ABA Releases TV Ad Urging Policymakers to Reject Reg II ‘Corporate Megastore Bailout’
September 10, 2024
The American Bankers Association will air a television ad during Tuesday’s presidential debate urging policymakers to reject a Federal Reserve proposal to lower the cap on debit card interchange fees, saying the change would amount to a corporate megastore bailout.
The Fed last year proposed revising Regulation II to lower the cap from its current rate of 21 cents and .05% of the transaction, plus a one-cent fraud adjustment, to 14.4 cents and .04% per transaction and a 1.3 cents fraud-prevention adjustment, effective June 30, 2025. In the ad, a series of falling dominos illustrates the “domino effect” that would result from the policy change, noting that consumers lost their rewards program when the cap was first enacted while corporate retailers kept the savings they had promised to share. Those same megastores are now pushing to lower the cap even further, which would result in many of the neediest bank customers losing banking access, according to ABA.
“Megastores win and you pick up the pieces,” the ad states. “Tell the White House and the Fed to stop the corporate megastore bailout.” ABA is also providing an online form that bankers and other members of the public can use to urge the Fed to reject Reg II proposal.
A valuable guide to understanding the election process and the key facts about voting. Stay informed and make educated decisions at the polls!
ABA Banking Journal: FinCEN Releases Commercial on Beneficial Ownership Information Reporting
The Financial Crimes Enforcement Network this week released a new video and radio commercial to educate business owners on the new beneficial ownership information reporting requirements. It is part of a larger public outreach campaign by the agency, which includes a dedicated website and videos on BOI reporting.
FinCEN last month issued a notice to financial institution customers about BOI reporting, explaining why certain customers must report directly to the agency in addition to giving information to their banks, which are subject to the customer due diligence rule.
ABA Banking Journal: Fed’s Bowman Shares Outline for Improving Bank Stress Tests
September 10, 2024
The Federal Reserve’s stress tests have many virtues, but as currently implemented, several significant drawbacks make the process less fair, transparent and useful than it could be, Fed Governor Michelle Bowman said today. During a speech in Washington, D.C., Bowman made four recommendations for improving stress tests.
First, regulators need to address the excessive year-over-year volatility in stress testing results, which are used in the calculation of stress capital buffers, Bowman said. Second, there is a benefit to promoting greater transparency in stress testing, particularly as it relates to the disclosure of the underlying models.
“The simple solution here seems to be disclosure of more granular information about all of the models used in stress testing,” she said. “In my view, disclosure of these models—and even subjecting the models to appropriate notice and comment processes and public feedback—would not undermine the goal of the stress tests of having a regulator-created model that is separate and distinct from the internal models used by firms.”
Third, regulators should adjust the compliance framework for stress capital buffers. “Firms should not be forced to comply with higher capital requirements after only a few months’ notice but should have a reasonable time frame for compliance,” Bowman said.
Finally, as regulators move forward with Basel III implementation, they must take a careful look at whether market risk and operational risk requirements in that proposal overlap with the “global market shock” and operational risk elements of stress testing, and think about the calibration of such requirements in the aggregate.
“In my view, there are strong indications that as currently formulated, the combination of these requirements would result in an excessive calibration of risk-weighted assets for market making and trading activities,” she said.
The SDBA has opened up orders for the 2025 Scenes of South Dakota Calendar! This calendar features photos of South Dakota submitted by South Dakota bankers, their family members and customers.
These calendars are a great opportunity to thank your customers for their business and promote your bank or business. Your bank, branch or business' logo and name can be printed on each calendar to display in homes and businesses all year long. The SDBA logo is also included to emphasize the strength and security of South Dakota’s banking industry. The Scenes of South Dakota Calendar is exclusive to SDBA member banks and associate members.
If you have any questions, email Laura Norton or call the SDBA Office at 605.224.1653.
2024 Lead Strong: Women in Banking Conference
September 25-26 | Sioux Falls Convention Center
Lead Strong: Women in Banking is an annual gathering that celebrates and empowers women in the financial industry. Join us for an engaging and enlightening event that focuses on the achievements, challenges, and opportunities for women in the world of banking. This conference provides a unique platform for networking, knowledge sharing and fostering meaningful connections among leading professionals in the field.
The Credit Analyst Development Program is designed for credit analysts, credit officers, credit administrators, commercial loan officers/managers, loan review officers, branch managers and management trainees. In order to obtain the greatest benefit from this course, participants should have a general understanding of accounting and have a basic understanding of financial statement and credit analysis.
Having learned how to interpret and analyze a bank’s financial statements, participants will gain deeper insight into the factors affecting bank performance. Later sessions in this course will address ways in which performance may be hindered or improved by funding strategies and risk management. Ultimately, participants will be able to review a bank’s financial statements to identify strengths and weaknesses and be able to recommend changes that will lead to improved performance.
In the final session of this course, participants will put what they have learned into practice. Participants will analyze a new data set, rate the bank’s performance and suggest strategic adjustments that might benefit the bank.
October 10, 2024 | Holiday Inn & Suites | 2040 Russell Street | Sioux Falls, SD
Registration is now open for the 2024 SDBA Annual Security Seminar, Thursday, October 10 at the Holiday Inn & Suites located at 2040 Russell Street in Sioux Falls, SD. This well-rounded seminar focuses on a range of issues of concern to security officers, facility personnel, and management. Using current trends and examples, a variety of topics will be covered, such as The Robbery Experience; Active Shooter Vs. Armed Robbery; Increasing Customer Service and Security; and Security Assessments. Security officers or directors, operations managers, auditors, HR directors, legal staff, loan officers, disaster recovery managers, collection staff and fraud investigators are encouraged to attend.
October 18, 2024 | 9am-3pm CDT | Madison, WI and Virtual
This 1071 Workshop is designed to provide attendees with an understanding of the 1071 final rule and how they can start implementing it in their organizations. The workshop will start out with an overview of the 1071 rule, helping attendees understand the larger framework that will be required. After this, we will walk through select aspects of the new rule, including institutional coverage, transactional coverage, implementation deadlines, and a review of the data points that will need to be collected and reported. The program will conclude with a discussion on creating an implementation plan, including a review of steps financial institutions can consider for rolling out the new small business data collection and reporting rule.
In this conversation, Laura Benson interviews Clinton Gerst, the President of Bank of Bozeman, about navigating market risk and making educated predictions for rate changes and interest rate risks. Clinton discusses the use of the futures market to gauge market consensus, the importance of staying competitive in the community banking industry, and the potential risks and challenges in a maturing economic cycle. Clinton also shares insights on how community banks can manage risks and maintain margins, and emphasizes the need for flexibility and open-mindedness in navigating the ever-changing financial landscape.
Learn how to put compliance management solutions from Compliance Alliance to work for your bank, by contacting (888) 353-3933 or [email protected] and ask for our Membership Team.
A valuable guide to understanding the election process and the key facts about voting. Stay informed and make educated decisions at the polls!
The SDBA has opened up orders for the 2025 Scenes of South Dakota Calendar! This calendar features photos of South Dakota submitted by South Dakota bankers, their family members and customers.
Banking Matters Podcast