ABA Banking Journal
July 16, 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.

REONOMY®
What can Institutional Managers’ activities reveal about lending recovery?
It is no secret that hospitality has suffered a fair deal in the wake of the pandemic.  As investors and lenders evaluate their portfolios in the wake of the pandemic, uncertainty persists, casting particular attention to the importance of cash management surrounding hospitality assets. According to recent data published by Reonomy, the factors most heavily influencing the divergent nature of this asset type are both geography and classification. 
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Industry News
Risk management doesn’t always mean defending the bank from outside forces. Just like in horror movies, it can get a lot scarier when the threat comes from inside the house. 
 
The Bank On movement for financial inclusion continues to accelerate. In July, the Cities for Financial Empowerment Fund—which developed the Bank On standards and which certifies deposit accounts that meet them—announced that more than 100 depository institutions now offer Bank On-certified accounts.
 
ABA has released a report on cryptocurrency for bankers that discusses its origins, uses, technological underpinnings and the industry surrounding it. The report also includes information on existing and emerging regulatory issues around cryptocurrency, what to expect in the next year as well as some considerations for banks as they approach the crypto sector.
 
Data Center, Inc. (DCI)
Western Union Business Solutions
The number of Bank On-certified accounts has nearly doubled since October 2020, when, at ABA’s Annual Convention, ABA President and CEO Rob Nichols encouraged all banks to offer a certified account.  
 
Greg Cunningham still vividly remembers the long and meaningful conversation he had on May 26, 2020 with his CEO, U.S. Bancorp’s Andrew Cecere.
 
Now that most of the country is emerging from a year-long lockdown, we can look back with a fresh eye to see what we learned, and which innovations are likely to persist.
 
Jack Henry & Associates, Inc.®
Grow Your Commercial Base
Need efficiencies and growth in your commercial base today? If so, you are not alone. Many banks are still relying on manual processes, siloed data systems, and error-prone spreadsheets to process escrow deposits. But now you can utilize an online deposit escrow management system as part of an efficient digital strategy. Don’t miss this prime opportunity to gain efficiencies and generate new revenue streams.
Video: Attract new commercial customers with online escrow deposit management.
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Policy News
The Commodities Futures Trading Commission’s Market Participants Division and Division of Market Oversight emphasized to market participants and swap execution facilities the importance of an orderly transition away from Libor. 
 
ABA has issued a members-only staff analysis of the government-wide policy priorities for anti-money laundering and countering the financing of terrorism that the Financial Crimes Enforcement Network released June 30.
 
The Federal Reserve, FDIC and OCC are seeking comments on a joint proposal designed to manage risks associated with third-party relationships, including relationships with financial technology-focused entities.
 
Wolters Kluwer Financial Services
Capco
As part of regulators’ efforts to facilitate the ongoing transition away from Libor, the Commodity Futures Trading Commission’s Market Risk Advisory Committee today recommended “SOFR First” as a market best practice.
 
Testifying before House lawmakers, Federal Reserve Chairman Jerome Powell maintained that the Fed’s overall monetary policy stance remains “appropriate” even amid rising inflation concerns, and that “patience” will characterize the agency’s approach moving forward. 
 
ABA, the Consumer Bankers of America and the National Association of Federally Insured Credit Unions urged the Fed to outline specific capital, liquidity and risk management requirements for master account access.
 
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.

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Training

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

August 2 - 13
Virtual School: Risk Management School - Foundational

August 2 - September 3
Facilitated Training: Managing the Bank's Investment Portfolio

August 4
Webinar: Understanding Blockchain and Cryptocurrency

August 16 - September 10
Facilitated Training: Marketing Planning

August 17
Webinar: Managing Compliance Under Pressure

August 17 - 19
Virtual School: 2021 Payments Strategy School

August 17 - 27
Virtual School: Risk Management School - Advanced

 
 

 

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