Q & A: Community banking keeps Gibbon's interest

Vermont Business Magazine, Mar 01, 1998

VBM: What do you hope to accomplish?

GIBBONS: One thing is to make sure banks are allowed to stay competitive in the banking and finance environment. Certain entities have found loopholes through the unitary thrift holding company charter, which allows them to sell insurance, write mortgage loans, sell annuities, sell auto insurance, and take deposits.

Bank charters have been loosening up in the last few years. However, we want to make sure we get a good competitive playing field. Many of our 300 competitors aren't as heavily regulated as we are.

Another goal is to work with our counterparts in Maine and New Hampshire to save money. An example is training programs, where we have worked very closely with the Maine Bankers Association and the New Hampshire Bankers Association. We're studying other things, such as combining our group health insurance programs.

VBM: You're on the VBA's Government Relations Committee, What are its goals for the current legislative session?

GIBBONS: The Vermont Supreme Court Bianci decision has really caught bankers' attention. That's the decision requiring that all permits are issued and that a property meets zoning regulations before it can be sold. Real estate agents, Realtors and even the insurance industry are also very concerned that this be addressed in this session, and I believe it will be. It's a major stumbling block in some areas to sale of property that has been in established use for 10, 15 and 20 years.

VBM: What is the legislative remedy?

GIBBONS: I believe they will do some sort of grandfathering, if there isn't abuse, so to speak.

The other thing we want to keep an eye on is the fiscal stability of the state. We want predictability in our tax and regulatory environment. Through Act 60, the banks were levied with a 140-percent increase in our deposit franchise tax. That was a substantial amount of money.

VBM: You will have to pass on to your customers, is that connect?

GIBBONS: That's correct.

VBM: Many others also urge stability in the tax environment, and certainly Act 60 is a major change. If Act 60 is unchanged from now on, would that constitute stability?

GIBBONS: We're a little concerned with the business environment. We want to make sure there are programs to explicitly encourage businesses to stay and to grow in Vermont, and to come here. Governor Dean's package of business incentive tax credits and a realistic state approval process far state (property) tax stabilization are important to us.

I would guess that on a per capita basis, Vermont has one of the highest proportions of entrepreneurial businesses. People move here for whatever reason, and they start businesses -- a small software company, the Turtle Fur Company.

VBM: When statistics on that become available, they usually indicate Vermont has more small businesses than any other state in the country.

GIBBONS: Right. And that brings me to the effect of the Small Business Administration.

VBM: You're chairman of the Vermont Small Business Advisory Council. Is that connected with the SBA?