Call to Order and Roll Call
The 1st meeting of the Interim Joint Committee on Banking and Insurance was held on Monday, September 24, 2012, at 2:30 PM, at the Northern Kentucky Convention Center. Senator Tom Buford, Chair, called the meeting to order, and the secretary called the roll.
Present were:
Members: Senator Tom Buford, Co-Chair; Representative Jeff Greer, Co-Chair; Senators Jared Carpenter, Julian M. Carroll, Dennis Parrett, Jerry P. Rhoads, Dorsey Ridley, John Schickel, Dan "Malano" Seum, and Brandon Smith; Representatives Dwight D. Butler, Will Coursey, Ron Crimm, Robert R. Damron, Mike Denham, Ted Edmonds, Joseph M. Fischer, Danny Ford, Jim Gooch Jr., Sara Beth Gregory, Mike Harmon, Dennis Horlander, Dennis Keene, Adam Koenig, Michael Meredith, David Osborne, Ryan Quarles, Jody Richards, Steve Riggs, and Arnold Simpson.
Guests: Ballard Cassady, President & CEO, John Cooper, Legislative Consultant, Debra Stamper, General Counsel, Kentucky Bankers Association, and Charles Vice, Commissioner, Department of Financial Institutions.
LRC Staff: Sean Donaldson and Jamie Griffin.
Senator Buford welcomed the members of the Kentucky Banker’s Association and asked that the minutes from the November 22, 2011, meeting be approved.
Status of the Banking Industry
Ballard Cassady, President, Kentucky Bankers Association, welcomed the committee to the Kentucky Bankers Association annual convention and updated the committee on the banking industry in Kentucky. He stated that Kentucky banks are doing well, despite changes that have been made in Washington, DC. There are 196 financial institutions in Kentucky, and over half are at least 100 years old. The banking industry in Kentucky is strong and doing well.
Status of the Banking Industry and Dodd-Frank Reform Act
Charles Vice, Commissioner, Department of Financial Institutions, discussed the European fiscal crisis, U.S. economic conditions, and Kentucky banking conditions. The United States and Europe are significantly linked through trade and financial channels. Europe is one of the United States’ largest trading partners, and United States money market funds hold core European bank debt. The European crisis is due to excessive deficits, such as the debt in Greece, collapse of housing booms in Spain and Ireland, and debt and account deficits in Italy and Portugal. The impact on the United States has been diminished exports, the volatile dollar, and investors’ reduced euro assets. The Commissioner spoke on the numbers of finalized, proposed, and required but not yet proposed regulations under Dodd Frank. He explained the steps of quantitative easing that the Federal Reserve has taken since 2008. Commissioner Vice stated that, despite the current economic conditions, Kentucky banks remain strong.
John Cooper, Legislative Consultant, Kentucky Bankers Association, Bob Weiss, Kentucky Home Builders Association, and Tom Underwood, testified about how the “Affordable Health Care Act” will affect association health plans. They expressed concerns regarding affordability, access, and coverage. The association plans have been very successful. Mr. Cooper stated that a meeting has been arranged with the associations and Cabinet for Health and Family Service representatives to discuss the concerns. Senator Tom Buford asked that the associations report to the committee with the results from the meeting.
With no further business, the meeting adjourned.