FDIC

A recent report by the Government Accountability Office (GAO) found weaknesses in the examination process of the Federal Deposit Insurance Corp. (FDIC) which could expose the regulator to the risk of regulatory capture.

GAO offered four recommendations to the FDIC in its report, saying management could better address threats to capture by improving adherence to agency policies.

Read on for more details from the GAO’s findings.

A joint statement from federal regulators sought to clarify consumer due diligence (CDD) requirements for institutions under the Bank Secrecy Act.

The requirements involve customers who might be considered politically exposed persons.

Read on for more details about the compliance clarification from the Federal Reserve, the Federal Deposit Insurance Corp., the Financial Crimes Enforcement Network, the National Credit Union Administration, and the Office of the Comptroller of the Currency.

Federal financial regulators announced they finalized a trio of rules which were identical, or substantially similar, to interim final rules issued earlier in the year.

Among the three is a rule which allows institutions that adopt the current expected credit losses (CECL) accounting standard in 2020 to mitigate the estimated effects of CECL on regulatory capital for two years.

Read on for more details from the announcement.

The Federal Deposit Insurance Corporation (FDIC) approved a new proposed statement of policy to enhance efforts to encourage and preserve Minority Depository Institutions (MDIs).

The FDIC said the changes would update, strengthen and clarify policies and procedures related to the existing MDI framework.

Read on for more information about the proposed statement.

The Federal Deposit Insurance Corp. (FDIC) announced that it will propose replacing the current Supervision Appeals Review Committee with an independent, standalone Office of Supervisory Appeals within the agency.

The newly created office would have final authority to resolve appeals, the FDIC stated.

Read on for more details from the proposal.

In the midst of a pandemic and a recession, the banking industry continued to prove its strength, the Federal Deposit Insurance Corp. (FDIC) reported.

In its Quarterly Banking Profile of the second quarter of 2020, the FDIC reported the banking industry posted $18.8 billion in profits. That is the 42nd consecutive quarter in which the banking industry has reported profits, according to the regulator, dating back to the fourth quarter of 2009.

Read on for details from the report, as well as reaction from the FDIC and industry trade associations.

Could a centralized organization which provides certifications help ease the process of vendor management between financial organizations and third parties?

That’s the question the Federal Deposit Insurance Corp. is hoping to find answers to after recently issuing a request for information about the creation of a standards setting organization which would ease the onboarding process for institutions.

Read on for details of the request and information from agency officials including Chairwoman Jelena McWilliams and deputy director Leonard Chanin.

Federal banking regulators issued a joint statement updating existing guidance on compliance with the Bank Secrecy Act and anti-money laundering rules.

The agencies said the statement clarifies what generally are not considered the kinds of problems that would result in an enforcement action.

Read on for more details from the announcement.

As loan accommodations related to the pandemic expire and change, the Federal Financial Institutions Examination Council issued guidance for institutions on risk management and consumer protection principles to follow as they work with borrowers and consider additional accommodations.

The guidance also directed institutions on reporting requirements and internal control systems.

Read on for details from the agencies’ guidance.

Federal Deposit Insurance Corp. Chairwoman Jelena McWilliams and Ohio Lieutenant Gov. Jon Husted highlighted the Community Bankers Association of Ohio’s 46th annual convention.

For the first time, the convention was conducted virtually, to a reported group of more than 400 community bankers from Ohio and West Virginia.

Read on for highlights from those and other presentations during the show.