Independent Banker - September 2021 - 57

Climate-related risk
Climate change is " on the front burner, " says
Cole. The Treasury Department now has a climate
czar, John Morton, who is overseeing climaterelated
policy work connected to climate transition finance,
climate-related economic and tax policy, and climate-related
financial risks. The Securities and Exchange Commission
(SEC) is also considering mandatory disclosures on climate
risk for publicly held companies.
" One might understand the justification for very large,
publicly held companies having to disclose climate risks
to their shareholders, but when you're talking about small
banks, the justifications become less substantive, less
legitimate, " Cole says. " The regulators are now looking at
whether every bank has to make such disclosures. Then they
need to figure out how to come up with a set of disclosures
that would actually address the risks that banks are taking. "
Why community
bankers are the best
grassroots messengers
While ICBA staff work diligently
with regulators and lawmakers
on behalf of member banks,
direct grassroots advocacy from
community bankers is key to
moving the needle.
" It's a symbiotic relationship, "
Cryptocurrency guidance
The OCC is collaborating with the Federal Reserve
and the FDIC to create a " regulatory perimeter "
that clearly outlines how banks can navigate
cryptocurrency and other emerging digital assets, says
Brian Laverdure, ICBA's vice president of payments and
technology policy. There has also been a push by some
lawmakers to pursue new legislation addressing ongoing
concerns about the lack of clarity around
cryptocurrencies and other digital assets.
" There are now thousands of digital
coins and tokens in existence, and it is
important to recognize that they have
different characteristics and functions, "
Laverdure says. " The regulation of
digital assets cannot be handled by one
agency alone. It will require cooperation
and collaboration across multiple regulatory
bodies to develop a comprehensive approach. " With more
clarity, more community banks may be able to address
customer needs for crypto-related services, he adds.
says Paul Merski, group executive
vice president of congressional
relations and strategy at ICBA.
" It's crucial that the nationwide
grassroots constituency has
contact with the lawmakers who
represent them and to weigh in on
how issues impact banks, as well
as bank customers, to make sure
our issues advance. "
Community bankers have
intimate knowledge of their local
economy, so their opinions " carry
considerable clout with members
of Congress, " says Aaron Stetter,
ICBA's executive vice president of
policy and political operations.
That's why community banks
are ICBA's " very best messengers, "
says Brian Cooney, senior
vice president of legislative
counsel. " They can speak from
a first-person experience about
how legislative proposals in
Washington will positively impact
their customers or negatively
impact banks' ability to serve
their customers. We encourage all
community bankers to be active
from a grassroots standpoint. "
Members can learn more about
how to best make an impact
locally at ICBA's grassroots action
center (icba.org/beheard).
" When ICBA needs a call to
action for community bankers to
contact members of Congress, "
Cooney says, " please answer
that call. "
independentbanker.org Q 57
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Independent Banker - September 2021

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