Editor's Note; On
Q Indiana bankers recently had two legislative victories. Can you tell me about those ? * We are blessed at IBA with an outstanding government relations team. We have three people who are exceptionally well connected at the State Capitol. This last year was extraordinary for the association. Our biggest victory was the financial institution tax reduction/
The bill reduced the state's financial institutions tax to 6.5 percent from 8.5 percent. The reduction will phase in over the next four years and will save banks and thrifts about
The bill also helps ensure
We didn't get all we wanted. IBA's bill requested the fund be moved out of the state treasury and placed in a separate notfor-profit corporation. It also added representatives of municipal deposits to the fund's board. These measures didn't make it through with the final bill.
Q. What will the association be working on in 2014?
I would like to lead the industry to involve younger people in the banking business. I am 52 years old and I was the third-youngest person in the room at IBA's strategic planning meeting.
This isn't just a need from the standpoint of industry leadership. It is hard to attract younger customers if you do not have a younger perspective on your staff. We need to get younger people in the bank to provide that perspective.
Another issue is that many banks have older management and no succession plan. This is a real risk for the industry because the only option for these banks is to stop operating independently. In our strategic planning, one thing we have considered to address these challenges is adding bankers from our future leaders division to our board by expanding the board. We also are considering creating a fund to provide scholarships to the graduate school of banking.
Another issue is that the banking industry is consolidating. That's a challenge for all states. As an association we have got to look at ways to secure and shore-up revenue sources as the bank population declines. We also need to make sure we provide the training and education platforms that bankers need and products that actually help banks perform better.
Q. How will your banking experience help you lead the association?
I have had a more unusual career track for a bank CEO. I graduated from
I think my tenure gives me a good sense of what has happened in banking. My time as CEO also helps me understand how important it is to be aware of what's happening around you.
Q. What challenges do you think most concern
I think we all have to look at our business models and figure out how we will drive growth in earnings. Interest rate risk and the interest rate cycle is something we all have to evaluate every day. That's the reason I look forward to meeting other bankers. My bank benefits from my engagement on a statewide level because I can learn how other banks handle things. Because of the challenges facing the industry, the need to be involved in this extraordinary association is greater than ever. *
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