Jeff Harjo, a certified public accountant, is a partner at HoganTaylor, where he leads the public accounting firm's financial institutions practice, utilizing more than 25 years of experience in audit, risk management and compliance. Harjo previously served as chief risk officer and chief auditor for BOK Financial Corp. and also was director of finance and human resources for AFN LLC. He spent the first 15 years of his career at KPMG LLP, where he was director of assurance services. MICHAEL WYKE / Tulsa World
1: What do you see as the biggest regulatory challenge facing local banks right now?
Financial institutions in Oklahoma understand their customers' businesses very well and have operated safely for years. Even though many of the rules were not intended for local banks, the Dodd-Frank Act is impacting all financial institutions. For example, financial institutions that offer mortgages to customers will need to understand the new mortgage rules that go into effect in early 2014.
This creates an opportunity for financial institutions of all sizes that can create value by implementing the rules with low impact, or even positive impact, to customers. This is also an excellent opportunity for the many talented compliance and support professionals in our local financial institutions who are demonstrating their value now more than ever.
2: Are the rules and regulations that were put in place as part of Sarbanes-Oxley and the Dodd-Frank acts helping customers or hurting them?
Since the title of those laws includes the words "investor protection" and "consumer protection," I have to believe the new rules will ultimately help shareholders and customers.
Companies should try to find the good in the rules and implement them in a way that benefits customers. For example, Sarbanes-Oxley is challenging, but companies that get it right find a way to be more accountable and transparent to their shareholders - perhaps attracting more shareholders.
Dodd-Frank mandates both institutional reforms and consumer protection measures. The rules will take a while to work as intended. Like anything, there is bad and good.
Compliance costs have increased and bank revenues are under pressure, but capital and liquidity levels are strong and the number of bank failures has fallen dramatically. Consumers have seen fee increases and difficulty in getting loans, but financial institutions have helped more than 2 million consumers refinance their homes under government programs.
3: From your standpoint, how will today's regulations impact the landscape of Oklahoma's banking industry?
The success of community banking is critical to quality of life in Oklahoma and across the nation. That is a message that financial institutions of all sizes, not just community banks, have delivered to Washington, D.C.
Community bankers are challenged to compete for good loans, meet technology demands and keep pace with new entrants while also increasing capital under the latest rules. If regulation is appropriately tailored and fairly applied, then our Oklahoma institutions will have a fighting chance. If not, we'll likely see more consolidation and competition from outside.
Oklahoma institutions have an advantage in relationship banking. We need to focus more now than ever on delivering products that will improve quality of life for customers.
4: When you're not working, how do you like to unwind or relax?
I run, golf, play guitar and watch baseball, but I get the most enjoyment from my children. Our favorite thing to do as a family is watch live baseball, especially if our son, Luke, is playing. Our daughter, Allie, recently graduated from college and is applying to medical school. We're constantly in awe of our children's accomplishments.
5: What would be one thing that most people don't know about you?
Most people did not know my parents, who passed away too young. They were always helping others and were such as positive influence. My father devoted his life to helping the Creek Indians, and my mother was an Italian immigrant who saved his life and was the center of our family.
Anyone with living parents, I would highly recommend you introduce them to your friends. That means you, Luke and Allie!
Jeff Harjo, a certified public accountant, is a partner at HoganTaylor, where he leads the public accounting firm's financial institutions practice, utilizing more than 25 years of experience in audit, risk management and compliance. Harjo previously served as chief risk officer and chief auditor for BOK Financial Corp. and also was director of finance and human resources for AFN LLC. He spent the first 15 years of his career at KPMG LLP, where he was director of assurance services.
Original Print Headline: Building up banking
5 Questions
1: You've moved from the construction industry with Flintco to power generation with Clifford. What is the learning curve in your new job?
1 How has the Girl Scout program evolved over the years, and what does it offer today?
CONTACT THE REPORTER
918-581-8466
Email
