“FDIC Floats AML Revamp, Stablecoin Guidelines”
The FDIC and other federal regulators proposed shifting AML oversight toward higher-risk activities while expanding FinCEN’s role in supervision and enforcement. Separately, the FDIC proposed a Genius Act framework that sets custody and reserve requirements for stablecoin issuers, affirms that tokenized deposits would be treated as regular deposits, and clarifies that reserves backing stablecoins would not qualify for pass-through FDIC insurance.
Speaking of stablecoins, a White House analysis found that restricting stablecoin yield would have minimal impact on bank deposits and lending, arguing that funds would continue flowing through the banking system even if their form changes. Citizens Bank of Edmond CEO Jill Castilla pushed back in a LinkedIn post, arguing that the analysis overlooks how stablecoin-driven deposit shifts would concentrate funding away from community banks, limiting their ability to support local lending even if systemwide balances remain unchanged.
“What Is the Best Way for Community Banks to Fight Fraud: A 4-Layered Defense Strategy”
Internal controls, governance, staff training, and advanced technological tools remain the bedrock of fraud prevention. However, these layers need to be properly integrated in an overlapping framework to reinforce each other as threats evolve. Ongoing evaluation is key as fraudsters continue to change tactics.
“Banks Must Act Now as Consumer Credit Stress Begins to Spread”
Household debt reached $18.8 trillion at the end of 2025, with early-stage delinquencies rising across a number of loan categories, according to a New York Fed report on household debt and credit. Stress is most evident in student loans and revolving credit, pointing to potential increases in charge-offs. Banks face a narrowing window to adjust underwriting, pricing, and portfolio monitoring before losses materialize, this article warns.
“Five Risks Jamie Dimon Is Worried About in 2026”
In his annual letter to shareholders, JP Morgan Chase CEO Jamie Dimon highlighted inflation caused by geopolitical conflicts and declining trust in government as key risks. His broader message: a more volatile macro and competitive environment is shaping bank strategy.
“Nurturing the Next Generation of Leaders”
Gen Z employees are prioritizing purpose, flexibility, and development over traditional advancement paths. Community banks are responding with structured training and mentorship to build leadership pipelines.
“White House Continues Campaign to Gut CDFIs”
The administration proposed a 63% cut to CDFI discretionary funding, redirecting most of the remaining dollars toward rural development. While Congress has rejected similar cuts in the past, the move could signal a shift in how federal support for community lending is structured.
“Retail Banks Face Shrinking Margins for Strategic Mistakes”
Structural shifts from consolidation to payments to fintech competition are reshaping how banks create and capture value. Maintaining customer relationships increasingly requires aligning scale, data, and capabilities with a clear operating model. Institutions that can’t adapt risk falling behind.
In Other News
Register here for our webinar featuring The CorePoint CEO Neil Stanley on May 5 at 1:00 PM EST on how artificial intelligence is helping customers identify higher-yielding alternatives—and what banks can do to defend against an estimated $3.5 trillion in at-risk deposits.
Meet the 20-year-old phenom taking over the chess world, NASA released several incredible photos from the Artemis II mission, and officials warn the ceasefire in Iran could be on thin ice.