A new calculator released by federal regulators allows every community bank to estimate the impact of the proposed rules released in June. ICBA is encouraging community banks to use the calculator and write a comment letter by the Oct. 22 comment deadline describing how the Basel III proposal will affect their risk-based capital ratios.
Guidelines for drafting a comment letter, including a template and insertable talking points, can be found on the ICBA website. ICBA also continues to call on community bankers to sign its petition calling on regulators to exempt community banks from the Basel III proposals.
Advocacy ICBA Again Advocates Muni Advisor Exemption ICBA again called on lawmakers to advance legislation to exempt community banks from proposed municipal advisor regulations. The association has been a strong advocate for legislation to prevent community banks and their employees from having to register as municipal advisors with and be examined by the Securities and Exchange Commission.
In a letter to Sens. Pat Toomey (R-Pa.) and Thomas Carper (D-Del.), ICBA wrote that S. 3492’s exemption would allow community banks to continue providing traditional banking services to the municipal governments of the communities they serve. Community banks have long provided these services, such as demand deposits, certificates of deposit, cash management services, loans and letters of credit, ICBA wrote.
The House recently passed similar ICBA-advocated legislation (H.R. 2827). The Senate version of that bill (S. 3620), which ICBA supports, also has been introduced. ICBA will continue to urge final passage of legislation that includes the exemption when Congress returns to Washington for its lame duck session following the November elections.
Association ICBA Comments on NACHA P2P Proposal ICBA expressed support for a proposed amendment to the NACHA operating rules that would standardize the use of the ACH Network for person-to-person (P2P) credit payments. However, ICBA wrote in a comment letter that the proposed P2P credit definition is too restrictive. The association also wrote that P2P credit transactions should be sent by both consumers and small businesses because most community banks use the same online channel for consumer and small business customers.
The association strongly encouraged NACHA to reconsider same-day ACH processing and settlement to support a competitive P2P offering. ICBA also made specific recommendations to clearly identify P2P transactions and urged NACHA to remain mindful of the potential for P2P transaction fraud.
Regulation FDIC Board Meeting on Regulating Big Banks The FDIC board of directors announced it will meet next week to provide a Deposit Insurance Fund update and advance regulations on larger institutions. At the meeting, scheduled for 10 a.m. Tuesday, Oct. 9, the board will discuss a final rule to implement stress-testing requirements on covered financial institutions with $50 billion in assets. The board also will discuss a final rule to implement the large bank assessment system.
Regulation OCC’s Curry Warns of Third-Party Data Breaches Banks and thrifts facing increasing pressure on their bottom line shouldn’t cut corners on information security, Comptroller of the Currency Thomas Curry said. Speaking at the Bank Information Technology Training Conference in Atlanta, Curry said that information technology can help offset the costs of regulatory reporting requirements. However, these changes require major upgrades to IT infrastructures that can affect how these systems perform.
Curry warned against stretching systems and processes beyond their capacity, which would eventually cause them to break down and leave sensitive information at risk. Banks and thrifts have repeatedly found themselves the victims of lax security by third parties, Curry said, which puts the reputations of these institutions at risk.
Economy Regulators Release Quarterly Call Report Materials Federal banking regulators released call report materials for the Sept. 30 report date. Except for certain institutions with foreign offices, completed call reports are due by Tuesday, Oct. 30. No extensions are granted. The regulators encouraged financial institutions to refer to this quarter’s supplemental instructions for additional guidance on certain reporting issues.
Poll Take This Week’s Quick Poll Take this week's poll regarding community banks and violations of the Regulation E ATM disclosure placard requirements, and view results from the previous poll on mobile phone use.