Recent News
"Nearly 96 percent of all U.S. households were banked in 2023, according to just-released national survey by the Federal Deposit Insurance Corporation (FDIC). The 2023 FDIC National Survey of Unbanked and Underbanked Households found that 4.2 percent of U.S. households (representing 5.6 million households) lacked a bank or credit union account.
While the nation's overall unbanked rate remains at its lowest level since the FDIC survey began in 2009, lower-income, less-educated, Black, Hispanic, disabled, and single-parent households continue to be significantly more likely to be... Read more
"Former US President Donald Trump's victory and anticipated Republican control of the Senate and possibly the House should lead to a shakeup of some key legislative and regulatory positions affecting the bank sector.
Financial stock investors seemed pleased overall the day after Election Day, as the KBW Nasdaq Bank index closed up 10.69%, while the S&P 500 closed up 2.53%. The bounce was driven by expectations for regulatory relief.
'In general, we expect aggressive actions by the next group of financial regulators, who will feel emboldened to undo many Biden-era rules,'... Read more
"Today, I'm excited to speak with Brian Argrett, Chair of the Board Directors and President and CEO of Broadway Financial Corporation and its banking subsidiary City First Bank, the largest Black-led minority depository institution (MDI) in the nation.
Impact investing is an increasingly important topic for enterprise families and family offices. Our conversation today focuses on a truly unique and attractive avenue for positive impact available to enterprise families and family offices, which is made possible thanks to the Advancing Communities Together Deposit Program, or ACT – an... Read more
"The Bank Policy Institute, the Kentucky Bankers Association and a community bank in Lexington, Kentucky, filed a lawsuit late Tuesday against the Consumer Financial Protection Bureau and Director Rohit Chopra, challenging the agency's open banking rule.
The 56-page lawsuit, which was filed on the same day that the CFPB released its final rule on open banking, alleges that the bureau exceeded its statutory authority. The lawsuit also claims the CFPB is jeopardizing the safety and soundness of the banking system by limiting banks' discretion to deny third parties access to sensitive... Read more
The following are remarks on entrepreneurship from Lisa. D Cook of the Board of Governors of the Federal Reserve System at the 2024 Women for Women Summit in Charleston, South Carolina:
"Today I would like to talk with you about the important role startups, new businesses, and entrepreneurship play in our economy from the perspective of a Federal Reserve policymaker. I also want to share a bit of my story. Just like many of you—including those who have started a business or those who dream of doing that someday—I have faced and overcome hurdles along a winding path."
"We need more housing supply in America. It is the most important thing we can do to lower the cost of housing. It is true that accomplishing this goal is going to take more than federal money; it is also going to require state and local governments to put in place reforms that make it easier to build housing. But we should not underestimate the important role federal dollars can play buying down the cost of capital as well as creating incentives for local and state governments to support housing construction."
"A new working paper by FinRegLab sheds light on efforts to scale the impact of mission-based lenders on small business lending markets. 'Transforming Small Business Credit: Technology and Data Adoption in Mission-Based Lending' dives into the adoption of technology and data in mission-based lending by community development financial institutions (CDFIs) and minority depository institutions (MDIs). Findings were derived from the experiences of five lenders that FinRegLab is studying as they pilot new lending innovations–Allies for Community Business, Ascendus, LiftFund, Ponce Bank, and... Read more
"The rule will be implemented in phases, with larger providers subject to the rule sooner than smaller ones. Financial firms will be required to comply based on their size; the largest institutions will have to comply by April 1, 2026, while the smallest covered institutions will have until April 1, 2030. Certain small banks and credit unions (those with assets below $850 million) are not subject to the rule."
"Bankers also are concerned that fintechs will use venture capital funding to subsidize lower rates on loans and other products while sending marketing blitzes to steal customers from big banks. Fintechs promise a wide range of financial benefits to low- and moderate-income consumers that bankers say may or may not be real . . . The rule will initially impact the largest banks that for now have just six months to comply. The timeline of staggered four-year compliance dates depending on a bank's size could change in the final rule, some experts say."
"In Congress' last action before Election Day, the Senate cleared a stopgap funding bill Wednesday night that heads off a government shutdown next week, bucking the demands of former President Donald Trump.
President Joe Biden is expected to quickly sign the measure, preventing a funding lapse Tuesday and delaying the government shutdown deadline to Dec. 20. It also punts a potentially bitter funding fight to just before Christmas, with the results hinging on the November elections and which party wins control of the House, Senate and White House."
- Final guidance maintains enhanced scrutiny for:
- Transactions involving nonbanks.
- Pro forma institutions with over $100 billion in assets.
- Institutions with adverse Community Reinvestment Act (CRA) ratings.
- Changes from the proposal include:
- Removal of a statement under the financial resources factor to prevent misinterpretation that a strong IDI would be unable to absorb a weaker one.
- New language clarifying that a merger must reduce financial risk to receive a favorable assessment.
- Slight... Read more
"The industry lawsuit will block what regulators call a necessary update to the rules governing the 1977 law, Sen. Elizabeth Warren (D-Mass.) and Rep. Maxine Waters (D-Calif.), ranking member of the House Financial Services Committee, said in a Sunday letter to the Chamber and the ABA. The law measures banks' lending and investments into low- to moderate-income communities based on branch locations.
The shift to online banking has made a reliance on branch networks for CRA evaluations outdated, Warren and Waters said.
'These rules must be updated, and your efforts to stop... Read more
"State Street Corporation (NYSE: STT) today announced that it has placed an additional round of deposits through two minority depository institutions (MDIs) and Community Development Financial Institutions (CDFIs), Massachusetts-based Leader Bank and Oklahoma-based Local Bank. These placements are the latest installment of the firm's $100 million program that launched earlier this year to facilitate low-cost, stable deposit funding to the communities it serves, and 75% of the funds have been placed."
"Leroy Abrahams, head of Community Engagement at Regions, welcomed the attendees of the third annual Regions Bank CDFI Convening by outlining shared priorities for the leaders in the room. . . .
John Olaimey, President and CEO of Southern Bancorp Bank, led a discussion about the history and primary objectives of CDFIs and how their corporate organizational structure allows them to effectively serve their communities. Olaimey recounted that Southern Bancorp was one of the first CDFIs in existence and talked about their priority to 'balance margin and mission. . .'
The final... Read more
The U.S. Department of the Treasury highlighted several CDBA member banks for their leadership in advancing economic opportunity through the Emergency Capital Investment Program (ECIP). These banks were part of a coalition that lead the way in forging public-private partnerships that bring essential capital to underserved rural and urban communities.
Member banks like First Independence Bank, Asian Bank, Locus Bank, M&F Bank NC, Native American Bank, N.A., Optus Bank, and Southern Bancorp drive Deep Impact Lending, fueling small business growth, expanding access to affordable... Read more
In a speech on September 10th, Fed Governor Barr expressed his intent "to recommend that the Board re-propose the Basel endgame and G-SIB surcharge rules. This will provide the public the opportunity to fully review a number of key, broad, and material changes to the original proposals and provide comment. (The Federal Reserve) will accept public comments on any aspect of the Basel endgame and G-SIB surcharge proposals."
"Rep. Andy Barr, the chair of the House financial institutions subcommittee, discusses why he should lead Republicans on the Financial Services Committee next year. He offers a preview of his agenda, including pushing legislation that would prevent banks from denying legal businesses access to financial services and why large institutions are suddenly supporting it. He also details what changes regulators should make in new Basel III capital rules, how regulatory reform for banks could happen, and why M&A approval rules should be revamped."
CDBA extends our congratulations to members Susan Chapman Plumb of Local Bank and Darrin L. Williams of Southern Bancorp on being appointed an reappointed to the CDFI Fund's Advisory Board!
"Today, the White House announced new appointments by President Biden to the Community Development Advisory Board (the Advisory Board), a 15-person federal advisory committee to the U.S. Department of the Treasury's Community Development Financial Institutions Fund (CDFI Fund). The function of the Advisory Board is to advise the CDFI Fund's Director on the policies regarding the activities and... Read more
"'Demand for community and support services rose somewhat as individuals and households continued to seek housing, medical, and food assistance. Closures of childcare facilities and recent heat waves in some regions led to higher demand for related support services. Nonprofit organizations faced more difficulties securing funds despite a slight increase in contributions from government sources. Small businesses continued to face challenges with access to credit and sluggish demand in urban cores, forcing some of them to close. One Washington contact noted a rise in demand for educational... Read more
"Optus Bank hasn't grown the way CEO Dominik Mjartan expected it to when he joined the company seven years ago. It's grown differently, and more rapidly, than anyone might have imagined.
The South Carolina-based bank, one of about 20 Black-owned banks in the country, was on "life support" in 2017, Mjartan said. Now, Optus has increased its assets by more than 1,000%, raised over $100 million of equity and chipped its way to a profitable business plan.
So Mjartan is stepping down.
'There have been so many moments... over the last year where I thought, "This is the time... Read more