Final Words from the 2006-2007 IBA Chairman
I have so enjoyed being your chairman. Thank you for allowing me this honor. A great deal has happened in the past 12 months. To close my year as Chairman I would like to review ways in which your Association has been working to enhance your standing in this rapidly changing environment.
Effective advocacy remains the number one reason banks belong to the IBA.
At the state capitol this year, many new faces created lots of new challenges for the IBA. Thanks to a core group of policymakers in both parties who understand the importance of a healthy business climate to economic growth, the end result was a good one. But, at times, it wasn’t easy. This past year, our lobbying team of bankers and staff has:
Passed, a bill tightening restrictions on activities of commercially-owned Industrial Loan Companies in Iowa.
Prevented credit union efforts to expand their authorities.
Protected the interests of our members relative to the Attorney General’s proposals to allow consumers the right to sue under the consumer fraud statute, and
And, we were successful in preventing the Legislature from gutting Iowa’s “right to work” law and passing numerous bills to increase employer liability under workers compensation claims.
These were just a few of the issues we dealt with at the state level and we expect to deal with many more this coming session.
Although the problems currently being experienced in the mortgage market did not originate in the commercial banking sector - most consumers, and even policy makers, don’t make the distinction between non-bank lenders and us.
This presents the industry with both a challenge and an opportunity.
The IBA has launched a consumer education campaign to help correct this misunderstanding and show that in many instances, the banking industry is the solution. Visit our new consumer website, www.mysmartfinances.com for more information.
When it comes to the federal legislative environment, Iowa bankers contributed to a major victory in late July. That was when the U.S. House of Representatives passed an amendment to strip the 2007 farm bill of provisions enabling the Farm Credit System’s expansion into non-farm lending. Thanks to your hundreds of emails, calls, and letters, the Iowa Congressional delegation unanimously supported our position.
The Iowa delegation also supported the House bill to prevent commercial ownership of industrial loan companies. Congressmen Latham, Boswell, Braley, and Loebsack were all co-sponsors on the bill which passed the House by an overwhelming majority. The Senate has yet to take up the ILC bill, but Senator Harkin has also signed on as a co-sponsor.
Without Congressman Leach’s presence in Washington, our representatives put an even greater reliance on the IBA and you for information and direction on financial issues. We need to communicate what sets community banks apart. In a recent Wall Street Journal article, a Midwestern banker was asked why he would recommend a financial practice that could reduce short-term bank earnings. He responded: “I see my customers at church, at school, and at the local grocery store. I have to look out for their interests.” I believe this philosophy is not only what’s best for our customers, it’s what’s best for our bank and our communities. And, during this time of uncertainty in the credit markets, it is our biggest competitive advantage.
I’ve had a great year as your IBA Chairman. It has been an honor working with bankers across the state and the nation to further our industry. Although it requires a substantial commitment of time, I wouldn’t have missed a minute of it.
Editor’s Note: The proceeding was an excerpt from the speech Dan gave during the opening session of the 2007 Annual IBA Convention. Read Dan’s speech in its entirety online at www.iowabankers.com.
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