Independent Banker - October 2018 - 46

policymakers and staff for discussions on the most
pressing community banking policy issues.
Mission creep
While ICBA works to enact pro-community bank policies, it
also continues to stand firmly against the mission creep of
tax-exempt credit unions and the Farm Credit System. And
Washington is finally starting to notice.
Senate finance chairman Orrin Hatch (R-Utah) has
expressed concern that credit unions are operating beyond
their tax-exempt purpose and called for large credit unions
to report the financial information required of other taxexempt
institutions. Meanwhile, a federal court ruling
(now on appeal) in an ICBA-supported suit vacated two
provisions of the National Credit Union Administration's
October 2016 field-of-membership rule. ICBA has taken
advantage with a series of messages to Congress showing
how the credit union industry's evolution has put its tax
exemption at risk and why lawmakers should re-examine
the outmoded subsidy.
Meanwhile, ICBA has used the farm bill debate to
continue to expose how Farm Credit System is abusing
its tax-advantaged status. As ICBA has stood in the
way of any amendments to expand FCS powers, its
Focus on Farm Policy white paper notes that the
FCS has experienced dramatic growth while sharply
What's next for S.2155?
The hard-fought Economic Growth, Regulatory Relief, and Consumer
Protection Act must be fully implemented before it can help community
banks unleash their economic potential. In fact, ICBA is still working with
policymakers to ensure the tax reforms signed into law back in December
2017 are correctly enacted.
While writing new regulations is never easy, ICBA has called on regulators to issue
S.2155 regulations as swiftly as possible. Many provisions can be quickly enacted by simply
revising existing rules, such as those offering " qualified mortgage " relief, implementing
Volcker Rule and escrow exemptions, and expanding access
to the 18-month exam cycle.
Others will take more time, such as capital simplification,
new risk weights on high-volatility commercial real estate
and providing for a short-form call report. For these, ICBA
has asked for speedy proposals that give community bankers
enough time to fully review and comment.
Meanwhile, the Tax Cuts and Jobs Act remains unfinished
business in Washington. ICBA is working to ensure the
Treasury Department's regulation implementing a 20
percent tax deduction for pass-through businesses includes
all activities of Subchapter S banks. ICBA has repeatedly
said that Section 1202 of the act makes clear that Sub S
banks qualify, and the association was assured of this by
policymakers while the law was being crafted.
ICBA has called
on regulators
to issue s.2155
regulations
as swiftly
as possible.
How you can help: Community bankers can stay posted on how these policies are being
implemented using up-to-date compliance information via Community Banker University's
educational (icba.org/education) webinars and seminars.
46 Q ICBA Independent Banker Q October 2018

http://www.icba.org/education

Independent Banker - October 2018

Table of Contents for the Digital Edition of Independent Banker - October 2018