NIMs Rise as CFPB Revises Small-Business Rule

Big banks expanded net interest margins during the third quarter, with institutions over $100 billion in assets posting a median sequential increase of 5 bps and modest deposit growth. Analysts attributed the gains to asset repricing, balance-sheet shifts, and lower funding costs following recent rate cuts.

Separately, federal regulators advanced several policy actions, including a CFPB proposal to narrow its small-business lending rule by raising the reporting threshold, tightening the definition of small business, and excluding certain loan types. The agency also proposed moving the compliance date to Jan. 1, 2028, and is seeking public comments through Dec. 15.