ABA Banking Journal
October 23, 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.

Coronavirus News
The crisis going on right now is a defining time for many banks, Jim Edwards said in his first speech as the ABA chairman.
 
Three in four consumers said they were satisfied or very satisfied with the banking industry’s response to the coronavirus pandemic, according to new survey research from Morning Consult.
 
Mantl
How Community Banks Can Build Resilience Amidst Uncertainty
Strategic digital transformations enable banks to embrace flexibility, ensuring they can offer customers new solutions, even during challenging times. With MANTL, your digital branch can be up and running in just 90 days.
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Credit goes to the Department of Treasury with their conclusion, documented in the Congressionally mandated study “The Current Expected Credit Loss Accounting Standard and Financial Institution Regulatory Capital” released last month. Tasked with assessing CECL’s impact on bank capital, the study concedes that it is too early to make conclusions related to CECL.
 
ABA and seven other financial trade groups urged Congress to address the Small Business Administration’s approach to loan forgiveness for borrowers that received both Economic Injury Disaster Loans and Paycheck Protection Program loans.
 
Data Center, Inc. (DCI)
Computer Services Inc
For banks that have experienced rapid and possibly short-term inflows of assets and deposits during the coronavirus pandemic, the FDIC today issued an interim final rule providing relief from auditing, internal control and audit committee requirements that would have resulted from those inflows.
 
While the pandemic-related recession was by far the deepest one in postwar history, “it also may go into the record books as the briefest recession in U.S. history,” Federal Reserve Vice Chairman Richard Clarida said recently.
 
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.
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Industry News
ABA Chairman Jim Edwards takes office at an unexpectedly difficult moment—and with a uniquely suited portfolio of skills.
 
On the latest episode of the ABA Banking Journal Podcast, Old National Bank’s Ben Joergens discusses his bank’s experience launching a Bank On-certified account.
 
Banks contribute to their communities and local organizations in ways that matter a lot during the pandemic.
 
Cash incentives work, but building your brand remains the long-term imperative.
 
Appraisal Institute
Cummins Allison
Policy News
The share of U.S. households that are unbanked continued falling in 2019, reaching 5.4%, the lowest rate yet recorded in the FDIC’s biennial How America Banks report. The figure fell from a high of 8.2% in 2011, but the report cautioned that the coronavirus pandemic—which took place after the survey was fielded—“is likely to contribute to a rise in the rate of unbanked households.”
 
ABA and the Bank Policy Institute jointly backed the FDIC’s proposed new independent Office of Supervisory Appeals in a letter to the agency.
 
In response to a 2018 petition from ABA and the Bank Policy Institute, the federal banking agencies have issued a proposal that would codify their joint statement clarifying that regulatory guidance does not have the force and effect of law.
 
Columbia Business School Executive Education
Leadership in Transformative Times (Live Online)
How should a leader operate in crisis conditions to help their organization survive and thrive?

Drawing on two of Columbia Business School Executive Education’s most prominent leadership faculty’s research, this virtual program teaches participants to approach the present crisis with authenticity and agility and to draw out the best in themselves and their teams in making the right strategic moves.

The program begins November 30.

Reserve Your Seat
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Training

October 26
Webinar: Safety and Soundness Exams During COVID-19: A Deep Dive with Bank Supervisors

October 26
Webinar: Stress Testing and CECL in Volatile Times

October 26 – November 20
Online Facilitated Training: Marketing Management

October 26 – November 6
Virtual Online School: Wealth and Trust School – Intermediate

October 27
Webinar: ABA Expert Webinar: Explore ABA’s Marketing & Communication Resources

October 27
Webinar: SEO Self-Assessment: Are Your Strategies Driving New, Qualified Customers?

October 29
Webinar: Understanding Credit Risk in Commercial Loan Origination

November 2 – March 5, 2020
Online Facilitated Training: Consumer Lending

November 2 – March 5, 2020
Online Facilitated Training: Money and Banking

November 4
Webinar: Digital Transformation for Community Bank Leaders

November 5
Webinar: Planning Opportunities and Pitfalls with Power

November 6
Virtual Conference: ABA/VBA Diversity, Equity and Inclusion Summit

November 30 – December 11
Virtual Online School: Wealth and Trust School – Advanced

Decemebr 8-10
Virtual Conference: ABA/ABA Financial Crimes Enforcement Conference

 
 

 

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