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WHY JOIN THE NEW YORK BANKERS ASSOCIATION?
Since 1894, the New York Bankers Association's
primary mission has been to be the State's preeminent provider of legislative
and regulatory services to a unified banking industry. Over the years, the
Association's mission has grown to include educational programs, public
relations, political action and member services geared to enhance the
profitability and stature of New York's banking industry. Today, the New York
Bankers Association represents community, regional and money center commercial
banks and thrift institutions in New York State with 340,000 employees and more than $3 trillion in
aggregate assets.
NYBA's member banks play a leading role in the
health and vitality of their communities through their commitment of financial
and human resources to a wide range of worthwhile groups and projects. In 2004,
member banks contributed $229 million to more than 20,000 community groups. More
than 76,000 employees donated their time and skills to community service in
2004.
The Association boasts an impressive record of achievement over the past century on behalf of
the banking industry. Below are the highlights of the past 14 years.
LEADERSHIP FOR A NEW CENTURY:
KEY VICTORIES SINCE 1990
Permanent deregulation of interest rates, consumer loans, fees and
products NYBA has been at the forefront of a comprehensive strategy to deregulate pricing and usury ceilings. In 1994, all State
usury ceilings on loans were permanently deregulated. At NYBA's request, the New York State Banking
Board approved a sweeping deregulation of Insufficient Funds Fees (NSF) fees, eliminating the $15.00 fee cap
for State-chartered banks. The Association also worked to defeat legislative efforts to recap the fees.
The Association has been successful in resisting local and State initiatives to ban or cap ATM convenience fees.
Financial Modernization In November 1999, the Gramm-Leach-Bliley Act became law, setting forth
a legal framework within which all financial services firms could finally compete on a level playing field.
The New York Bankers Association, using its breakthrough dtente with the insurance industry in New York,
led negotiations at the national level to forge a compromise on the all-important insurance provisions of
the legislation. Similar State legislation was adopted in 2000.
"Wild Card" Legislation "Wild Card" legislation, which authorizes the New York State Banking Board
to approve new activities and products for State-chartered banks, thereby restoring State-chartered
banks' historical parity with national banks, passed in 1997 and was extended for two years in 1998. In 1999,
the Legislature extended the law for three years. In 2003, NYBA achieved the longest 'wild card' extension
ever, preserving this important law for another four years. The Association's first "wild card" petition
giving State-chartered banks the ability to sell all lines of insurance directly to their customers was granted
in 1998. In 2001, the Banking Board approved a NYBA-originated proposal to reduce the number of
State-chartered bank board of directors meetings from 10 to 6 per year. NYBA also relied on the parity goals
of the "wild card" statute and petitioned for a regulation to permit boards of directors of New York
State-chartered banks to take action using unanimous written consent. As a result, the Banking
Department recently finalized a regulation that sets forth the permissible uses of the unanimous written consent vehicle.
The Association is also awaiting action on a petition to authorize State-chartered banks to
underwrite revenue bonds.
Privacy NYBA was the first banking trade association in the nation to develop Privacy "Best
Practices Guidelines" for Financial Institutions. The Association also played a leadership role in forming an
inter-industry coalition to coordinate State-level privacy efforts and provided testimony before several
committees of the New York Assembly urging that the privacy provisions of Gramm-Leach-Bliley were sufficient to
protect the interests of New York consumers. The initiative resulted in the successful resistance to new,
onerous State privacy legislation. However, the Association strongly supported other efforts to protect
consumer privacy such as the criminalization of identity theft and a statewide "do not call" registry. NYBA
supports efforts at the Federal level to make permanent the exemptions contained in the Fair Credit Reporting Act.
Uniform Commercial Code (UCC) Article 9 The Association achieved a top legislative priority when
the revised Article 9 of the UCC was enacted in New York effective July 1, 2001. The statute governs all
loans secured by personal property and has been called the most significant new commercial law in the U.S.
since 1972.
Municipal Finance Reform The State legislature adopted in 1998 an Association priority that
reenacted and made permanent the collateral provisions of the 1992 revision to the General Municipal Finance
Law and subjected indirect investment vehicles, such as CLASS, to extensive new governance and
regulatory procedures, greatly reducing collateral costs for banks. NYBA was successful in opposing bills in 2003,
and again in 2004, that would have authorized local governments to invest in mutual funds and that would
have created a State-run investment pool (STIP) for municipal deposits.
Right to sell property & casualty
insurance As a direct result of the court case brought by NYBA
and The Canandaigua National Bank and Trust Company, in combination with a "wild card" petition filed
by NYBA, all banks in New York State gained the right to sell property and casualty insurance to their
loan customers.
