NIMs Strengthen as OCC Eases Community Bank BSA/AML Rules

The banking industry’s aggregate net interest margin expanded by eight bps to 3.28% during the third quarter as loan yields rose and fixed-rate assets continued to reprice, S&P Global Market Intelligence reported. Deposit costs remained elevated, limiting the benefit of the Fed’s late-quarter rate cut, while overall loan growth held at 1.2%, supported partly by lending to nondepository financial institutions.

Another S&P article noted that the OCC introduced measures to ease BSA/AML requirements for community banks, including more tailored examinations and ending a previously required data-collection process.