The American Bankers Association's educational branch has forbidden an alliance between one of its Minnesota chapters and an independent bankers group there.
The Independent Community Bankers of Minnesota last week tried to gain a partnership with a chapter of the ABA's American Institute of Banking. The southern Minnesota chapter of the institute needed financial and staffing help for its education and training programs.
But since the community bankers group was ruled out as an unauthorized third-party partner, the thwarted partners, as well as the Minnesota Bankers Association, are sorting out just what role the independent bankers group could play with an ABA affiliate.
"To me, this is not a trade association issue - it's an issue of ... delivering cost-effective education programs to rural, remote banks," said Allen I. Olson, president of the community bankers group.
His group was to have given financial and staff support to the Minnesota South Central American Institute of Banking, which is run by volunteers. The groups would have split net program revenues.
However, when the American Institute of Banking's Washington headquarters got word of the plan, it told the local chapter that such an alliance would violate the chapter's franchise agreement with the ABA.
"Based on the way our charter agreement works with the chapter, this sort of third-party (relationship) is not sanctioned," said Diane Powers, the institute's national director, although she said the chapter had been unaware of this.
The chapter had sought help from the Minnesota Bankers Association, but when the discussions dragged out, it turned to the community bankers.
Now the chapter has begun new talks with the MBA, said Wes Ehrecke, the association's executive vice president.
Mr. Olson of the community bankers said he still hopes his group can be involved in offering education programs to more rural bankers. The group's leaders recently contacted MBA representatives, he said.
"It's for them to resolve and to understand that we did not seek this arrangement - we were sought out," Mr. Olson said.
Mr. Ehrecke said he hopes the issue will be resolved within 60 days but couldn't say what role the community bankers might play.
