Federal financial regulators addressed the role of private entities in cultivating an effective landscape for innovative payment approaches, while also taking care to ensure consumers are protected in the event of one institution’s recent financial hardships. Learn about these matters and more in this regulatory roundup:
Federal Reserve governor talks payments at TCH conference
Federal Reserve Gov. Christopher Waller spoke about the role of private-sector leadership in the payments sector during The Clearing House’s annual conference, arguing that government intervention should be limited to instances where there are clear market inefficiencies that only government can address. Waller illustrated lessons learned from historical situations where private efforts were insufficient to maintain a stable payment system, as well as the role of the Federal Reserve in enhancing payment system resilience. He noted recent innovations, like the FedNow payment platform and cross-border payment projects that illustrate coordinated efforts between private and public entities. Ultimately, Waller advocated for a collaborative approach that respects private-sector primacy in innovation while acknowledging instances where federal action is essential for system-wide stability and efficiency. Read his full remarks here.
Florida credit union placed under NCUA conservatorship
Florida’s Office of Financial Regulation placed Alliance Credit Union under the conservatorship of the National Credit Union Administration. During its conservatorship, the federally insured, state-chartered credit union’s 5,394 members will remain protected by the National Credit Union Share Insurance Fund. Call Report data indicated loan growth at Alliance increased by nearly $13 million from 2019 to 2023 and its assets increased by more than $10 million in that time. However, the credit union posted a more than $2.3 million in losses through the first three quarters this year. Learn more about this matter here.
FHFA announces partnerships involving enterprises, FHLBanks
The Federal Housing Finance Agency (FHFA) announced a pair of partnerships involving Fannie Mae, Freddie Mac, and Federal Home Loan Banks (FHLBanks) intended to increase awareness and liquidity for programs that expand housing access for tribal communities. Through one partnership, the FHLBank of Des Moines will promote a Freddie Mac mortgage product geared toward improving credit access for federally recognized Native American tribes. Through the other, Fannie Mae will purchase loans originated through the FHLBank Mortgage Partnership Finance (MPF) program — administered by the FHLBank of Chicago — to bolster mortgage liquidity for tribal communities. Learn more about these partnerships here.
FDIC publishes list of banks examined for CRA compliance
The Federal Deposit Insurance Corp. (FDIC) issued a list of state nonmember banks recently evaluated for compliance with the Community Reinvestment Act (CRA), including evaluation ratings assigned to institutions in August. The list includes 51 banks spread across the country. Most of the banks received “satisfactory” ratings with a few exceptions. Three institutions were rated as “needs improvement” while one bank performed exceptionally well. NorthEast Community Bank of White Plains, N.Y. earned an “outstanding” rating for its CRA compliance efforts. Find out more here.