Business Trades Support Bank Capital Rule Reform to Boost Economic Growth
ASHINGTON,—A coalition of leading business trade organizations urged prudential regulators to examine and modernize large bank capital requirements to ensure they support consumers, businesses, and the U.S. economy. The organizations, which represent a wide range of stakeholders, including small businesses, manufacturers, and farmers, highlighted the negative impact of inappropriately calibrated requirements on economic growth and…
Bank Economists: Credit Outlook Improves Amid Continued Softening
WASHINGTON,—While the outlook for credit conditions over the next six months has improved, bank economists expect continued softening in credit quality and availability given the prospect of persistent labor market headwinds, according to the American Bankers Association’s latest Credit Conditions Index. ABA’s Credit Conditions Index is a suite of indices derived from the quarterly outlook…
ICBA Opposes PayPal ILC Bid
WASHINGTON,—The ICBA has expressed strong opposition to PayPal’s application to form an industrial loan company—a type of financial institution that receives federal deposit insurance while avoiding full regulatory oversight. The ICBA insists the FDIC should deny ILC applications from PayPal and other Big Tech companies and not allow these nonbank firms to benefit from the…
ICBA Opposes OCC’s Approval of Five National Trust Charter Applications
WASHINGTON,—The Independent Community Bankers of America (ICBA) has expressed opposition to the Office of the Comptroller of the Currency’s conditional approval of five national trust bank charter applications from nonbank fintechs. ICBA has repeatedly said in letters to the OCC that the agency lacks statutory authority to expand trust powers under Interpretive Letter #1176 and…
ICBA Analysis: Permitting Interest on Payment Stablecoin Holdings Would Reduce Community Bank Lending by $850 Billion
WASHINGTON,—As Congress crafts legislation to establish a regulatory framework for digital assets markets, the ICBA has released new data showing the harmful impact on local economies of allowing crypto exchanges, affiliates, and other intermediaries to pay interest, yield, or rewards on payment stablecoin holdings. Based on macroeconomic modeling from new industry research, ICBA estimates that…
Banks Submit Recommendations for GENIUS Act
WASHINGTON,—The American Bankers Association, Bank Policy Institute, Consumer Bankers Association, Financial Services Forum and The Clearing House Association have responded to a U.S. Department of the Treasury Advance Notice of Proposed Rulemaking on its implementation of the Guiding and Establishing National Innovation for U.S. Stablecoins Act (GENIUS) Act. The submission asks Treasury to develop regulations…
ICBA Supports Lowering Community Bank Leverage Ratio
WASHINGTON,—The ICBA and the nation’s community bankers have commended the FDIC board of directors for the proposed rule to lower the Community Bank Leverage Ratio, as advocated since regulators rescinded CBLR relief at the end of 2021. Reducing the CBLR from 9% to 8% will provide community banks additional room on their balance sheets to…
Mega-Credit Union Acquisition Demands Response
WASHINGTON,—The ICBA has issued a statement on the latest acquisitions of a tax-paying community bank by a tax-exempt credit union. “With large tax-exempt credit unions announcing two acquisitions of Main Street community banks in as many days following last year’s record number of deals, ICBA and the nation’s community bankers continue our call for policymakers…
Bank Customers Continue to Use Mobile Apps
WASHINGTON,—For the sixth year in a row, U.S. consumers are conducting their banking via mobile apps more than any other method, according to a new survey conducted by Morning Consult on behalf of the American Bankers Association. The national survey found that consumers continue to embrace digital banking channels: 54% of bank customers use apps…
Congress Should Hold Credit Unions Accountable
WASHINGTON,—With 20 years having passed since Congress last held a hearing to conduct oversight of the federal tax exemption that credit unions receive, a new survey conducted by Morning Consult on behalf of the American Bankers Association finds that a wide majority of U.S. consumers (67%) believe that Congress should reexamine the tax-exempt status of…