Advocacy Will Shape the Future of Banking.

Amid regulatory upheaval, the steadfast advocacy of community bankers emerges as our most powerful tool for safeguarding the future.

by Mark Strother, KBA Chairman, 2024

Last week in Washington, I heard ABA President Rob Nichols echo a sentiment I’ve frequently heard from Ballard about the KBA: the key focus of the association is advocacy. At no time in my career has this advocacy been more crucial in both Frankfort and DC than it is today.

From our nation’s capital, proposed rulings are introduced almost weekly that, if enacted, could either adversely impact the way we serve our clients or directly reduce our earnings capacity. Rules supposedly intended for “too-bigto-fail” banks inevitably trickle down to the smallest institutions.

In Frankfort, bills often emerge from cookie-cutter language actively promoted nationwide, typically with a political slant or without considerable thought to the consequences of their implementation.

Leaders of community banks find themselves initially occupied with combating these proposals through comment letters, calls to legislators, and meetings with regulators. When these measures proceed despite our efforts, the need arises to review the rule changes, access educational resources to understand the requirements, and then dedicate time and resources to prepare and train for implementation. This shift in focus diverts valuable time from our clients and strategic planning for future profitability. We find ourselves addressing minor issues elevated solely by bureaucratic decisions, reducing the time we could spend on managing the real risks that daily threaten our banks’ stability and expose our industry to significant threats.

John, Ballard, and Tim excel in advocating for us both in Frankfort and DC.

In Frankfort, they have achieved considerable success in passing laws that strengthen the industry and in quashing harmful bills before they become law. In Washington, the divided government makes passing legislation nearly impossible, but an active bureaucracy still finds ways to complicate our jobs. Despite their experience, even skilled advocates like John, Ballard, and Tim can only achieve so much.

It is essential for us to lend our voices to give a Main Street perspective on the impacts of these regulatory decisions. Many of us maintain strong relationships with our state representatives and senators. We should leverage these connections to communicate our positions on specific issues and their effects on local constituents. Be assertive and prepared to counter any justifications they might offer. Our U.S. congressmen and senators may not know us as well, but an effort should be made to ensure they understand who we are and the regions we represent. Even if they don’t know us personally, they recognize the impact we have locally and are likely to listen.

Government advocacy is something we need to actively participate in, rather than delegate. The more involved we become on behalf of our banks, the more significant our impact on the legislative process will be. Ultimately, we should expect no one else to fight as hard for our banks as we do ourselves.