FEDERAL GOVERNMENT RELATIONS
SBA releases form to help community banks report on debanking compliance
The Small Business Administration released a streamlined form to help community banks comply with President Donald Trump’s executive order on ensuring access to fair banking. The form offers a template for institutions with less than $30 billion in assets to use in responding to the SBA’s directive that banks in its network report on their compliance with the debanking executive order by Jan. 5, 2026.
Pursuant to Trump’s Aug. 7 executive order, the SBA in August sent a letter to more than 5,000 lenders ordering them to ensure they are not debanking politically disfavored people or businesses—either independently or at the direction of federal regulators—and to reinstate customers who were wrongfully denied access to financial services on the basis of political, religious or ideological beliefs. President Trump’s “Guaranteeing Free and Fair Banking for All Americans” executive order also directs federal banking regulators to remove the use of reputation risk in their materials and to identify financial institutions that have had policies or practices that facilitate politicized or unlawful debanking and to take appropriate remedial action.
FHFA withdraws proposed rules on Fannie Mae, Freddie Mac, Federal Home Loan Banks
The Federal Housing Finance Agency is withdrawing three proposed rules concerning Fannie Mae and Freddie Mac liquidity requirements, Federal Home Loan Bank governance and FHLBank unsecured credit limits.
Sen. Scott seeks more info from FDIC on deposit insurance reform
As lawmakers consider deposit insurance reform, Senate Banking Committee Chairman Tim Scott, R-S.C., is asking the Federal Deposit Insurance Corp. to provide additional information about the amount of uninsured deposits in the U.S. banking system and the cost to banks should the deposit insurance limit be increased.
Agencies issue reminder about flood insurance during government shutdown
Federal banking agencies reissued previously provided guidance on flood insurance requirements during a lapse in the National Flood Insurance Program. The announcements contain no changes from the guidance issued during prior government shutdowns.
White House releases report detailing health savings account expansion
A tax package recently passed by Congress and a recent policy change together will make an additional 10 million Americans eligible to open and contribute to health savings accounts, according to a new report by the White House Council of Economic Advisers.
FDIC announces new appointments to leadership positions
The Federal Deposit Insurance Corp. announced the appointment of five individuals to serve in senior leadership positions, including director of the agency's Division of Risk Management Supervision.
FDIC to meet next week on reputational risk, MRAs
The Federal Deposit Insurance Corp. announced its board of directors will meet next week to consider a proposed rule prohibiting the use of reputational risk by regulators as well as a proposed rule regarding unsafe or unsound practices and other matters requiring attention.
Slated for 10 a.m. (Eastern time) Tuesday, Oct. 7, the board meeting will be webcast on the FDIC website.
Agency Action on Reputational Risk:
- The Office of the Comptroller of the Currency in March announced that it would no longer examine its regulated institutions for reputation risk and would remove references to reputation risk from its Comptroller’s Handbook booklets and guides.
- Treasury Secretary Scott Bessent in April said he had asked each of the bank regulators to consider removing reputational risk as a basis for supervisory criticism.
- The Federal Reserve in June announced that reputational risk will no longer be a component of examinations in its supervision of banks.