Bank Tax Rate Reform and Reduction NYBA achieved its number one 1999 State legislative
priority when Governor Pataki signed into law a bank tax rate reduction that is saving the State's banking
industry over $100 million per year. The reduction called for an aggregate 1.5% tax rate cut over three
years, bringing the rate down to 7.5% by 2002. In 2003, this important tax reform was extended. In addition,
the State Legislature passed a NYBA-initiated measure that clarifies the tax treatment of trusts established
in out-of-state affiliates of New York banks. The legislation is important for maintaining New York as
a headquarters State for the trust industry.
Deposit Insurance Reform NYBA chaired a national task force of state banking association executives
on federal deposit insurance reform. Its objective was to achieve industry consensus on the issue of
100% coverage of municipal deposits. In addition, for the past five years, NYBA's own task force on
deposit insurance has been recommending that the current coverage level be increased to an amount indexed
to inflation, and that new entrants be assessed an initiation fee. The recommendation also envisions a
merger of the Bank Insurance Fund (BIF) and the Savings Association Insurance Fund (SAIF) in conjunction
with the coverage increase. In 2001, NYBA played a leadership role in helping to craft a unified, national
industry policy on this important issue. The Association was successful in its efforts to get a municipal
deposit coverage provision included in House and Senate legislation in 2002. The House passed the bill in 2003.
Commercial Mortgage Foreclosure The State enacted in 1998 a major NYBA initiative permitting
lenders to engage in uncontested foreclosures on commercial properties in an expedited non-judicial proceeding.
The bill was set to expire on July 1, 2001, but the legislature granted a four-year extension during the
2001 session.
Predatory Lending NYBA led a legislative, regulatory and public relations initiative to help
eradicate abusive lending practices while educating the public and key policy makers on the difference
between predatory and sub-prime lending. The Association's High Cost Home Loan Working Group launched
an innovative communications/outreach pilot project, in conjunction with U.S. Senator Charles E. Schumer
and New York City faith-based organizations, designed to help potential borrowers in low- and
moderate-income neighborhoods achieve their goal of home ownership. NYBA, in addition to working closely with the
Federal Trade Commission on a consumer education initiative, was the first banking trade association to
develop Best Practices Guidelines for High Cost Home Lending. With the passage in the fall of 2002 of both
a Statewide high cost home lending law and a New York City Council ordinance designed to prohibit
financial firms that grant, underwrite or securitize certain loans deemed to be predatory from doing business with
the City, the focus of the predatory lending issue has now shifted from the legislature to the regulators and
the court system. NYBA continues to support a uniform standard. The Association filed an
amicus brief in Mayor Bloomberg's suit that overturned the New York City ordinance.
Bank Security NYBA formed a Bank Security Task Force in response to an increase in note passer
bank robberies in the New York City area. The Task Force developed Best Practices that were presented at
a joint news conference with the New York City Police Department. The partnership resulted in a
significant decrease in the number of bank robberies in New York City. NYBA continues to work cooperatively with
law enforcement and has been effective in increasing awareness of and participation in the NYPD's
A.P.P.L. communications system. In addition, NYBA was successful in resisting inflexible security
mandates, including ATM 'panic buttons' technology that has been proven ineffective in banking industry tests.
Trust and Investment The Association's Trust and Investment Division is active and fully engaged in
the effort to make New York State's trust business more competitive. In 2001, two key components of
NYBA's trust agenda were enacted. One bill revised the Principal and Income Act to take into account new types
of investment instruments and broaden the authority of trustees to allocate funds between principal
and income. Another bill responded to proposed IRS regulations that would deny the Federal
generation-skipping transfer tax exemption for certain trusts. In 2003, the State Legislature passed a
NYBA-initiated measure that clarifies the tax treatment of trusts established in out-of-state affiliates of New York banks.
The legislation is important for maintaining New York as a headquarters State for the trust industry. NYBA
is undertaking a joint study with the Lower Manhattan Development Corporation aimed at retaining
and attracting New York trust business.
Brownfields Redevelopment NYBA spearheaded the formation of an alliance of business groups
around the State to work for brownfields redevelopment legislation that would protect both lenders and trustees
from environmental liability reversing what has long been an obstacle to economic development. The
group included the Buffalo Niagara Partnership, the Long Island Association, the Metropolitan
Development Association of Syracuse and Central New York, the Partnership for New York City and the
Rochester Business Alliance. Governor Pataki signed the landmark legislation in 2003.
