VACB Chairman 2015
John Caldwell
President, CEO
The Farmers Bank of Appomattox

Chairman's Letter

The Community Banker Magazine

Community Bankers School

OCC Appoints New Mutual Committee Members
Virginia Represented in Appointments

The Office of the Comptroller of the Currency appointed five new members to its Mutual Savings Association Advisory Committee, which is charged with assessing mutual savings associations and OCC regulations.

The five bankers appointed included, Susan Ralston of Bank @LANTEC in Virginia Beach, a VACB Member Bank. Congratulations Susan!

ICBA Bancard Announces Chip Card Conversion Fund
Nearly $600,000 set aside to Support Community Bank EMV Migration

ICBA Bancard, the nation's premier provider of payment-services exclusively for community banks, has pledged more than half a million dollars to support its Visa credit card issuers as they convert to offering their clients chip cards ahead of the October 2015 liability shift.

"On the heels of high-profile retailer data breaches, such as Target and Home Depot, it's evident that fraudsters are intent on exploiting system vulnerabilities to line their pockets," said Noah Wilcox, ICBA Bancard chairman and president and CEO of Grand Rapids State Bank in Grand Rapids, Minn. "ICBA Bancard's ongoing efforts to safeguard community bankers against fraud-first with their exclusive fraud loss protection program, and now this program to help offset chip card conversion costs- demonstrate ICBA Bancard's commitment to supporting its clients in the evolving payments market."

Chip card technology, a proven model for decreasing card-present fraudulent transactions in Europe, is expected to gain widespread adoption in the United States, with many issuers planning to distribute the enhanced plastics before the October 2015 liability shift.

"The underlying technology behind chip cards is not only an effective fraud deterrent, but could become a point of distinction among cardholders who travel abroad or are concerned about the security," said Linda Echard, president and CEO of ICBA Bancard. "By offering community banks fraud protection programs, ICBA Bancard is continuing to provide consumers with the peace of mind that their financial information is safe and secure at their local community bank."

De Novo News
Regulatory Costs Could Limit De Novo Formation, according to Richmond Fed

Most of the decline in the number of independent commercial banks in recent years is due to the unprecedented collapse in new bank entry, according to a Federal Reserve Bank of Richmond study. And regulatory costs could be responsible for the lack of new banks, the report found.

The study reported that the number of commercial banks shrank by 14 percent since 2007, with the rate of new-bank formation falling from approximately 100 per year since 1990 to just three per year since 2010. The increase in regulations might be responsible, according to the report.

ICBA has been deeply concerned about the lack of de novo bank applications and the FDIC capital and business plan requirements for de novo bank applicants. In response to ICBA's recommendations, the FDIC in November issued guidance to help applicants develop proposals for deposit insurance and to provide tranparency to the application process. Read the Richmond Fed Report

It's Not Too Late
Register for Security & BSA/AML Risk Management Seminars

VACB and Profit Protection have partnered offer two, one-day risk management seminars. On Wednesday, March 25, join us for a full day of Security training. On Thursday, March 26 we will offer a full-day of BSA/AML Risk Management training. Both sessions MEET or EXCEED examiner expectations. Click the calendar tab to learn more about these timely programs!

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