MBA District meetings adopt broader view of industry

Northwestern Financial Review, Oct 15-Oct 31, 2006 by Bengtson, Tom

Minnesota Sen. Linda Scheid, a Democrat from Brooklyn Park, praised bankers at the meeting hosted by the Minnesota Bankers Association for Districts 3 and 4 on Sept. 14 at the Rush Creek Golf Club in Maple Grove. Scheid, chair of the Senate Commerce Committee, addressed bankers along with House member, Rep. Kurt Zellers.

"I know it is companies and businesses that provide jobs," she said. "I'm very respectful of your industry. I am particularly impressed with what you are doing in the metropolitan area."

She urged bankers to share their expertise with elected officials. Scheid referred back to the debate years ago over Minnesota's usury law. She voted for its repeal, she said, only after bankers explained why the repeal was important. In the most recent legislative session, she said discussion over perceived abuses associated with gift cards quieted down after bankers clarified how the cards are used.

Zellers, a Republican from Maple Grove, serves on the House Commercial and Financial Institutions Committee. He said identity theft is a growing problem.

Scheid and Zellers said that constituents consistently identify transportation and education as the state's biggest challenges.

Each fall, the MBA conducts a series of meetings in each of its eight districts, combining the meeting for the two Twin Cities districts. The meetings give the association an opportunity to inform members about association developments, as well as industry issues. The Maple Grove meeting was the fourth gathering, which included business in the morning and a round of golf in the afternoon.

MBA Chairman Vern Smith, president of First National Bank of Deerwood, reported on the July meeting hosted by the American Bankers Association. He said the top issues from the national perspective are credit union competition, the Farm Credit System's Horizon's Project and industrial loan company charters.

The ABA, he said, was encouraged by bankers from across the country to "go on the offensive" on the credit union issue by developing legislation which would prevent credit unions from gaining additional powers. It would require credit unions to convert to banks should they seek more powers. Smith said the legislation could be introduced as early as this January after the new Congress convenes.

MBA's Joe Witt, in response to a question, told bankers that the state's laws regarding ILCs, prevent a commercial company from chartering an ILC in Minnesota. Furthermore, ILCs outside the state are not permitted to branch in Minnesota. "Wal-Mart has no way of getting into Minnesota," Witt said. "They would not be able to put a physical branch in Minnesota."

Smith said MBA is continuing to work on industry image. The MBA's Image Task Force has directed an update of MBA's logo, and last year it provided tools members could use to communicate with media. This year, he said, the association is developing tools that should help MBA communicate more effectively with reporters and editors.

Smith reported that MBA has 450 members, 429 of which are banks. The state has 452 banks. When the Savings League of Minnesota merged with MBA in the summer of 2005, it had 28 members, Smith said. Twenty of those chose to establish a membership with MBA.

Witt, who noted the association has operated for five years without increasing its dues, said MBA is evaluating its options for a new lease. He also said the association is preparing to develop a new strategic plan. "It has been a few years since we last did a strategic plan," he said.

Each meeting included a presentation from RSM McGladrey about contingency planning for avian influenza, and a presentation by law enforcement officers about the impact of growing methamphetamine use across the state. Officers from the Plymouth Police Department showed bankers at the Maple Grove meeting compelling photos of the damage caused by meth use.

"The presentation that has generated the most response from our members is the one about the meth problem," Smith said. "We are all seeing the impact of meth use in our culture."

By Tom Bengtson