Interstate banking and branching The New York Bankers Association played a key role in the
passage of 1994 federal legislation that provided for full interstate banking (i.e. ownership of banks by
out-of-state holding companies), preempting any state restrictions. The Association took a leadership role at the
State level becoming the first State to authorize reciprocal interstate branching in 1992 and adopting an early
opt-in into nationwide branching in 1996.
Estate and Gift Tax In 1999, New York's estate tax was replaced with a " sop" tax or "pick up" of
the Federal credit for State death taxes, reducing the rate from 21% to 15%. The legislation increased
the exemption level for estates to the Federal level, with a cap on the pickup of $1 million. In addition,
the unified credit for gift taxes was increased for gifts made on or after January 1, 1999. The gift tax
was repealed on January 1, 2000. The changes were designed to enhance the competitiveness of New
York's trust and investment industry.
Euro NYBA successfully argued for State legislation recognizing the euro for commercial contracts
after January 1, 1999. New York, a global financial center, was the first State to do so.
Holocaust Assets NYBA's work with the Presidential Advisory Commission on Holocaust Assets in
the United States produced a Suggested Best Practices Guide to be used when conducting Holocaust
asset research. At the request of the Commission, the Association and several member banks took a
leadership role in the development of these important Guidelines. Our work figured prominently in the final report of
the Commission, which was presented to President Clinton in 2001. Senator Hillary Rodham Clinton
publicly lauded the Association for its leadership in this important and historic undertaking.
NYBA in Court
Saxton In this decision, in which NYBA filed an
amicus brief, regarding a trustee's duty to diversify
trust assets, the Appellate Division held that an amount equivalent to the capital gains that would have been
due if a portfolio had been diversified, should be deducted from damages awarded for a trustee's failure to
so diversify.
Prankard In this decision, the Appellate Division confirmed the principle that a corporate trustee is
entitled to reasonable compensation as a matter of right. NYBA filed
an amicus brief in this case, whose outcome
is critical to the continued profitability of trust administration.
Onbank In 1997, Governor Pataki signed Association-initiated legislation to overturn the Onbank case. The legislation made clear that bank trust departments are authorized to invest the assets of common
trust funds in mutual funds, and to pay investment advisory and other management-type fees from the
common trust fund assets.
Canandaigua As a direct result of the court case brought by NYBA and The Canandaigua National
Bank and Trust Company, in combination with a "wild card" petition filed by NYBA, all banks in New York
State gained the right to sell property and casualty insurance to their customers.
Right to Sell Annuities The Court of Appeals unanimously affirmed State-chartered banks' rights to
sell annuities, a case initiated by NYBA. The U.S. Supreme Court affirmed national banks' authority, with
NYBA assisting as amicus.
Bank Tax Audit Fees In this 1992 case, the Court of Appeals upheld NYBA's challenge of
the constitutionality of the State bank tax audit fee. The decision saved NYBA member banks a minimum of
$3 million since the legislature dropped the fee from future budget bills and refunded fees already paid as
a result of NYBA's lawsuit.
Predatory Lending - The Mayor of the City of New York v. The Council of the City of New York and
the Comptroller of the City of New York
- In 2003, NYBA filed an amicus
curiae brief, supporting the Mayor's motion for a preliminary injunction in this case, which challenges the City Council's predatory lending
bill both because the law would curtail various powers vested in the Mayor by the City Charter and by State
law, and because the local law is preempted by State law. This case is important, in that it will, to some
degree, establish parameters for those banking issues over which the City - and perhaps other localities - may
claim legislative jurisdiction.
Duties of Executors and Trustees - T/U/W Blanche Hunter f/b/o Pamela
Creighton. NYBA filed an amicus curiae brief in this case this summer, challenging a Surrogate Court decision, in which the
Court distinguished between the duties of executors and trustees. This decision, if upheld, would undermine
the widely held belief that when fiduciaries act as both executor and trustee, all issues pertaining to acts
or omissions during the estate administration are determined finally by the decree settling the estate and
trust beneficiaries do not have the right to raise any of those issues in a trust accounting proceeding.
Garnishment - Bernie Huggins v. George Pataki, HSBC Bank USA and Spring Creek Associates,
LP. NYBA plans to file an amicus
curiae brief in this case in support of the lower court's decision dismissing
plaintiff's action. The complaint alleged that HSBC's compliance with New York's garnishment statute, when it
knew or should have known that the plaintiff's account was exempt from garnishment, violated his due
process rights under the 14th amendment of the United States Constitution and under the Social Security Act.
Given the vast number of garnishment notices which are served on banks daily, a finding in this case shifting
the burden to banks to determine whether or not funds in an account are exempt from the garnishment
statute, could create significant administrative and legal challenges for financial institutions.
