Pub. 12 2015 Issue 2

O V E R A C E N T U R Y : B U I L D I N G B E T T E R B A N K S - H E L P I N G N E W M E X I C O R E A L I Z E D R E A M S Summer • 2015 11 with an emphasis on how the rules affected their customers, bankers did not disappoint. A bank in New Mexico has stopped offering mobile home secured loans, because its customers would not observe the homeownership counseling requirement. An Idaho banker re- ported the frustration of agricultural customers who are being told they must purchase flood insurance on low-value sheds and barns located on their property. A Colorado banker noted how his bank worked with a recently retired engineer with sub- stantial liquidity and a generous, albeit time-limited pension. A good credit risk yet, thanks to overly prescriptive rules, the man had to ask his 75-year-old father to cosign the loan. These are powerful stories. In fact, most stories are powerful. That’s because, despite the tremendous advancements in com- munications technologies, storytelling remains the most effec- tive way to make a point. Members of Congress believe it, too. In fact, three VIPs speaking at ABA’s Government Relations Summit in March- Rep. Jeb Hensarling (R-Texas), who chairs the House Financial Services Committee, Sen. Sherrod Brown (D-Ohio), ranking member of the Senate Banking Committee, and Rep. Kevin Mc- Carthy (R-Calif), who holds the second most powerful post in the House-all advised bankers seeking regulatory relief to “tell their stories” to their lawmakers. Hensarling and McCarthy also stressed the importance of talking with members of both parties. The legislative solutions we seek require bipartisan support to be enacted. Rather than telling your story to an official who already knows you and ap- preciates what you do, tell it to the freshman representative or to the legislator who fears one or two practical legislative fixes could lead to the unraveling of the Dodd-Frank Act. Our first instinct when asked to talk about our industry’s reg- ulatory burden might be to talk about how much time and mon- ey compliance is costing banks. That’s a legitimate grievance that reveals an essential economic truth: Money spent on pa- perwork is money that can’t be spent in loans that bring growth and prosperity. But dry economic arguments don’t pack nearly as much punch as stories about how a customer couldn’t buy a home or expand her business. Analogies help, too. I have tried to explain banks’ regulatory burden to reporters by telling them if restaurants had to expend as much human and financial resources on com- pliance as banks do, the food you eat wouldn’t taste very good. Colorful analogies and anecdote resonate more than plain facts. Narratives are more memorable than Powerpoint slides. If you’ve heard me speak, you know that I believe this. I practice what this column is preaching. If you want to see meaningful regulatory relief-or a level playing field with credit unions and the Farm Credit System, or more accountability for retailers in- volved in data breaches-share your stories with you lawmakers when you write or meet with them. Communicating effectively and memorably about our policy priorities will help us achieve them.  Offices in: Albuquerque, Santa Fe and Las Cruces Contact : John Attwood Vice President, Business Development 1-800-996-9000 www.ziatrust.com Zia Trust, Inc. The Advisors’ Trust Company sm The bank investment advisor manages the investment assets, Zia Trust manages the trust administration. Does your bank offer trust services? If not, we’re your solution. 10 Trust Officers committed to providing the highest quality fiduciary service. We provide local trust administration. “New Mexico’s Premier Trust Company”