ABA Banking Journal
December 23, 2016

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 and other email bulletins.

Industry News
There are between 20 to 30 million small businesses in this country who employ more than half the U.S. workforce so it’s safe to say that when small business owners are feeling good it bodes well for the entire economy. So guess what? Small businesses are feeling good. At least, that’s the takeaway from two big reports released this week. (Washington Post)
 
Sales of previously owned U.S. homes unexpectedly increased in November to the strongest level since early 2007, ahead of a jump in borrowing costs, National Association of Realtors data showed Wednesday. (Bloomberg)
 
The regulatory front offers the possibility for meaningful regulatory relief, but the timetable for obtaining that relief is uncertain. Although ABA staff are working now with members to identify regulatory changes that will encourage economic growth, we may not see results immediately, says ABA SVP Virginia O’Neill, who leads the association’s Center for Regulatory Compliance. (ABA Banking Journal)
 
Roughly one-third of Americans say they are barely able to meet their basic living expenses, according to a new poll. Ten percent of Americans report that they cannot meet their basic needs financially, and another 24 percent report they have just enough to get by, according to a new McClatchy-Marist poll out last week. (The Hill)
 
QwickRate
Verint Systems
Bloomberg View columnist Noah Smith offers a list of 10 "excellent" economics books and papers from 2016 that should be accessible to the general public. (Bloomberg View)
 
It's larger than the world economy. It poses risks to financial stability. And its name conveys a sense of murkiness. "Shadow banking" is a catchall phrase that encompasses risky investment products, pawnshop and loan-shark operations and so-called peer-to-peer lending between individuals and businesses. (Bloomberg View)
 
John Williams, president of the Federal Reserve Bank of San Francisco, said his meetings with business leaders in recent weeks had been dominated by uncertainty about the economic plans of President-elect Donald J. Trump. (New York Times)
 
iGen Is Coming. Prepare Now.
Harland Clarke
The first wave of iGen (aka Generation Z) turns 21 in 2018. Their relationship with technology, combined with the expectations this relationship has fostered, poses big challenges for financial institutions.
Learn More
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Policy News
ABA President and CEO Rob Nichols, Chairman-Elect Ken Burgess and EVP James Ballentine met with House Financial Services Committee Chairman Jeb Hensarling (R-Texas) in Dallas last week to discuss regulatory reform plans for the 115th Congress. (ABA Banking Journal)
 
The Consumer Financial Protection Bureau will increase its efforts in 2017 to prevent credit discrimination and improve credit access, according to a blog post published on the CFPB website today. Specifically, the bureau will investigate "redlining" issues to determine whether lenders have intentionally avoided lending in minority neighborhoods. (ABA Banking Journal)
 
Computer Services Inc
Thomson Reuters
The Federal Reserve Board finalized a rule last week on how much total loss absorbing capacity, or TLAC, the eight U.S. global systemically important banks are required to hold. The purpose of the rule is to ensure that banks have a minimum level of long-term debt instruments that can be called upon should the company fail and need to be wound down rapidly. (ABA Banking Journal)
 
The federal regulatory agencies have published an FAQ document on the Financial Accounting Standards Board's Current Expected Credit Loss standard. The FAQs summarize key elements of the new standard, highlight changes to U.S. generally accepted accounting principles, provide regulatory perspective on CECL processes and methodologies and outline steps banks can take to prepare for implementation. CECL will be effective in 2020 for Securities and Exchange Commission registrants and in 2021 for all others. (ABA Banking Journal)
 
New Year, New Growth!
D+H
With 2017 here, banks are strategically planning how to reach new audiences, grow market share, and stay competitive. Is your core banking platform helping or hindering your progress? Download the free ebook, Digital Growth: The Paradox of Legacy Platforms, to learn more about the current state of digital banking and why banks are changing cores.
Learn how.
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