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This ABA Banking Journal newsletter is a free, twice-monthly supplement to the ABA Banking Journal magazine intended to help you stay on top of industry and policy news.
You can also stay abreast of banking news by visiting aba.com/BankingJournal, home to ABA Daily Newsbytes stories, digital exclusives, the ABA Banking Journal Podcast and more.
In this excerpt from Community Conversations: A Field Guide for Banks, recently released by the ABA Foundation, KeyBank shares its purpose to help clients, colleagues and communities thrive.
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As our industry faces an onslaught of new regulations, tough economic conditions and increased competition for market share, there’s no denying that the future is challenging. But there’s also another future we have to prepare for: the future of work.
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Private-credit funds have long supported middle-market businesses, typically providing debt below banks’ senior debt in a borrower’s capital structure. Since the pandemic, however, private credit has increasingly lent at the senior level and encroached on other traditional bank markets, raising questions for banks about whether the shift is cyclical or a more permanent one that requires rethinking their own business models.
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Consumers everywhere see and hear credit union marketing campaigns, and according to a recent ABA DataBank post from ABA’s Dan Brown and Robert Flock, credit unions spend more than double what comparable banks do on marketing as a percentage of net income. On this episode, Brown and Flock break down the legislative and regulatory history of fields of membership and how the average credit union has more than doubled its “potential membership" in the last decade.
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It is no secret that the OCC has stepped up efforts around how banks oversee third-party risk and is cracking down on firms that cannot demonstrate cohesive and effective end-to-end management of their suppliers, especially around critical processing.
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Checking accounts may not be the most glamorous of financial products. But ask any banker or regulator to identify the cornerstone of a strong, stable institution and most will say it is a portfolio of retail checking balances.
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The ABA and 11 associations have urged the FDIC to extend by 60 days its request for public input on deposit data not currently reported in call reports or other regulatory reports, including uninsured deposits.
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The Securities and Exchange Commission has adopted revised standards regarding the general responsibilities of auditors and the use of technology-assisted analysis in conducting audits. It also adopted amendments to a Public Company Accounting Oversight Board ethics rule governing the liability of individuals who contribute to audit firm violations.
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Smaller banks, including community banks, are indispensable in providing access to financial products and services, especially in remote or rural areas of the U.S., Federal Reserve Governor Michelle Bowman said recently, speaking to the Alaska Bankers Association.
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An FDIC proposal to expand the definition of “deposit broker” would significantly alter the agency’s brokered deposit regulatory framework and reverse existing interpretations of law, all without sufficient data or a robust rationale to support the changes, the ABA and 10 financial sector associations said in a joint letter to the agency.
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A recent proposal by the Financial Crimes Enforcement Network to renew its customer identification program requirements dramatically underestimates the number of new bank accounts opened each year and, as a result, underestimates the compliance burden of the rule on banks, the ABA said in a letter to the agency.
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Many banks, especially smaller banks, do not have the resources or staffing to apply for funding through the Federal Home Loan Banks’ Affordable Housing Program, so efforts to streamline the process are welcome, ABA said in a letter to the Federal Housing Finance Agency.
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