Insurance and Member Services NYBA's Profit Solutions Division continues to make
significant contributions to participating member banks' bottom lines. Once again, the Insurance Trusts provided
the greatest value, with dividends over a ten-year period topping $18 Million. The Group Creditors
Insurance Trust, along with Trustees Life Insurance Company distributed a record $2,553,985 in 2002.
Another windfall to both the Group Creditors and the Group Employee Insurance Trusts came as the result of
the Prudential Insurance Company's demutualization, which totaled $932,630 distributed to participating
banks in 2002.
The Bank-owned title insurance program, facilitated and endorsed through NYBA's Circuit Agency,
Inc., continues to be extremely successful. The two multiple bank-owned agencies, comprised of 39
owner banks, have generated title insurance sales of over $6 Million since June 2000 and received dividends
of over $1 Million for the same period.
Finally, the New York Bankers Service Corporation (NYBSCO) endorses over two-dozen profit
generating and expense saving products for member banks. In 2002, NYBA added 7 new products with a focus on
high tech business solutions ranging from fraud detection to electronic archives.
Education Programs Over 75 professional development programs are sponsored annually,
attracting close to 4,000 participants. Through partnerships with leading national training firms, NYBA offers New
York bankers top quality programming on a regional basis. In addition, NYBA sponsors eight
three-to-five-day banking schools that focus on fundamental concepts and career development. Continuing education
and college credit recommendations are available for many of the courses. Over 94% of the member
banks attended at least one program in 2005, with 38% of the members attending 10 or more programs.
In addition to the traditional on-site schools and seminars, NYBA also offers an on-line training center,
with access to over 125 banking-specific instructor-led and self-paced courses.
An extensive calendar of
telephone seminars provide focused updates on a wide array of timely issues. These alternative
delivery methods have not only broadened the scope of NYBA programming but also provide the means to
respond quickly to industry developments. NYBA is a
Local ABA Training Provider, a reseller of ABA educational programs and
products, including the nationally recognized AIB curriculum.
PAC and Grassroots The Association maintains a vibrant Political Action Committee (PAC) and
an effective grassroots banker network. The PAC supports candidates at the State and Federal levels
who share NYBA's objective for a strong, healthy financial services industry as the foundation for
economic prosperity in New York State. Association members are deeply involved in political action and may
utilize NYBA's automated, e-mail-based Legislative Action Center on www.nyba.com to communicate quickly
and effectively with State and congressional leaders.
Major Meetings
Education is also a driving force behind the major meetings the
Association hosts each year. In 2004-05, NYBA sponsored the following:
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Annual Meeting & Bankers' Day in Albany, a discussion with
legislative leaders on the issues facing the industry and the State;
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Annual Financial Services Forum with a stellar
roster of speakers from the worlds of banking, finance, government and
the political arena.
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Annual Washington Visit, which includes meetings with
leading legislative and regulatory policy makers.
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Annual Trust and Investment Conference, a forum for the
discussion and exploration of issues and trends relating to trust and
financial services activities; and
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Annual Retail Banking Conference, with discussions and
presentations focusing on product delivery, branch administration,
retail credit and small business activities.
Publications and Public Relations
As a
member, you will receive weekly, monthly and quarterly publications that
cover legislative, regulatory, legal and other topics of interest to New
York's financial services industry. Members can access www.nyba.com
for up-to-the-minute news about issues impacting the industry. The
Association's public relations efforts are aimed not only at building
communication among the members, but also at fostering greater
understanding between the industry and the community.
JOIN US
The New Century Fund:
An Association Milestone
In
addition to the association's many legislative and regulatory
accomplishments over the past one hundred and seven years, the start of
the twenty-first century brought another reason to celebrate. Since the
1890's, the association has been funded by annual dues paid by its
member banks. The New Century Fund is NYBA's innovative answer to the
traditional financing structure. The Fund, which has attracted more than
40 bank member investors and over $42 million, provides sound financial
footing for the association's future. Considered a bold move for a trade
association, the New Century Fund has received national attention in
industry media.
The
annual dues for voting members are currently based upon their total New
York State banking assets, with a minimum
assessment of $2,000. Alternatively,
NYBA offers its regular members the option of making a one-time
contribution to its New Century Fund, which is equal to 20 times the
annual dues amount.
Of
course, the most important benefit of membership is your chance to be a
part of a group that has been helping to shape the financial services
industry in a meaningful way since 1894. We hope you will join us.
