Department News GOVERNMENTAL RELATIONS
Bankers Voice Concerns to Missouri Congressional Delegation By Emily Lewis, Grassroots & Bank PAC Coordinator
Missouri bankers have a great story to tell, and we always appreciate the opportunity to share it with our members of Congress and U.S. senators.
Recent statistics show Missouri banks employ more than 50,000 people and lend nearly $21 billion to small businesses, farmers and new homeowners. In the last year, more than $4 billion of Paycheck Protection Program loans and more than three million Economic Impact Payments were processed by banks across the state. We are proud of the work being done to support our communities and the economy.
Going forward, there is work to be done in Congress to address issues of fairness and new threats to the banking industry brought on by technology and our shiſting economy. We discussed the following issues and more with our lawmakers. Te ECORA Act (see Page 4 for details) would level the playing field for banks competing against Farm Credit Services. Increased congressional and regulatory oversight of credit unions also is desperately needed to address fairness. Credit unions continue to flout their mission and take advantage of their tax status, with no consequences. Te purchase of banks by credit unions nationwide illustrates the need for a thorough examination of credit union practices.
Data breaches are a daily threat across all sectors, and state legislatures are creating a patchwork of laws in their attempts to protect private information and punish criminals. Tis has imposed different standards from state to state and creates a significant compliance burden. A national standard is needed, one that recognizes the current requirements for financial institutions under federal law and ensures all entities handling sensitive data are held to the same high standards.
As the number of state-licensed marijuana-related businesses 8
mobankers.com
increases, the need for a resolution to cannabis banking becomes more pressing. Only Congress can fix the conflict between state and federal law. Te SAFE Banking Act would allow Missouri banks to serve MRBs and specify that handling their proceeds does not violate federal law. It also would require clear guidance from federal regulators on the appropriate treatment of all cannabis-related accounts.
With the new presidential administration comes concerns that Operation Choke Point-style regulation will be reinstated. Bank regulation should not be used to support or punish other industries. Te ability of banks to determine who they do or do not serve based on sound business practices should be preserved, not used to advance the partisan agendas of those in power.
Some in Congress have re-introduced a plan for “postal banking” under the misguided theory that the U.S. Postal Service is better equipped to provide financial services than the thousands of financial institutions across the country. Although finding ways to serve the unbanked is something we all need to address, postal banking is not the solution. Te government should not be in the business of competing with private industries.
We look forward to working with our representatives in Washington, D.C., to advance policies that support a healthy economy and level playing field among financial institutions, and we eagerly await the opportunity to meet with them face- to-face in the future.
Te 2021 regular session of the Missouri General Assembly ended Friday, May 14. A complete list of legislation affecting financial institutions is posted on
mobankers.com for your review. We appreciate the work of our Legislative Affairs Committee and the advocacy of our Target Bankers this year and look forward to resuming visits to the Missouri Capitol in 2022.
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