ABA Banking Journal
July 2, 2021

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
Adopting multiple solutions, or “cloud bandwagoning,” is bound to create friction within a bank’s systems—resulting in unpredictable consequences.
 
The post-COVID economy is snapping back in a big way—and banks are ready to help entrepreneurs get back in the game. In the second of a two-part ABA Banking Journal Podcast series on the condition of small businesses post-COVID, banking leaders from around the country weigh in on ways that banks can partner with small businesses and aspiring entrepreneurs. 
 
With post-pandemic effects hindering many traditional CRE markets, developers are turning to multifamily housing to meet demand.
 
Data Center, Inc. (DCI)
Western Union Business Solutions
More and more Americans are embracing health savings accounts, especially younger and middle-aged adults. This episode of the ABA Banking Journal Podcast features Eric Remjeske of Devenir Research and Kevin McKechnie of the ABA HSA Council discussing new research findings showing that 63 million Americans are now covered by an HSA, with total assets over $82 billion.
 
Large banks continued to maintain strong capital levels under a hypothetical severe global recession and substantial stress in commercial real estate and corporate debt markets, according to the results of Dodd-Frank Act-mandated stress tests, the Federal Reserve said recently.
 
Agricultural lending by the nation’s farm banks dipped 1.8% to $98.6 billion in 2020 as demand for agricultural production loans declined slightly, according to ABA’s annual Farm Bank Performance Report. 
 
Jack Henry & Associates, Inc.®
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Policy News
As banks move to responsibly integrate artificial intelligence and machine learning capabilities into their business processes, ABA is urging regulators to focus on providing greater clarity around the use of AI and ensuring that there is a consistent regulatory standard for its use across all financial services providers.
 
Sens. Jerry Moran (R-Kan.), John Boozman (R-Ark.), Mike Rounds (R-S.D.), Kevin Cramer (R-N.D.) and Roger Marshall (R-Kan.) introduced S. 2202, the ABA-backed Enhancing Credit Opportunities in Rural America Act of 2021, which would end the taxation of interest earned from agricultural real estate loans.
 
As expected, the Consumer Financial Protection Bureau has finalized a rule to facilitate streamlined loan modification efforts and establish a temporary COVID-19 emergency pre-foreclosure period under Regulation X that would prohibit servicers from making the first notice or filing required to initiate foreclosure until Dec. 31.
 
Wolters Kluwer Financial Services
Capco
The Financial Crimes Enforcement Network signaled that it intends to move ahead with rulemaking to establish a no-action letter process.
 
In a surprise announcement at a mutual bank virtual forum co-hosted by the FDIC and OCC, a Federal Reserve official announced that the Federal Reserve has, via interpretive letter, determined that OCC-regulated savings associations that choose to exercise the option to become a “covered savings association” under Section 206 of the 2018 S. 2155 regulatory reform law will now be treated as national banks for purposes of regulation by the Federal Reserve.
 
The FDIC has outlined a modified approach to implementing its rule requiring insured depository institutions with $100 billion or more in total assets to submit resolution plans.
 
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Training

July 6 - 30
Facilitated Training: The Banking Industry

July 6 - October 22
Facilitated Training: Consumer Lending

July 8
Webinar: Best Practices for Monitoring Servicing Performance

July 12 - September 3
Facilitated Training: Introduction to Agricultural Lending

July 13
Virtual Conference: Women’s Leadership Symposium

July 14
Webinar: Best Practices for Conducting FCC Risk Assessments

July 15
Webinar: Involving Both Partners in Client Engagement

July 19 - November 5
Facilitated Training: General Accounting

July 22
Webinar: Blockchain, Crypto Assets and their Markets: A Challenge or Opportunity for Banks?

July 26 - August 27
Facilitated Training: Introduction to Trust Products and Services

July 28
Webinar: Strategies for Surviving Offsite Regulatory Examination

 
 

 

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