As the Independent Bankers Association of America gathers in the Phoenix desert this week for its annual convention, the group couldn't be much lonelier.
The IBAA is the only financial services trade group opposing legislation that would allow banking and commercial firms to own each other.
"The fact that we've got a unique position definitely makes our job very challenging," admits outgoing IBAA president Leland M. Stenehjem. "But we firmly believe that our message is right, that we come from the side of what is sound public policy for the country."
While IBAA has attracted support from labor unions, the elderly, and the ranking Senate Banking Committee Democrat, it lost one of its biggest allies this month when House Banking Committee Chairman Jim Leach admitted the position was not "politically realistic."
Even some IBAA members disagree with the stance.
Take Henry P. Homsher, president and chief executive of the $62 million- asset Frontier State Bank, Redondo Beach, Calif.
"I don't think a total ban is a good idea," said Mr. Homsher. "Allowing banking and commerce to mix might appreciate the value of the charter and make us more competitive."
This year's convention is geared toward ensuring that small banks remain contenders in the financial services market no matter what happens on Capitol Hill.
The 1,187 bankers attending the convention will have more than 60 workshops to choose from, including sessions on using technology to increase profits and competing with rivals swallowed by larger institutions.
Policymakers also will offer advice.
On Friday, Federal Housing Finance Board Chairman Bruce Morrison will discuss how the Home Loan Bank System can provide liquidity for small banks focused on housing and community development lending. Federal Deposit Insurance Corp. Chairman Ricki Helfer addresses the crowd Friday, too, in what could be her last big industry speech before leaving the agency June 1.
On Saturday, Rep. Leach, Comptroller of the Currency Eugene A. Ludwig, and Federal Reserve Board Chairman Alan Greenspan weigh in.
This year's convention attracted 197 vendors, 20% more than last year's meeting in Las Vegas. The IBAA will man a booth, too, hawking merchandise emblazoned with the group's colorful new logo and slogan, "Your Community Bank: On Your Corner, In Your Corner."
IBAA members will be encouraged to put decals with the logo on the doors of their banks, said the group's executive vice president, Kenneth A. Guenther. "We feel community banking should be proclaimed and publicized," he said.
The IBAA will use the convention to announce it is filing an application with the comptroller's office for a limited-service credit card bank. The institution would manage card portfolios and handle risk-management issues for IBAA members.
"Credit and debit cards will be available from a community-banker- friendly source where bankers won't have to worry that their best-customer list will be taken over by competitors," Mr. Guenther said.
