Regulator
FDIC Issues Guidance on Deposit Insurance Coverage for Transaction Accounts
The FDIC issued a Financial Institution Letter (FIL-45-2012) to guide banks on how to notify their customers about the expiration of temporary unlimited deposit insurance for noninterest-bearing transaction accounts on Dec. 31 should Congress fail to extend the deposit insurance coverage beyond this year. Absent Congress changing the law to extend the sun-setting coverage, the guidance says that banks should remove any notices placed on their main offices, branches or websites about the temporary insurance coverage program.

The FDIC’s guidance encourages banks, as a matter of prudent commercial practice, to remind depositors that would be affected by the coverage change about the year-ending expiration. Banks may use any reasonable method to remind depositors, such as sending written notices as separate letters or within regular account statements. The guidance offers some model language for notices. Also, it advises banks to review all their account statements and disclosures statements to ensure all their documents on or after Jan. 1 accurately reflect FDIC insurance coverage they provide. Banks are also reminded that, in accordance with state law, sufficient collateral should be set aside to secure accounts of government depositors to the extent those accounts exceed $250,000 after Dec. 31.



Go Local®
Go Local Initiative Is Spreading Holiday Cheer
Today, ICBA’s Go Local initiative launches “Go Local for the Holidays.” The campaign encourages shoppers to Go Local this holiday season and do at least 30 percent of their shopping at area small businesses. By doing so, consumers will be supporting small businesses that create local jobs and fuel economies, ultimately helping community banks and local entrepreneurs thrive.

Community banks can participate throughout the holiday season by using marketing resources, customizable press releases and op-eds, talking points, sample social media posts, and logos on the Go Local website. The website also has a fresh, redesigned look that is easier to navigate and more appealing to consumers, small businesses, media, and community banks that are either using or planning to use the campaign. The site also features the all new Go Local blog with posts from those who support the Go Local message. 

To learn more about ICBA’s Go Local holidays initiative and ways to promote local holiday shopping, visit www.icba.org/golocal, and to join the conversation, follow @ICBA on Twitter and the hashtag #golocal.


Regulator

CFPB Launches College Credit Card Agreement Database
The Consumer Financial Protection Bureau released the 2012 Annual Report to Congress on College Credit Card Agreements, as well as an individual agreements database, via blog post last week. The report shows that the majority of college credit card agreements are between issuers and affiliated organizations, such as fraternities, sororities, alumni associations, or foundations affiliated with or related to an institution of higher education.

From 2009-2011, the data shows that the number of agreements, total number of accounts open at year-end, amount of payments by issuers to the university, and number of new card accounts opened during the year all declined.


Member Spotlight
Local Va. Community Bank Provides AirCharity®
In the wake of Hurricane Sandy, MainStreet Bank of Herndon, Va. has established AirCharity to assist in donation efforts for those who were affected by the damaging storm. One hundred percent of AirCharity donations will benefit the American Red Cross Hurricane Sandy Relief Fund, and MainStreet Bank is covering all the processing costs for donations. Find out more.


Economy
Non-Manufacturing Sector Grows in October
Economic activity in the non-manufacturing sector expanded in October for the 34th straight month, according to the Institute for Supply Management’s non-manufacturing index. The Non-Manufacturing Business Activity Index was at 55.4 percent, which is 4.5 percentage points lower than September’s report. The New Orders Index decreased 2.9 percentage points to 54.8 percent, and the Employment Index increased by 3.8 percentage points, which indicated growth in employment for the third consecutive month.


Poll
Take This Week’s Quick Poll
Take this week’s Quick Poll on the new format of ICBA NewsWatch Today, and view results from the previous poll on residential real estate lending.  View the Archive.


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