Simply Stated - All Things Finance - Conference of State Bank Supervisors (CSBS)

Latest Episodes:

#13 - Reengineering Nonbank Supervision Nov 07, 2019

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As nonbanks have grown their market footprint, regulators are looking at ways to modernize the regulatory approach to these entities. At CSBS, we refer to these efforts as "reengineering nonbank supervision."

#12 - Margaret Liu - Update on Fintech Regulation Sep 26, 2019

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Fintech continues to be a hot-button issue for regulators, industry and policymakers. All of us want to know what the future holds, but few of us really know the answers. What we do know is that technology is powering more financial transactions, enabling new business models, and even propelling new regulatory initiatives. So this is a good time to check in with state regulators and get their perspective. And that is the purpose of this version of Simply Stated.

#11 - Taking the Pulse of our Economy Using Community Bank Sentiment Sep 19, 2019

Show notes

Economists, investors, policymakers, and reporters use all sorts of different “indicators” as guideposts to assessing the health of the economy. Some are purely informational and numeric, like job growth numbers and changes in GDP. But others are based on feeling, like consumer sentiment. They’re basically asking someone “how’s it going?” and compiling all those feelings into a single indicator.Getting a comprehensive picture across the country can be tough. But, there is one group that is connected to consumers and businesses alike that could provide us this valuable information. community bankers are some of the most connected individuals in a wide cross-section of society, whose very livelihood relies on the success of neighbors and local businesses – rural, urban and in between. Today, I want to talk to someone who has examined, worked with, and promoted research on these community bankers. And I want to discuss a new economic guidepost six years in the making, designed to use community bankers nationwide to take the pulse of America’s economy. It’s called The Community Bank Sentiment Index.

#10 - Greg Gonzales - State Regulations, Partnerships, and Tennessee Sep 12, 2019

Show notes

Welcome to Simply Stated, a podcast by CSBS, the Conference of State Bank Supervisors. I am Matt Longacre.My guest today is Greg Gonzales. He is commissioner of the Tennessee Department of Financial Institutions. Like many other state regulators, the department oversees banks, credit unions, trust companies, and a variety of nonbanks. Because of this diversity, Greg says, “Our small department touches every community in the state of Tennessee.” And that comes in handy as the department looks to support the strategic plan of his new Governor, with an emphasis on assisting rural communities across the state. The regulatory approach relies on balancing two important parts of its mandate — “ensuring safety and soundness and being mindful of economic development” — while tailoring regulations to the risks presented by individual institutions, depository and non-depository alike. To Greg, that’s the best way to enable financial institutions to deliver benefits to the citizens of Tennessee. “We want to help institutions not just survive but thrive.” In our interview, Greg elaborates on his regulatory approach. He recounts how companies have thanked the department for flagging risk issues to make those companies stronger entities. He describes a large increase in assets managed by state-chartered banks — from about $40 billion a few years ago to $120 billion and more in the near future — and what conditions have led to this growth.He also speaks to his role as chairman of the State Liaison Committee of the FFIEC and the critical role that organization performs. In particular, he appreciates how federal officials have supported state efforts to assist smaller institutions on issues such as exam modernization, and how CSBS provides important staff support. And, finally, he speaks to how regulators need to do their jobs — both with industry and with consumers — to enable financial services to be delivered in a safe, sound and reliable manner. As he summarizes, “It’s all about public confidence.”A lifelong Tennessean, Greg speaks with enormous pride in the work of his department, everyone he works with outside the department, and his hopes for a better future for all those in the state. Conducting this interview is Jim Kurtzke, who recently spent the day with Greg and his staff in their offices in Nashville. Let’s go to the interview.

#9 - The Battle for Liquidity – Brokered Deposits and Prompt Corrective Action Sep 02, 2019

Show notes

Banks want your deposits. They want you to deposit your paychecks, they want your employer to deposit their assets with them. They want you to choose to keep your money with them rather than put that money into other places.And there’s all sorts of reasons for that. It means they can issue more loans and grow more quickly. And, importantly for regulators, it helps the bank stay on a stronger financial footing.But deposits aren’t always easy to come by. In a strong economy, banks are competing for a limited pool of assets that could end up going to other institutions, into investments, or to other regions. This can be especially challenging for rural communities. And, in an economic downturn, as some loans become losses, banks fight even harder for these deposits that will keep them financially sound.Today, I wanted to talk to the experts about two things regulators are talking about constantly right now but probably haven’t come up at your kitchen table over dinner. The first is how regulators should handle a sometimes-risky type of deposit known as brokered deposits. Why are they risky? If a bank isn’t well-capitalized, should they be cut off from seeking brokered deposits? What’s the logic behind blocking a source of liquidity for a bank that desperately needs it?And second, I want to talk about the issue of a bank being undercapitalized more broadly, and what happens when regulators put a bank in what is known as Prompt Corrective Action. We covered this a lot in an earlier podcast on leverage ratios, so it might be worth listening to that first if you need some warming up. My question today is: How do regulators make sure they are catching the warning signs of a struggling bank and intervene in a way that’s beneficial for the bank, consumers, and the federal deposit insurance fund? It’s a question that regulators still grapple with today. In fact, just last week the federal agencies proposed a new rule adjusting their approach to this very question.

#8 - Joe Face Aug 15, 2019

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#8 - Joe Face by Conference of State Bank Supervisors (CSBS)

#7 - Tom Fite - How to Supervise in a World of Cyber Threats Jul 11, 2019

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Today we talk to Tom Fite, Director of the Indiana Department of Financial Institutions, about how his agency built out their examination skills in cybersecurity supervision.

#6 - Bill Matthews on Technology Jun 26, 2019

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Today we interview Bill Matthews, who leads the nation's licensing system for nonbanks.

#5 - Charlie Clark Jun 20, 2019

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We speak to the Director of Washington Department of Financial Institutions about an initiative to streamline the nonbank licensing process.

#4 - Bret Afdahl Jun 11, 2019

Show notes

Being chairman of CSBS is no easy job. You have to lead the design and implementation of a strategic plan...represent state regulators in relationships with their federal counterparts...all while managing the regulatory department in your own state. In other words, not for the mean and mild. This is Simply Stated, a podcast by CSBS, the Conference of State Bank Supervisors.For the year ahead, into the role of chairman steps Bret Afdahl, director of the division of banking in South Dakota. We recently talked onsite at the CSBS annual meeting in San Antonio, just following his speech on what he plans for the year ahead. So let’s give a listen.

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