On behalf of the Subchapter S Bank Association we have sent a letter to Chair Yellen, Comptroller Curry and Chairman Gruenberg expressing our continued concern regarding the unequal treatment depository institutions and their holding companies that elect to be taxed under Subchapter S of the Internal Revenue Code (IRC) receive compared to their peers taxed under Subchapter C, especially when considered in the context of the capital conservation buffer rules presently contained in Basel III and regulatory dividend restriction policy.
Archives for March 2014
American farmers and the banks that serve them have seen good years. Unfortunately, there are signs that the good times may be coming to an end.
With commodity prices expected to fall, many agricultural lenders anticipate their clients could have trouble making loan payments this year and Farm banks are bracing for a tough year ahead — and hoping that it’s no more than a one-year dip.
Net farm income across the country is expected to drop 26% this year, to about $96 billion, according toprojections from the USDA. The projections are based on laregely on falling crop prices, particularly corn, wheat and soybeans — three cornerstone crops in the national economy that the USDA predicts will fall back close to their 2010 prices.
A study was recently published by The Mercatus Center at George Mason University on the effects of Dodd-Frank on small banks, defined as banks with less than $10 billion in assets each serving mostly rural and small metropolitan areas. The 96 question, web based survey relied on responses from about 200 banks across 41 states and was conducted between July 2013 and September 2013. A large majority (65.6%) of respondents viewed Dodd-Frank as more burdensome than the Bank Secrecy Act, and the participating banks reported substantially increased compliance costs in the wake of new regulations.