The Center for Financial Policy
partners with the Maryland Bankers Association
to present a panel discussion at the Maryland Banking School
On August 4, 2011, the Center for Financial Policy and the Maryland Bankers
Association partnered to present a panel discussion at the Maryland Banking
School, a week-long program geared towards providing community bank managers
leadership development, managerial and technical skills, and a resource network
to enhance their performance to thrive in the evolving financial services
marketplace. The panel, moderated by Richard Brown , Chief Economist and
Associate Director of FDIC’s Risk Analysis branch, provided insight about the
implications of the Dodd-Frank Act and regulatory requirements on community
banks.
Smith School Tyser Teaching Fellow and Executive-in-Residence Cliff Rossi
discussed his outlook for the housing markets and implications for bankers. In
this discussion, he spoke about key drivers to watch, credit availability, home
price trends, oversupply, GSE reform, and macroeconomic issues. He also provided
some insight on the rule on credit risk retention and Qualified Residential
Mortgage (QRM) provisions. In addition, he emphasized the need for a coordinated
housing policy.
Ethan Cohen-Cole, Assistant Professor of Finance at the Smith School of
Business, spoke to the bankers about the Consumer Financial Protection Bureau
(CFPB). He addressed several issues of interest to community banks including
legal risks, enforcement, and information burdens stemming from the Dodd-Frank
Act.
Mark Kaufman, Commissioner of Financial Regulation for State of Maryland,
spoke from a regulator’s perspective about the issues facing community banks.
These issues include interchange, Municipal Advisor Registration, loan
originator compensation rules, and QRM rules. According to him, the biggest
issue moving forward will be the ability for community banks to gain access to
capital to achieve long-term success.
All panelists also spent time addressing questions from the audience about
various topics including municipal deposits, Too Big To Fail, GSEs, free market
prices, and the effect of the Dodd-Frank Act on financial product innovation. At
the session’s conclusion, Rich Brown also shared his outlook for the industry
and the future of the FDIC.
Presentation Slides:
