ICBA is dispelling myths about the proposed Basel III regulatory capital standards on a webpage dedicated exclusively to the proposed rules. The latest myth is that the Basel III proposal has a long phase-in period, so community banks will have plenty of time to prepare. In fact, the phase-in period for certain provisions does not account for the many headwinds that will hamper the ability of community banks to meet the minimum regulatory capital requirements.

ICBA is urging community bankers and industry allies to sign a petition calling on regulators to exempt community banks from proposed Basel III capital rules and allow community banks to continue operating under Basel I capital regulations. More information on the Basel III capital standards is available on ICBA’s comprehensive webpage. Sign the Petition Today. Learn More.

The credit unions’ federal regulator has accomplished by administrative fiat what Congress has not done, ICBA Chairman Jeff Gerhart wrote in an American Banker op-ed. The National Credit Union Administration’s designation of more than 1,000 credit unions as low-income flouts statutory limitations on the credit unions’ tax-exempt charter, Gerhart wrote.

“With the NCUA’s sweeping expansion of MBL authority, which is sure to harm community banks and significantly increase risk to the National Credit Union Share Insurance Fund, why is MBL legislation needed at all?” Gerhart wrote.

ICBA and other financial services trade associations met with Consumer Financial Protection Bureau officials to discuss concerns with the bureau’s proposed ability-to-repay/qualified mortgage rulemaking. The meeting was held by the CFPB to get feedback and comments on the effect the rulemaking could have on smaller lenders.

ICBA said that community banks should receive a safe harbor protection with clear standards for loans that are considered “qualified mortgages” and that balloon mortgage loans held in portfolio by community banks be protected under this safe harbor. The association expressed concerns that the rules would force many community banks to curtail mortgage lending. CFPB officials said they would consider all of the comments received in the meeting.

The CFPB is expected to finalize the ability-to-repay/qualified mortgage rulemaking in December 2012.

Following ICBA outreach, the Financial Accounting Standards Board recently decided that nonpublic entities will not have to disclose fair value amounts for financial assets and financial liabilities measured at amortized cost. FASB reached the decision at its Aug. 9 board meeting.

ICBA met with FASB in December to advocate a community bank exemption. At the meeting, ICBA staff and community bankers said that fair value disclosures for loans held at amortized cost would burden community banks because the required inputs to the fair value calculation would require them to identify exit markets that do not and may never exist. The association noted that community banks would face steep costs in applying valuation techniques as new employees, valuation systems, and consultants would need to produce the required disclosures in a timely manner.

FASB said that it will discuss at future meetings other disclosures required of nonpublic entities.

The Patent and Trademark Office announced that it will publish final rules today to implement provisions of the Leahy-Smith America Invents Act. The PTO said the final rules will offer third parties a timely, cost-effective alternative to district court litigation for challenging the patentability of a claimed invention in an issued patent. They will take effect on Sept. 16. The America Invents Act includes an ICBA-supported provision to establish a transitional program at the PTO to review business-method patents to minimize unnecessary patent litigation.

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