“Community Banks Push Back on Fed’s ‘Skinny’ Account Proposal”
More than two dozen community banks urged the Fed to revise its proposed limited payment account framework, arguing it would give nonbanks access to key payment systems without the same regulatory standards. They also warned it could divert deposits away from community banks and create new operational and compliance risks.
“Kevin Warsh Asked the Market to Speak. It Answered.”
Fed Chair Kevin Warsh defended giving markets less guidance in his post-FOMC press conference yesterday, but investors pushed long-term interest rates higher and inflation expectations rose, reinforcing uncertainty over the Fed’s rate path, bank funding costs, and loan demand.
“2026 Governance Best Practices Survey: M&A, Artificial Intelligence Drive Boardroom Change”
More bank boards are adding directors with merger and AI expertise, according to Bank Director’s annual governance survey. The survey also found that many boards have updated AI oversight, but 21% of respondents said AI risks are not reviewed by the board.
“How Community Banks Can Win the Small Business Lending Race”
Community banks can better compete with fintechs for small business customers by using AI to speed loan origination while keeping bankers in control of credit decisions.
“Main Street Banks Are a Cheaper Way to Play the AI Banking Boom”
Many regional banks are offsetting pressure on lending income by expanding investment banking, payments, and other fee-based businesses. The shift reflects growing demand from commercial customers investing in AI and other growth initiatives.
“Why This Veteran M&A Bank Builder Is Aiming for Small and Local Now”
A former Texas bank exec aims to build a new community bank, betting that consolidation driven by larger banks has created opportunities to win customers and talent seeking more local decision-making.
“How to Turn Every Branch into a Destination Worth Leaving Home For”
Apple Store architect Ron Johnson argues that bank branches should prioritize advice and relationships over transactions, with AI supporting employees rather than replacing them.
In Other News
Much of Europe is engulfed in wildfire, WSJ takes us inside the effort to recover the remains of WWII POWs from a sunken Japanese transport ship, and Dr. Anthony Fauci pled the 5th more than 100 times in a Senate hearing.
Thanks for reading.