It is always a pleasure to correspond with my colleagues in the NMBA; however, I wish circumstances were different. I know we will all miss Lonnie Talbert, our previous NMBA President, who recently relocated to the beautiful state of Florida. He is a personal friend, and I am looking forward to our continued engagement across the country through the American Bankers Association, where we serve on a committee together. As a previous NMBA President and current board member, it was a no-brainer to help fill in for the open timeframe and interim to assist our banking organization. Our NMBA leadership and members are stronger than ever, and I will go into these next few months building on Lonnie’s platform with all of your guidance. We have a tremendous ability to affect positive change, and promote and protect our great industry!
As we move through COVID, it appears it will be with us in some form no matter where we go and touch all of us in some way, but hopefully, the worst is behind us. While there are many negative and devastating aspects of COVID, there have also been some positives. We have all been forced to think outside the box. The way we conduct business with meetings, travel, time in and out of the office, defining a new office space, and enhanced technology are just some of the elements of daily life that have and will continue to change. While I am always an advocate of in-person meetings, time and cost can be managed more efficiently with virtual meetings, all with new technology.
On the banking front today, there are so many critical issues at hand. A few about which we need to contact our congressional delegation are:
First, close to home, there is the issue of cannabis banking. Agree or disagree, it is legal, both medically and recreationally, in New Mexico, and we must clear a way to take the cash off the streets legally. We must get the SAFE Banking Act passed through both houses of Congress. The House has passed the bill three times, but the Senate has yet to take a vote.
Second, there is a big push to eliminate overdraft charges. According to an ABA poll, 89% of Americans find their bank’s overdraft protection valuable. It is easy to legislate from Washington D.C. until you get on the front lines in grassroots America. Folks can opt-in or opt-out of overdrafts as it is, and I think the majority of New Mexicans find it a net value to have their overdrawn checks paid.
Third, there is the seemingly never-ending issue of credit unions not paying taxes while providing the exact same service as banks. It is imperative to continue to push for them to be taxed. Then, there is Section 1071 of the small business data collection. Under Section 1071, we will have to collect and report small business data, in which we are supervised, versus non-banks collecting data with no federal supervision.
Last, there is the ECORA farm bill. It’s not a bank bill explicitly, but a measure to lower the cost of financing farm and ranch real estate for the folks feeding our country. This is important, not only to help banks compete with Farm Credit Unions, but to allow loans to be completed and relationships maintained in rural America where they originate.
If you know me, then you know I am passionate about the viability of New Mexico, my home state, as well as my community and the banking industry. We can’t have too many friends in and out of our state and industry, including those on both sides of the political aisle. It is important to remember that politicians and industry leaders of all political leanings shape and influence our state and industry. I encourage all of you to support NMBA Bank Pac now more than ever. The resources we raise help our industry promote and protect the important business we do in helping our customers and state move forward. Also, I urge you to stay involved locally, statewide and nationally, as there is always a place for bankers to make a difference. We help people, and we help businesses, and, in turn, we make a positive difference!
I will close on a political subject about which we are connected directly and indirectly throughout our great state: New Mexico’s booming oil and gas industry. A few facts: we are the #2 largest producer of oil in the entire country. Also, the oil and gas industry supply over 30% of our state’s annual budget and hundreds of millions of dollars more in capital outlay for every community in the state. And the production and development of oil and gas in New Mexico are cleaner than in any other developing area in the world. There is room for alternative energy, and we should promote solar, wind and others, but not at the expense of the greatest asset we have in oil and gas. We can promote increased tax incentives for solar and wind and grow alternative energy sources while working hand in hand with oil and gas versus penalizing the industry, which makes a positive difference in every New Mexican’s life.
Stay safe, and I look forward to working with each one of you in protecting and promoting our financial industry and banking in New Mexico. It’s an important role we play.
