were apparent throughout the panel discussion. First, financial institutions – and, in particular, community banks – are an indispensable source of capital for small business through lending. Second, Dodd Frank has tightened access to credit, especially for the smallest businesses.

The entrepreneurs on the panel recognize what all of us know: Over-regulation has a true disparate impact on smaller businesses. They stated over-regulation takes away a banker’s best attribute: his or her common sense. These business owners understand that one’s character is the biggest “C” in the lending equation, and overregulation reduces a banker’s ability to rely on common sense when evaluating a borrower’s character.

Dorothy did an excellent job discussing this point. She correctly stated that regulators make it more difficult to work with business generally because regulators want to eliminate as much risk as possible. As Dorothy pointed out, risk is a synonym for opportunity. Bankers are experts at balancing risk and opportunity for the benefit of the bank and customer.

Common sense was an oft-repeated term. Small businesses don’t want the government to tell the banker who he or she can bank. They just want fair treatment, as well as a banker who can judge their character and provide valuable advice. In other words, a banker with common sense.

Dorothy is a great leader for our profession. Come to our Annual Meeting and Convention May 22-24 at the Embassy Suites in Norman and judge for yourself. We are delighted that Dorothy is one of our featured speakers in an outstanding lineup.

See you there

Have a great week!

Curtis Davidson
OBA Chairman

CHOICE Act to be marked up Tuesday

The Financial CHOICE Act of 2017, otherwise known as H.R. 10, is scheduled for a mark-up by the House Financial Services Committee Tuesday morning, beginning at 10 a.m.

“Based on what I’ve been told, the many issues the bill encompasses are pretty fluid at this point,” OBA President and CEO Roger Beverage said. “One of the things that may happen, I’m told, is a Republican member of the Committee might offer an amendment that would strip the Durbin repeal language from the bill. The Durbin amendment impacts every bank in the country.”

Beverage noted the ABA has asked Oklahoma bankers to make the following points when talking to Rep. Frank Lucas’ office (202-225-5565). Lucas is on the House Financial Services Committee and is the only member of the Oklahoma delegation that is on it.

Here are the points to make:

Durbin was a bait and switch. Members of Congress and consumers were promised savings at the register that have not materialized, while the big box retailers pocketed $8 billion per year.
Durbin fails economics 101. Price caps may create a windfall for a few, but consumers end up paying the bill. Because of Durbin, low-income Americans have access to fewer banking products and services.
Durbin is just plain wrong. How would a retailer feel about the government setting the price of soda, or beef or flat screen televisions? The market for card acceptance is no different and should not be subject to arbitrary interventions.

ABA is asking bankers across the country to reinforce the importance of repealing the Durbin amendment and urge them to VOTE NO on any amendment to strike the repeal provision from the CHOICE Act OR any proposed compromise to benefit retailers.

Oklahoma’s Jill Castilla among ICBA attendees to meet with POTUS

Edmond’s Jill Castilla, president and CEO of Citizens Bank in Edmond, was among the 100 delegates attending the ICBA’s Spring GR Summit who had the opportunity to meet with President Trump and Vice President Pence this morning.

“Jill is a remarkable person and I loved the picture she tweeted from the meeting itself,” OBA President and CEO Roger Beverage said. “She was a great OBA board member and I am confident her service to the industry is far from over.”

Here is the picture Jill took and posted on Twitter: