STATE GOVERNMENT RELATIONS
Indiana Governor Braun hints at special session
In an interview this week, Gov. Mike Braun indicated he is leaning in the direction of calling a special session in November. The special session is being considered for purposes of redrawing the current Indiana congressional districts. Indiana law only permits the governor to call a special session.
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FEDERAL GOVERNMENT RELATIONS
OCC to divide supervisory functions by bank size
The Office of the Comptroller of the Currency will split its bank supervision and examination division into three distinct units based on bank size, reversing a decision earlier this year to combine its supervisory functions into a single entity.
House lawmakers introduce bill to end Fed’s dual mandate
House Financial Services Committee Chairman French Hill, R-Ark., announced the introduction of legislation to end the Federal Reserve’s dual mandate “and ensure the central bank focuses exclusively on containing inflation.”
FDIC surveys banks on anti-money laundering compliance costs
The Federal Deposit Insurance Corp. has launched a survey on the costs of compliance with anti-money laundering and countering the financing of terrorism regulations, according to a notice published in the Federal Register.
House committee advances industry-supported bills
The House Financial Services Committee voted to advance five industry-supported bills designed to support community banks.
The committee voted:
- 51-0 to pass H.R. 3234 – sponsored by Rep. Tom Emmer, R-Minn. – which would raise the percentage threshold of reciprocal deposits that may be held by a bank without being considered brokered deposits.
- 28-24 to pass the Bank Competition Modernization Act (H.R. 5262), sponsored by Rep. Scott Fitzgerald, R-Wis., which would allow banking agencies to not request a Justice Department competitive analysis of a merger or acquisition application that would result in a bank with assets of less than $10 billion.
- 33-19 to pass the Community Bank LIFT Act (H.R. 5276), sponsored by Rep. Young Kim, R-Calif., which would lower the Community Bank Leverage Ratio from 8-10% to 6-8% and allow banks with up to $15 billion in assets to use the CBLR.
- 35-17 to pass the Merchant Banking Modernization Act (H.R. 5291), sponsored by Rep. Roger Williams, R-Texas, which would amend the Bank Holding Company Act to provide that merchant banking investments made through an affiliate of a bank holding company may generally be held for a period of not less than 15 years.
- 49-2 to pass the Community Bank Deposit Access Act of 2025 (H.R. 5317), a bill sponsored by Chairman French Hill, R-Ark., to allow custodial deposits to be held by community banks without being considered brokered deposits, provided the custodial deposits do not exceed 20% of the banks’ total liabilities.
Fed lowers interest rates by 25 basis points
The Federal Open Market Committee voted to lower target interest rates by 25 basis points to a range of 4-4.25%.
The FOMC said:
- Indicators suggest that economic activity moderated in the first half of the year.
- Job gains have slowed, and the unemployment rate has edged up but remains low.
- Inflation has moved up and remains somewhat elevated.
Fed Governor Stephen Miran voted against the action, saying he preferred to lower the target range for the federal funds rate by 50 basis points. In its latest economic projections, the Federal Reserve estimated a higher gross domestic product than in the June report, but steady unemployment and inflation.