FDIC

When it comes to shaping the regulatory and business environment to best serve the needs of banks and consumers, shortsightedness and lack of consistency may be two of the greatest obstacles facing the financial industry today.

In a 1-on-1 sitdown with Dodd Frank Update at CBA LIVE 2019 in Washington D.C., Consumer Bankers Association President and CEO Richard Hunt detailed his views on the need for cooperation among federal regulators.

Read on for all the details from our interview with Hunt.

As fintech companies increase their presence in the banking industry through partnerships and other methods, the financial industry has been home to some mixed reactions.

Federal Deposit Insurance Corp. (FDIC) Chairwoman Jelena McWilliams and Comptroller of the Currency (OCC) Joseph Otting touched on the dynamic between fintechs and banks with Consumer Bankers Association (CBA) President and CEO Richard Hunt during the closing general session at CBA Live 2019.

Find out what the regulators had to say on the topic.

Top of mind for a large portion of attendees at the Consumer Bankers Association’s (CBA) 2019 annual conference in Washington D.C. was if and when federal regulators will take action to modernize Community Reinvestment Act (CRA) requirements, as well as the importance of investing in technology and how to open lines of communication between regulators and banks.

Attendees heard from industry insiders about their views on pertinent issues ahead of interviews with Comptroller of the Currency Joseph Otting and Federal Deposit Insurance Corp. Chairwoman Jelena McWilliams, both of whom have power to act on many of the topics discussed.

Get a detailed account of key insights revealed about those issues. 

The House recently passed four bipartisan bills proposing policy changes that would impact bankers and mortgage professionals and certain federal agencies that regulate them.

The approved measures are: H.R. 758, the Cooperate with Law Enforcement Agencies and Watch Act; H.R. 974, the Federal Reserve Supervision Testimony Clarification Act; H.R. 1122, the Housing Choice Voucher Mobility Demonstration Act; and H.R. 1414, the FinCEN Improvement Act.

Learn more details about the proposed impacts of each measure.

Taking the next step in its project to modernize federal examination processes, the Federal Financial Institutions Examination Council (FFIEC) recently issued a policy statement aimed at promoting clarity and consistency of reports of examination.

The principles include expectations for what information should be included in ROEs, as well as guidance on how that information should be presented to promote consistency, clarity and ease of reference, among other things.

Find out more details about the principles set forth in the new policy statement.

Consumer Financial Protection Bureau (CFPB) Director Kathy Kraninger recently announced that the bureau is launching an initiative aimed at helping consumers struggling financially by educating them on better saving habits.

The “Start Small, Save Up” initiative offers tips, tools and information to help consumers build a basic savings cushion and saving habit, as a foundation for securing their financial futures, according to a CFPB press release. The Federal Deposit Insurance Corp. also weighed in on the benefits of good savings habits.

The announcement coincides with America Saves Week, which is Feb. 25-March 2. Read on to learn more about what the agencies had to say.

The banking industry rounded out its most profitable year in history with $59.1 billion in fourth quarter profits, owing at least some of that increased revenue to tax law changes that have taken effect since 2017.

Fourth quarter profit totals indicate a $33.8 billion increase from the previous year and bring total 2018 banking revenue to $236.7 billion, according to the Federal Deposit Insurance Corp.’s latest Quarterly Banking Profile.

Find out what factors allowed the industry to continue to post record profitability numbers in 2018.

Recognizing the ever-growing risk cyberattacks pose to the financial sector and the ever-increasing sophistication of such attacks, the federal Office of the Inspector General indicated that the Federal Deposit Insurance Corp. (FDIC) should make cybersecurity oversight a top priority in a recent report.

OIG describes the various elements of cybersecurity risk banks should account for and offers recommendations for how FDIC examiners can take a “nimble” regulatory approach designed to facilitate the implementation of better security protocols at institutions it oversees. 

Find out more about what areas the FDIC has been urged to improve.

The federal banking agencies recently published a letter to covered banks and savings institutions with instructions for submitting 2018 fourth quarter consolidated reports of condition and income (Call Report).

The letter applies to institutions with total assets less than $1 billion supervised by the Federal Deposit Insurance Corp., including community institutions.

Read on to get more details.

Five federal financial regulators are seeking comments on a proposed rule that would exclude community banks from Volcker Rule restrictions. The jointly proposed rule implements a provision of the Economic Growth, Regulatory Relief, and Consumer Protection Act.

FDIC Board Member Martin Gruenberg detailed what he believes should be considered when crafting such exemptions during a recent meeting with the FDIC Board of Directors, including asset thresholds and collateralized debt obligations.

Find out more details about how the exemption would impact community banks.