Michael P. Smith
President
New
York Bankers Association
(212) 297-1699 or
msmith@nyba.com
HOW TO BECOME A MEMBER OF THE NEW YORK BANKERS ASSOCIATION
The
New York Bankers Association (NYBA) has four membership categories:
REGULAR MEMBERS
This
category includes any bank holding company that controls one or more
banks, or any holding company that controls one or more thrift
institutions, in New York State. This category also includes
unaffiliated banks or thrift institutions as well as financial holding
companies and their affiliates, provided that at least one affiliate is
a bank.
For
this category,"bank" means any bank or trust company
established and doing business under Article 3 of the Banking Law, or
any national bank or private banker with its principal place of business
in New York, or any out-of-state or foreign bank with one or more
deposit-taking or other offices in New York or with at least ten
employees in New York.
The
terms "bank holding company," "financial holding company"
and "control" shall have the meanings set forth in the Bank
Holding Company Act of 1956, 12 USC ¤1841.
For more information, please contact
Mary K. Robb,
Senior Vice President, at (212) 297-1662.
Membership benefits -- As a regular member, your dues entitle your
institution, through its official representatives, to serve on
committees as full voting members and to participate in all of
the programs and services offered by the Association. These programs and
services include: representation by NYBA in Albany and Washington on
legislative and regulatory matters; discounted enrollment in all
schools; discounted attendance fees for conferences, seminars and
meetings; and participation in NYBA's retirement system and all credit,
employee benefit and general insurance programs. Regular members also
receive all bulletins and publications of the Association.
FINANCIAL SERVICES INDUSTRY MEMBERSHIP
Any
person, firm, association or corporation which is unaffiliated with a
bank, but is engaged in the financial services industry (including but
not limited to insurance companies and agencies, and securities
companies), may become a Financial Services Industry (FSI) Member.
Membership Benefits -- As a Financial Services Industry member, your
dues entitle your organization to participate in all of the programs and
services offered by the Association. These programs and services
include: representation by NYBA in Albany and Washington on legislative
and regulatory issues; discounted enrollment in all schools; discounted
attendance fees for conferences, seminars and meetings; and
participation in NYBA's retirement system and all credit, employee
benefit and general insurance programs. FSI members also receive
bulletins and publications of the Association.
NON-RESIDENT MEMBERS
Any
foreign bank and any bank or bank holding company or thrift institution
or thrift holding company with its principal office located outside New
York that is not eligible to be a regular member.
Membership benefits -- As a non-resident member, your dues entitle
your institution to participate in all of the programs and services
offered by the Association. These programs and services include:
representation by NYBA in Albany and Washington on legislative and
regulatory matters; discounted enrollment in all schools; discounted
attendance fees for conferences, seminars and meetings; and
participation in NYBA's retirement system and all credit, employee
benefit and general insurance programs. Non-resident members also
receive bulletins and publications of the Association.
SERVICE MEMBERS
Any person, firm, association or corporation
engaged in bank-related businesses may become a service member. This category also includes trade
associations related to banking and any governmental or
quasi-governmental organization.
Service Membership benefits -- As service members, your dues entitle
your organization to participate in all of the programs and services
offered by the Association. These programs and services include:
discounted enrollment in all schools; discounted attendance fees for
conferences, seminars and meetings; and participation in NYBA's
retirement system and all credit, employee benefit and general insurance
programs. Service members also receive bulletins and publications of the
Association.
MEMBERSHIP DUES
Dues
for service membership in the New York Bankers Association are $2,000
per year. The fiscal year runs from May 1 to April 30 and dues will be
prorated for those joining after the fiscal year has begun. Please
contact Mary K. Robb,
Senior Vice
President, at (212) 297-1662 for more information.
APPLYING FOR
MEMBERSHIP
To
apply for membership in any of the above categories, send a letter to
the Association requesting to become a member. Please include with your
letter a reference from one or more member banks; publicly available
annual reports and other financial statements; background biographical
information regarding principal officers of the company or association.
In the case of a regular member, also include a copy of a certificate of
good standing or equivalent furnished by your principal regulatory
authority.
On
review of any membership application, NYBA's Secretary will make an
assessment of the applicant's appropriate membership category with the
goal that each potential member benefit from the broadest level of
membership for which it may qualify.
Click here for a membership application.
All membership applications are subject to approval by the New York
Bankers Association's Board of Directors.
Click on Member List
to find lists of current members in the above categories.
We
look forward to receiving your application. If you have any questions,
please call Mary K. Robb, NYBA
Senior Vice President, at (212) 297-1662 or
e-mail her at mrobb@nyba.com.
Thank you. |
