Pub. 3 2015 Issue 4

23 Winter 2015 The Community Banker while ensuring the breached merchants pay their fair share. With the power that the lightly regulated retail sector wields in Washington, increasing mer- chant accountability will not be easy. But ICBA and community banks will do everything we can to promote a fairer system for our industry. Information sharing In the realm of cybersecu- rity, ICBA is working to ensure Washington recognizes that community banks take the issue seriously and already comply with a bevy of mandates under existing federal and state laws, regulations and guidance. Community banks and others in the financial sector are on the frontlines in defending against cyberthreats. Protecting the confidentiality and integrity of consumer data and mitigating the risks of hacking and cyber- fraud are part of the community bank business. To improve how we as a nation combat this persistent threat, the public and private sectors must be willing and able to share advanced threat and attack data in a timely manner and among financial institutions of all sizes. This principle of equitable information-sharing is a central part of ICBA’s cyberse- curity platform, and fortunately it is a top issue for policymakers as they consider legislation to encourage two-way informa- tion-sharing among the public and private sectors including liability protections for pri- vate-sector institutions that would encourage them to share cyberthreat information with the government. Further, ICBA opposes efforts to make banks liable for losses incurred by business customers as a result of their poor secu- rity practices and is working with the industry to enhance card security by implementing chip technology, tokenization and end-to-encryption. While community banks are diligent in managing these vendors, mitigating cyberthreats to these outside parties is a challenge. As a result, we’re calling on regulators to be aware of the significant interconnectivity of these third parties and to actively collaborate to mitigate their risks. Tools of the trade The impact of the upcoming Washington action on cyberse- curity and data security remains to be seen, but there are avail- able resources to help commu- nity banks protect themselves and their customers from persistent threats. For instance, banking regulators are encour- aging all financial institutions to participate in the Financial Services Information Sharing and Analysis Center. FS-ISAC provides alerts and real-time information on security threats. The mem- ber-owned organization, which offers memberships starting at nominal fees, is designed to foster collaboration, gath- er and validate information, and disseminate insights on security issues. Meanwhile, ICBA continues to offer data- and cybersecurity resources on its website, including a toolkit to help community banks respond to retail data breaches. The stubborn threat of cybercrime that plagues the public and private sectors has put the onus on Washington to act in 2015. ICBA and commu- nity banks will work diligently to maximize the effectiveness of our nation’s response while mitigating the potential for negative consequences for our industry and the communities we serve. Lilly Thomas ( Lilly.Thomas@icba.org) is ICBA vice president and senior regulatory counsel, and Aaron Stetter (Aaron.Stetter@ icba.org) is ICBA senior vice president of congressional relations and advocacy. We’re here to help Oregon bankers . Funding is a balancing act. Getting it right is crucial to your success... and ours. For more than 50 years, our member-owned cooperative has helped Oregon's community lenders grow by providing funding solutions, strategies and training that builds balance sheets, mitigates risks and increases efficiency. How can we help you? Contact your relationship manager today to find out how we can put our products and services to work. John Biestman 206.340.2473 johnbi@fhlbsea.com Debra Davis 206.340.8663 ddavis@fhlbsea.com www.fhlbsea.com 206.340.2300 800.973.6223 12-004-FED_OBA_Funding_Ad_20130108.indd 1 1/8/13 2:52 PM e’r r t lp Montana Bankers r . Our ember-owned cooperative h lps Montana’s community lenders grow by providing funding solutions, strategies, and education that builds balance sheets, mitigates risks, and increases efficiency. How can we help you? Contact your relationship manager today to learn how we can put our products and services to work for you. John Biestman 206.340.2473 johnbi@fhlbsea.com Eric Jensen 206.340.2489 ejense@fhlbsea.com fhlbsea.com 206.340.2300 800.973.6223