Democrats held their national convention in Chicago, the Wall Street Journal shared six rules for travelling during retirement, and giant Pakistani rats are gnawing their way through the parliament's official records.
Fed Chair Jerome Powell's annual Jackson Hole speech is this morning at 10 a.m. ET. Everyone will be listening for clues about the direction of Fed rate policy in the coming months. Watch here.
Additionally, we have upgraded our Peer Intelligence platform. Take it for a spin! Big thanks to our community manager, Tanja Klacar, for all her efforts on this. Tanja is the glue that holds Peer Intelligence together.
Without further ado, here's what else you might want to read this week:
"More Banks Are Reporting Slowing Loan Growth, Raising Risk Concerns for Directors"
Nearly 40% of respondents to IntraFi's most recent quarterly survey of bank executives reported a year-over-year decline in loan demand at their institutions. Efforts to boost lending in the near term could lead to credit problems down the road, so bank leaders need to ensure they're asking the right questions of their teams to avoid any missteps, this article says.
"Banking Groups Urge Comment Period Extension for Brokered Deposits Rule"
All the major bank trade groups sent a joint letter urging the FDIC to extend the comment period for its brokered deposit proposal, warning the new restrictions could disrupt operations and harm consumers. Behind the scenes, the groups do not expect this effort to succeed, as FDIC Chair Martin Gruenberg is racing to finalizing the rule before he is replaced, either by Democratic nominee Christy Goldsmith Romero or a Republican nominee if former President Trump wins the November election.
On a separate note, some banking groups and the occasional reporter or blogger have wondered whether the brokered deposit proposal might affect deposit services like ICS or CDARS. The short version is: It won’t. One-way deposits are already brokered, and the only change the plan would make for reciprocal deposits involves a very uncommon situation in which a bank that has been receiving reciprocal deposits becomes less than well capitalized or rated below good, and the bank does not receive a waiver from the FDIC, and the bank receives reciprocal deposits in an amount that exceeds the existing “special cap.” Even in such an unusual case, the proposal provides a way for the bank to requalify to receive non-brokered reciprocal deposits.
"CRA Lawsuit Brings Fissures Between Banking Advocates to the Forefront"
Industry groups have sued the OCC, Fed, and FDIC, claiming the regulators exceeded their statutory authority and violated the Administrative Procedure Act by passing new anti-redlining rules. However, some bankers and consumer organizations say the changes are long overdue.
"Fed's Barr Warns of 'Concentration Risk' in Cybersecurity for Banks"
Don't sleep on this story, as it is a likely harbinger of regulatory action to come. Banks (and some government agencies) rely on a small number of cybersecurity providers, which poses a threat to financial stability, according to Fed Vice Chair Michael Barr. To mitigate this concentration risk, banks should enhance their due diligence of third-party contractors, he says.
"7 Steps to a Successful Regulatory Audit"
These tips can improve your institution's chances of acing its next regulatory exam.
"Stepping Out of the Shadows to Take on the Fed"
The Shadow Open Market Committee, a distinguished group of economists and former policymakers, has been challenging the Fed's approach to monetary policy, regulatory reform, and the economy for more than half a century. While the group's public profile has diminished in recent years, it aims to play a bigger role in informing policy decisions in the future.
"FHFA Took Action Against Federal Home Loan Banks After Bank Failures"
The regulator issued enforcement actions against the Federal Home Loan Bank of San Francisco and the Federal Home Loan Bank of New York for lending to SVB and Signature as the banks' financials and liquidity were rapidly deteriorating.
The number of bank deals in 2024 is on pace to eclipse last year's totals, and regionals are leading the charge. However, the aggregate value of deals remains well below last year's.
"What to Do When Fraud Strikes"
Four attorneys explain how banks can mitigate fraud risks, and if fraud does occur, what banks should do with fraudulent funds in their custody.
"Former Kansas Bank CEO Gets 24 Years in Prison"
Speaking of fraud, former Heartland Tri-State CEO Shan Hanes was sentenced for embezzling $47 million from the bank he led as part of a "pig butchering" scheme that ultimately led to the institution's collapse.
"Apple Opens Tap-to-Pay to Competitors, but Can They Take Advantage?"
Apple is opening the "tap-to-pay" technology that powers Apple Pay and Wallet, potentially enabling third-party digital-wallet providers to deliver the same frictionless commerce experience as Apple.
"Banks Ponder, 'What's in a Name?'"
Banks tend to have similar-sounding names, which isn't ideal from a marketing perspective. For instance, around 700 U.S. bank names contain the word "first" (or "1st") and 247 contain the word "community." But rebranding efforts aren't always worth the risk.
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Rob Blackwell
Chief Content Officer and Head of External Affairs
IntraFi
Arlington, VA
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