American Bankers Association (ABA)

What Is the American Bankers Association (ABA)?

The American Bankers Association (ABA) was established in 1875 and is the largest banking trade association in the United States. The ABA addresses small, regional, and large banks. It offers an extensive variety of beneficial conference to its members, principally in fields, for example, staff training, insurance, capital management, asset management, and risk/compliance.

Member banks utilize multiple million individuals, protect $18 trillion in deposits, and expand almost $11 trillion in loans.

Grasping the American Bankers Association (ABA)

The principal activities of the American Bankers Association (ABA) incorporate supporting professional training for member organizations, campaigning for the interests of American banks and bankers, and creating research for the foundation of industry standards and banking best practices.

One of the ABA's most significant developments is the [nine-digit routing number](/aba-travel number), which it presented in 1910. The routing number is seen on each banking check in the U.S. Its numbering system gives a unique identifier to banks, making check processing simpler and more efficient.

One more area of imperative development by the ABA is the ABA Nasdaq Indexes. The ABA made three Indexes to assist with giving representation to publicly traded banking institutions in the United States. The ABA's three banking indexes include:

• ABA NASDAQ Community Bank Index (ABAQ)
• NASDAQ OMX ABA Community Bank Index (ABQI)
• ABA NASDAQ Community Bank Total Return Index (XABQ)

Activities of the American Bankers Association (ABA)

The ABA is one of the United States' largest financial trade groups, and it is basically a trade organization, and that means it doesn't give actual banking services or work inside the banking system. As a trade organization, it offers numerous beneficial services through membership for its affiliated banks.

While the ABA is a top trade association for its members, banks will likewise regularly have a place with state banking organizations (as well as a few other regional and national associations). Other large banking trade associations with comparative missions incorporate the National Bankers Association, the Independent Community Bankers of America, and the Consumer Bankers Association.

Research Publications

One of the ABA's unmistakable research pieces is the Consumer Credit Delinquency Bulletin (CCDB). This publication is a famous quarterly report on consumer credit data and banking trends. The basis for the publication is a survey that spotlights on the performance of a targeted group of consumer loans offered across roughly 300 banks inside the United States.

The ABA likewise distributes several other high-profile research pieces and publications. Its website and social media platforms are top wellsprings of banking data for its perusers.

Campaigning

The ABA is extremely active in campaigning Congress for banking interests. Notable campaigning activities incorporate the ABA's efforts to liberate parts of the banking industry; these actions finished in the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010. The ABA has likewise campaigned for extra corrections of the regulatory scene, including the slackening of limitations including the Volcker Rule and derivatives regulations.

One more focal point of the ABA's campaigning efforts has been the elimination of the tax-exempt status of credit unions. Generally, credit unions served a small, exceptionally targeted membership, like the employees of a company. As they have advanced, credit unions have had the option to significantly grow their fields of membership and potential customer pools.

Many credit unions currently have more than $1 billion in assets and rival the size of large banks. The ABA has contended that credit unions have become such an excess of like banks that their tax-exempt status is not generally justified.

Effort and Education

The ABA Housing Partners Foundation was made in 1991 to elevate access to affordable housing in U.S. urban communities, including New Orleans, Chicago, San Diego, Boston, San Francisco, Orlando, and Washington, D.C. Through the Housing Partners Foundation, member bankers have assembled Habitat for Humanity homes and directed resources to support affordable housing objectives.

The ABA Foundation looks to assist bankers with showing personal finance skills to members of their networks through different programs, including the Get Smart About Credit program and the Teach Children to Save program.

The ABA likewise has meetings, as well as overseeing numerous online trainings, certifications, and workshops. A plenty of devices, both online and face to face, are offered to its members.

The ABA established the American Institute of Banking (AIB) in 1907. The AIB gave specific training courses and certifications for the banking industry. Ultimately, the ABA combined the efforts of the AIB and the Institute of Certified Bankers (ICB) under its ABA brand umbrella. (The ICB was likewise an ABA-supported group.) The ABA currently offers AIB and ICB training independently under the ABA brand name.

American Bankers Association (ABA) FAQs

When Was the ABA Founded?

The ABA was established on July 20, 1875, when 350 bankers addressing 32 states and regions assembled in Saratoga Springs, New York to charter the association.

What number of Members Are in the ABA?

The ABA addresses around 2,000,000 employees of banks. Banks of various sizes are members of the ABA.

What Is an ABA Number in Banking?

The nine-digit routing number was presented by the ABA in 1910. It is currently seen on each banking check in the U.S. An ABA number is a unique identifier for banks; it is expected to make check processing simpler and more efficient.

What Certifications Are Best to Get for Banking?

The ABA offers professional certification programs, with assignments in wealth management and trust, compliance, risk management, and bank marketing.

A few different certifications that banking professionals should seriously mull over while hoping to build a career in the banking industry incorporate the Chartered Financial Analysts (CFA) assignment, the Certified Financial Planner (CFP) assignment, the Financial Risk Manager (FRM) assignment, and the Chartered Alternative Investment Analyst (CAIA) assignment.

The Bottom Line

The ABA offers training, certification, news, research, advocacy, and community for bankers and members of the financial community. As a trade organization, the ABA doesn't give actual banking services or work inside the banking system. Rather, the Association's primary center is to offer consultative types of assistance and industry-driving research for its members. They are likewise exceptionally active in campaigning Congress for banks of all sizes and charters, including community banks, regional and money center banks, savings associations, mutual savings banks, and trust companies.

Features

• The ABA's primary spotlight is on offering consultative types of assistance and industry-driving research for its members.
• The American Bankers Association (ABA) is a banking trade association with member banks, everything being equal.
• The ABA includes a strong position inside the industry, fathering drives, for example, the nine-digit routing number and the ABA Banking Indexes.
• The ABA is a trade organization, and that means it doesn't give actual banking services or work inside the banking system.
• One of the ABA's noticeable research publications is the Consumer Credit Delinquency Bulletin (CCDB).