ABA Banking Journal
December 18, 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.

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Manage Increased Loan Volume by Automating Document Collection Processes
Work has changed. But has it changed enough? For some, dramatic retooling has provided significant benefits. For others, it simply has mimicked traditional processes in a digital model, producing a “garbage in, garbage out” situation. Leading lenders have not only survived but thrived and part of the winning combination has been aligning digital evolution to business priorities
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Industry News
In light of the challenges throughout 2020, a high compliance priority will be ensuring that your interactions with your borrowers are above reproach.
 
The year 2020 was like no other, but 2021 presents its own set of unique challenges for bank marketers.
 
The Federal Reserve will continue to keep its target range for the federal funds rate at zero to 0.25% as the economy remains well below levels of output seen at the start of the year, even as economic recovery continues, the Federal Open Market Committee said.
 
Data Center, Inc. (DCI)
Computer Services Inc
A surge of liquidity and prolonged period of low interest rates are creating new questions for balance sheet management.
 
The FDIC has released a large-scale Community Banking Study that examines community bank performance between year-end 2011 and year-end 2019.
 
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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Policy News
While financial regulators flagged an increase in leveraged lending prior to the outbreak of COVID-19, a new report from the Government Accountability Office  found that as of September, “they had not found that leveraged lending activities had contributed significantly to widespread financial instability.”
 
A move by the National Credit Union Administration to allow large credit unions to issue subordinated debt for regulatory capital purposes from outside for-profit investors—such as corporate debt markets—while retaining their tax exemption would undermine the statutory principle that credit unions should serve consumers of small means, ABA President and CEO Rob Nichols wrote in an American Banker op-ed.
 
ABA and several housing industry groups urged the Department of Treasury to ensure that reforms for Fannie Mae and Freddie Mac are locked in before conservatorship ends for the government sponsored enterprises.
 
Appraisal Institute
Cummins Allison
Bank-like activity by nonbanks that poses financial stability risks grew by 11.1% to total $57.1 trillion in 2019, according to the Basel, Switzerland-based Financial Stability Board today—a return to the decade-long trend line of growth after a slower rate of increase in 2018.
 
Small entities expected to be affected by the Consumer Financial Protection Bureau’s Dodd-Frank Section 1071 rulemaking recommended that the CFPB prioritize simple options in rulemaking, with clear written guidance and alignment definitions and reporting with other federal data regimes.
 
Columbia Business School Executive Education®
Driving Strategic Impact (Live Online)
This five-day virtual program will enable you to acquire tools used by top-tier consulting firms to become more effective at analyzing and resolving strategic problems for your organization and clients.

The program is organized around the core skill of structured problem solving, which takes participants through five phases: defining the problem, structuring the problem, conducting analysis, developing recommendations, and communicating for impact.

The program begins May 3.

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Training

January 4-29
Facilitated Training: The Banking Industry

January 7 
Webinar: New Opportunities in Ag Banking

January 11 - February 5
Facilitated Training: Marketing in Banking

January 11 - March 19
Facilitated Training: Introduction to Mortgage Lending

January 19 - March 12
Facilitated Training: Introduction to Agricultural Lending

January 21
Webinar: Wealth Management Strategies for Market Fluctuations

January 25 - February 19
Facilitated Training: Bank Lines of Business

 
 

 

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