FEDERAL GOVERNMENT RELATIONS
FDIC extends signage rule compliance date by four months
The Federal Deposit Insurance Corp. board voted to extend the compliance deadline by four months for its final rule on the use of the agency’s name and logo by financial institutions. The new deadline is May 1, 2025.
Bowman: Credit unions, nonbanks should be subject to same regulatory expectations as banks
Credit unions and other nonbanks should be subject to the same regulatory and supervisory expectations as banks if they are engaged in the same activities, Federal Reserve Governor Michelle Bowman said.
Sen. Britt: CFPB has become a ‘regulatory nightmare’
In a new column in American Banker, Sen. Katie Britt, R-Ala., argues that some of the worst fears about the Consumer Financial Protection Bureau have come to pass, including a lack of accountability because Congress has no oversight mechanism.
FDIC says DIF goal is ahead of schedule
The Federal Deposit Insurance Corp. said the reserve ratio for the Deposit Insurance Fund remains on track to reach the statutory minimum of 1.35% as early as 2026, and ahead of the Amended Restoration Plan deadline of Sept. 30, 2028. Since the previous semiannual update, the DIF reserve ratio increased by 6 basis points due to growth in the DIF balance and slower-than-average insured deposit growth, according to the FDIC report.
On Sept. 15, 2020, the FDIC established the Restoration Plan to restore the DIF reserve ratio to at least 1.35% by the statutory deadline after extraordinary deposit growth during the first half of 2020 caused the DIF reserve ratio to decline below the statutory minimum. In June of 2022, the FDIC amended the Plan following projections that the reserve ratio may not reach the required minimum by the statutory deadline and increased deposit insurance assessment rates by 2 basis points for all insured depository institutions.
In a joint letter, the Independent Community Bankers of America, American Bankers Association and other groups said the FDIC proposal rests on faulty economic analysis related to projected interest earnings and deposit growth.