ABA Banking Journal
July 17, 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
According to the latest data from Freddie Mac, the 30-year fixed-rate average tumbled to 2.98 percent with an average 0.7 point. It was 3.03 percent a week ago and 3.81 percent a year ago. Since November 2018, when it was 4.94 percent, it has fallen nearly two percentage points. The 30-year fixed rate is at its lowest level since Freddie Mac began tracking mortgage rates in 1971. (Washington Post)
The Consumer Financial Protection Bureau released a study of the effects of so-called credit-builder loans on credit scores. These loans are designed to allow individuals with no credit files or poor credit histories to build or repair credit. “Overall, the results suggest that the CBL worked as intended for people without existing debt, but not for consumers who already had debt,” the bureau found. (ABA Banking Journal)
Raphael Bostic, president and CEO of the Atlanta Federal Reserve Bank, says racism is a danger to the health of America's economy. In a recent opinion piece, Bostic reflected on the recent protests against police brutality that he says are fueled, in part, by economic inequalities that stem from systemic racism. (NPR)
Economic activity rose with all Districts reporting increased activity, but remained well below pre-pandemic levels according to the newly-released Federal Reserve Beige Book. The report was based on information collected through July 6, 2020. (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
The Departments of Treasury, Labor, and Health and Human Services issued a proposed rule to amend the requirements for grandfathered group health plans to preserve their grandfather status while offering new flexibility to make changes to their plan designs. (ABA Banking Journal)
In a comment letter to the National Credit Union Administration, ABA called for the withdrawal of a proposal that would allow large credit unions to issue subordinated debt for regulatory capital purposes from outside for-profit investors—such as corporate debt markets—while maintaining their tax-exempt status. (ABA Banking Journal)
The Supreme Court’s recent denial of ABA’s appeal in a case challenging the National Credit Union Administration’s 2016 field of membership rule “is another unfortunate step toward America’s credit unions becoming nothing more than banks that refuse to pay federal income taxes,” ABA Chair Laurie Stewart said. (ABA Banking Journal)
Following the Supreme Court decision in Seila Law v. CFPB—which held that the bureau may continue to operate but that its single powerful director must be able to be removed at will by the president—the CFPB ratified most regulatory actions it has undertaken between Jan. 4, 2012, and June 30, 2020. (ABA Banking Journal)
Appraisal Institute
Cummins Allison
Columbia Business School Executive Education®
The Strategic Leader Program (Live Online): How to Excel as Your Responsibility Increases
Designed for leaders transitioning to senior executive roles, this six-day program from Columbia Business School Executive Education broadens your knowledge, perspective, and understanding of strategic leadership, equipping you to deal with the demands of the more complex and disruptive environment of tomorrow.
The program offers concepts and tools that will enable you to enhance your personal, strategic, and interpersonal effectiveness.
The program begins October 4.

Learn More

July 20 - November 6
Facilitated Online Training: General Accounting

July 22
Webinar: CRM Explained and How It Drives Engagement and Sales

July 27 - November 13
Facilitated Online Training: Analyzing Financial Statements

July 27 - August 28
Facilitated Online Training: Introduction to Trust Products and Services

July 28
Webinar: The Cybersecurity and Digital Banking Benefits of .BANK

July 28-30
Live and On-Demand: Risk and Compliance Virtual Conference

July 29
Webinar: Growth Strategies for Any Economic Environment

August 3 - October 23
Facilitated Online Training: CTFA Exam Online Prep

August 3 - September 4
Facilitated Online Training: Managing the Bank's Investment Portfolio

August 3 - 28
Facilitated Online Training: Building Customer Relationships

August 12
Webinar: Critical Risk Management Issues and Insights for Corporate Trustees

August 13
Webinar: The ABCs of Open APIs: The Opportunity for Your Bank

Coronavirus News
When COVID-19 accelerated customer movement into mobile and online banking solutions, and triggered consumers to push their funds into bank accounts, banks that had made investments in the digital customer experience were positioned to capitalize. (ABA Banking Journal)
Anywhere from 20% to 60% of jobs in each state were supported by banks through the PPP.
This infographic shows the number of jobs supported by banks, as a share of each state's total civilian labor force. (ABA Banking Journal)
Federal Reserve Governor Lael Brainard warned of heightened uncertainty “as long as the pandemic hangs over the economy.” She pointed to spikes in reported COVID-19 cases in recent days as many state economies began to reopen, noting that recent improvements in the labor market may not be sustained if widespread shutdowns are again needed to contain the outbreaks. (ABA Banking Journal)
The Financial Stability Board will undertake a holistic review of the market volatility that followed the initial outbreak of COVID-19 earlier this year, according to a new report. (ABA Banking Journal)
ABA joined a broad coalition of nearly 150 trade associations and advocacy groups in strong support of a bipartisan bill that would expedite the forgiveness process for most borrowers who received loans through the Small Business Administration’s Paycheck Protection Program. The Paycheck Protection Program Small Business Forgiveness Act would allow PPP loans of $150,000 or less to be automatically forgiven once the borrower completes a one-page forgiveness document. (ABA Banking Journal)



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