ABA Banking Journal
January 28, 2022

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
Credit loss estimation is complicated, and CECL’s lifetime loss objective makes it even more so. While a robust quantitative impact study is still needed, this study suggests the countercyclical regulatory transition mechanism should be made permanent.
Inflation surprises and labor market tightening necessitate an appropriate response from the Federal Reserve, says Ellen Zentner—chief U.S. economist for Morgan Stanley—in this episode of the ABA Banking Journal Podcast. With the ABA Economic Advisory Committee’s consensus forecast including three quarter-point rate hikes in 2022, the committee expects inflation to moderate but remain persistently high throughout the year.
As more customers engage with cryptocurrency, they are increasingly looking to banks to help them safely hold these assets. Banks are responding to this new customer demand.
Data Center, Inc. (DCI)
Western Union Business Solutions
By understanding the common aspects of cloud migration, banks can create a plan for adopting and deploying the most effective cloud solutions that maximize benefits while minimizing risks.
Community banks are keeping bank branches open, with 84% responding to a recent survey that they have not closed a single branch in the past 12 months. The State of Community Banking survey issued by consulting firm Wipfli also found that 32% of community banks have their farthest branches 10-20 miles from their headquarters and 23% have their farthest branches more than 41 miles away from their headquarters.
The pandemic has created many new challenges and changed the fraud risk landscape—perhaps permanently. It has also provided a training ground for a new generation of fraud attackers.
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Policy News
In a new blog post, the CFPB said it is “looking to use a long-dormant authority” under Dodd-Frank Act Section 1033, which relates to consumer access to financial records, “to help spur better credit card shopping and switching by proposing rules that give consumers more control of their financial data.”
A group of financial trade associations led by ABA urged the CFPB to conduct a study of consumers’ preferences on overdraft and release the findings for public comment before undertaking any additional actions related to overdraft practices.
As expected, President Biden has nominated Sarah Bloom Raskin to serve as vice chair for supervision at the Federal Reserve Board of Governors.
Wolters Kluwer Financial Services
Department of Agriculture Sec. Tom Vilsack testified before the House Agriculture Committee on the state of the rural economy and the upcoming reauthorization of the farm bill.
With regulatory scrutiny of climate change-related risks growing, Federal Reserve Governor Lael Brainard promised today that the Fed’s climate risk supervision will not include directives for banks not to lend to specific industries like oil and gas.
The pace of innovation in crypto is exciting and industry growth is an opportunity for banks but regulation is needed, OCC head says.
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January 31 - February 25
Facilitated Training: Building Customer Relationships

January 31 - May 20
Facilitated Training: Money and Banking

February 3
Webinar: The Dynamic Nature of Wealth and Estate Plans

February 7 - April 29
Facilitated Training: Commercial Lending

February 8
Webinar: Jump-Start Your 2023 CECL Adoption

February 9
Webinar: New Frontiers in Combating Redlining

February 14 - March 11
Facilitated Training: Marketing Planning

February 15 - 16
Virtual Conference: Wealth Management and Trust Conference

February 15
Webinar: Saving the World Without Breaking the Bank: Navigating ESG in 2022

February 17
Webinar: How to Attract and Retain Female Top Earners

February 20 - 22
Conference: Conference for Community Bankers
JW Marriott Desert Springs Resort & Spa, Palm Desert, CA




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