Welcome to the ABA Banking Journal newsletter, 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
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)
Visit http://bankingjournal.aba.com/2016/12/compliance-issues-to-watch-in-2017/ to view the full article online.
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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)
Visit https://www.bloomberg.com/quicktake/shadow-banking to view the full article online.
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Policy News
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)
Visit http://bankingjournal.aba.com/2016/12/cfpb-outlines-fair-lending-priorities-for-2017/ to view the full article online.
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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)
Visit http://bankingjournal.aba.com/2016/12/fed-approves-final-tlac-rule/ to view the full article online.
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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)
Visit http://bankingjournal.aba.com/2016/12/federal-regulatory-agencies-issue-cecl-faqs/ to view the full article online.
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