ABA Banking Journal
June 5, 2020

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
Even if your bank’s website is in dire need of a redesign, now is not the time. But a few key changes will go a long way to improving your site for both you and your customers. (ABA Bank Marketing)
The nation’s top economists forecast that the economy will experience a 6% contraction in 2020, with conditions beginning to recover sometime around the third quarter after a sharp second-quarter decline, according to the American Bankers Association’s Economic Advisory Committee. (ABA Banking Journal)
Acting Comptroller of the Currency Brian Brooks will focus on promoting “responsible innovation” in the banking sector and continuing OCC modernization, he said in a statement upon taking office from former Comptroller Joseph Otting. (ABA Banking Journal)
Data Center, Inc. (DCI)
Computer Services Inc
Jack Henry & Associates, Inc.
New Deposits at a Fraction of the Cost
By utilizing two key Jack Henry solutions, the SilverLake System® core processing platform and the Banno Digital Platform™, St. Louis-based Midwest BankCentre launched a separately branded digital institution (Rising Bank) in only six months. In its first year, Rising gathered over $130 million in new deposits at a fraction of the cost of traditional branch banking.

Read the Celent case study.
Policy News
While the Federal Reserve continues to support the Secured Overnight Financing Rate as the Alternative Reference Rates Committee’s preferred alternative to the London Interbank Offered Rate, Fed Chairman Jerome Powell said that Ameribor is a “fully appropriate” alternative for banks when it reflects their cost of funds. (ABA Banking Journal)
As governors and municipal officials make decisions on reopening local economies in the wake of the coronavirus pandemic, Acting Comptroller of the Currency Brian Brooks warned them about the long-term risks of so-called lockdown orders on the financial system. (ABA Banking Journal)
The OCC issued a long-awaited final rule affirming that permissible interest on a loan made by a national bank or federal thrift remains valid when the loan is transferred or sold, codifying the “valid when made” principle for nationally chartered banks. (ABA Banking Journal)
The Federal Housing Finance Agency has finalized several changes to the housing goals for the Federal Home Loan Banks. (ABA Banking Journal)
Appraisal Institute
Cummins Allison
Newgen Software Inc
Anxious about dealing with the PPP loan forgiveness process challenges?
Here’s how financial institutions, like yours, can overcome challenges and help small businesses:
· Proactive customer communication
· Forgiveness data assessment
· Process automation
· Risk and compliance management
Newgen can help. Watch a demo
Coronavirus News
The Small Business Administration still has around $110 billion left for businesses seeking possibly forgivable loans through the Paycheck Protection Program, but the flow of new applications is slowing. ABA Chair Laurie Stewart, president and CEO of Seattle-based Sound Community Bank, shares her perspective on how the landscape has changed since the beginning of the COVID-19 pandemic. (NPR Marketplace)
Proactive risk management can protect banks participating in the SBA lending program. (ABA Risk & Compliance)
The Senate has unanimously passed a bipartisan bill that would provide greater flexibility for Paycheck Protection Program borrowers. Having cleared the House last week, the Paycheck Protection Program Flexibility Act now goes to the president to be signed. (ABA Banking Journal)
Through the Small Business Administration’s Paycheck Protection Program, banks delivered the biggest economic rescue program in U.S. history. Luke Bernstein, EVP at Orrstown Bank in Orrstown, Pennsylvania, discusses his bank’s PPP lending. (ABA Banking Journal)
The ABA joined with twelve consumer groups and banking industry organizations in supporting a bipartisan bill that would prevent CARES Act economic impact payments from being subject to garnishment by private debt collectors. The bill was introduced by Sens. Chuck Grassley (R-Iowa), Ron Wyden (D-Ore.), Sherrod Brown (D-Ohio) and Tim Scott (R-S.C.). (ABA Banking Journal)
Private payrolls fell by 2.76 million in May, according to a report Wednesday from ADP. Economists had been expecting a decline of 8.75 million, but the reason for the wide disparity was not immediately clear. The total comes on top of a plunge of 19.6 million in April, the worst in the survey’s history. (CNBC)



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