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PRESIDENT’SMESSAGE
Jim Pishue, President & CEO, Washington Bankers Association
2012 Promises to Be an
Eventful Year
Out with the old, and in with the new.
Few bankers I know will be sorry
to see 2011 growing smaller in
the rear-view mirror. Continuing
a journey that began in 2008, our
industry over the past twelve months faced
the economic impacts of a deep and persistent
recession, a new and increasingly intrusive
regulatory environment, intense media
scrutiny, random protests, and any number
of other challenges.
But looking through the windshield at 2012
spreading out before us, the road ahead appears
a bit smoother. The hard work that has gone
into improving credit quality is beginning to
pay off in the form of stronger bank earnings.
Yes, the road ahead in 2012 already looks a bit
smoother than the one we drove over in 2011.
But we can’t afford to be asleep at the wheel.
Many customers remain justifiably wary of
another dip in economic activity, but some are
beginning to once again look at investing in
their businesses. Given these trends, I sense a
cautious optimism on the part of many bankers
in Washington.
For that optimism to materialize over the
coming months, however, our entire industry
must take a broader view of what is “our business.”
Yes, bankers must continue to execute
the fundamentals: building strong customer
relationships, attracting deposits, making
prudent loans, maintaining asset quality and
managing our balance sheets.
But we must also make it “our business” to be
actively engaged in the political and regulatory
processes that impact our ability to serve our
customers and our communities.
As you read this, lawmakers in Olympia are
struggling to find ways to close the remaining
2011-13 budget gap, now estimated at $1.5
billion. The legislature took some steps in
the right direction during December’s special
session, but the choices they’ll face in closing
the remaining gap will be even more difficult.
Legislators will be under
intense pressure to
increase taxes to close
at least part of this gap.
Our industry will once
again be in the crosshairs,
with tax proposals
ranging from the elimination of the first
mortgage interest income exemption to the
imposition of a “windfall” profits tax on financial
service providers. WBA will continue
to lead the industry’s response through the
United Financial Lobby in Olympia.
To maximize our effectiveness, we continue to
need our members to be directly and actively
engaged in our advocacy efforts. That means
having each WBA member bank designate
at least one primary contact to receive issue
updates and to ensure that calls to action are
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completed in a timely manner. It means increasing
participation in Bankers Day so that
our elected leaders hear directly from bankers
in their communities. And it means increasing
financial support of WBA’s WashBankPAC.
That final item is especially important, as the
2012 election season presents an opportunity
to alter the political landscape in the state for
the next few years.
The gubernatorial race seems to be shaping up
into a heads-up battle between Republican Attorney
General Rob McKenna and Democratic
Congressman Jay Insley. The 2010 census
resulted in a new legislative map that changes
the character of a number of districts. Announced
and anticipated departures of some
incumbent legislators are expected to create
more competitive races.
Taken collectively, these changes will provide
banks and others in the business community
more opportunities to help elect candidates
who understand and support the role of the
private sector in providing jobs and creating
economic opportunities for Washington
citizens. The opportunity is there if we are
strategic and aggressive in our actions to take
advantage of it.
Yes, the road ahead in 2012 already looks a
bit smoother than the one we drove over in
2011. But we can’t afford to be asleep at the
wheel.
January/February 2012