Varo’s FDIC application tests uncharted territory

Bank Innovation

Compliance Daily Post 1 Exclusive Open Banking Operations & Best Practices Premium Retail Banking Banking Charter fdic OCC Robinhood Varo MoneyVaro Money has been striving to get a banking charter for three years. On Aug.

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Varo files FDIC application, announces $100m Series C funding

Bank Innovation

Varo Money, the 4-year-old digital banking startup with 750,000 users and $600 million in deposits, has applied for a banking license with the Federal Deposit Insurance Corporation (FDIC) this week.

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FDIC: Banks Pull In $237B In 2018

PYMNTS

Amid rising revenues and decreased taxes, the Federal Deposit Insurance Corporation (FDIC) announced on Thursday (Feb. In an announcement , FDIC Chairman Jelena McWilliams said, “Loan balances expanded, net interest margins improved and the number of ‘problem banks’ continued to decline.”.

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Regulators must issue AI guidance or FDIC will: McWilliams

BankThink

The FDIC chief said it is critical to give the industry clarity on using emerging technologies, particularly for the thousands of community banks her agency oversees. Fintech regulations Regtech AML Artificial intelligence Machine learning Jelena McWilliams FDIC FinCEN

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Will an OCC, FDIC Charter Help Varo Money Become the First National Mobile Bank?

Bank Innovation

Varo applied for a banking charter from the Federal Deposit Insurance Corporation (FDIC), as well as for a charter from the Office of the Comptroller of the Currenc, in the hopes of forming “Varo Bank,” the mobile banking startup announced today. Want a national bank that’s mobile-only?

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FDIC Names New Advisory Committee Members

ABA Community Banking

The FDIC this week announced the appointment of four new members to its Advisory Committee on Community Banking. The post FDIC Names New Advisory Committee Members appeared first on ABA Banking Journal.

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FDIC to consolidate supervision and resolution activities for large banks

BankThink

The FDIC's new complex institution supervision and resolution division will be operational July 21. Living wills Dodd-Frank SIFIs Jelena McWilliams FDIC OCC

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FDIC announces new finance chief

BankThink

Chief Financial Officer Steve App will be succeeded by Bret Edwards, who is now head of the FDIC's division of resolutions and receiverships. Career moves Failures Policymaking Jelena McWilliams FDIC

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FDIC, payday lenders agree to settle Choke Point lawsuit

BankThink

As part of the deal, the agency summarized its policy on account terminations and issued a letter acknowledging that some employees “acted in a manner inconsistent with FDIC policies with respect to payday lenders.”. Payday lending Lawsuits Financial regulations OCC FDIC Advance America

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FDIC Seeks Public Comment On Banks And Small-Dollar Loans

PYMNTS

The Federal Deposit Insurance Corporation (FDIC) announced that it is has issued a request for public comments related to small-dollar lending by financial institutions. ” Recent research from the FDIC shows 20 percent of U.S. With that in mind, the FDIC suggests that in 2017, 14.8

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FDIC eases requirements on deposit tracking

BankThink

MBS Deposit insurance Deposits Dodd-Frank Regional banks SIFIs Jelena McWilliams FDICThe agency's board voted 3-1 on Tuesday to give large banks additional time to comply with new rules that force them to keep better track of insured deposits.

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Minority-owned banks' performance has significantly improved: FDIC

BankThink

The number of minority depository institution charters is declining even as their financial performance is going up, according to a new study by the FDIC. CDFIs Law and regulation Community banking Jelena McWilliams FDIC

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Details on the FDIC Security Breach by Chinese Spies [VIDEO]

Bank Innovation

Risk Security fdicHow Chinese spies hacked into computers at the Federal Deposit Insurance Corporation from 2010 until 2013 -- and American government officials tried to cover it up.

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Remaking the FDIC by ripping up the rules

BankThink

Jelena McWilliams knows the value of the FDIC’s role in a way most other Americans do not. Women in Banking Deposit insurance Dodd-Frank Fintech Volcker Rule ILCs Jelena McWilliams FDIC Fifth ThirdNow she's in charge as it grapples with difficult questions and sets out to reshape the industry.

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FDIC Proposes Large-Bank Surcharge

Independent Banker

The FDIC has released a proposal to indemnify the banks with assets less than $10 billion from the costs of raising the Deposit Insurance Fund reserve ratio from 1.15 The FDIC could vote on the proposal as early as next month.

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Leonard Chanin joins FDIC

CFPB Monitor

The FDIC has announced that Leonard Chanin joined the agency on March 18 as Deputy to the Chairman. In that capacity, he will advise Chairman Jelena McWilliams on consumer protection issues, including further expanding access to banking services for unbanked and underbanked consumers, strengthening consumer research functions at the FDIC, and building upon the activities of the FDIC Advisory Committee on Economic Inclusion. FDIC Federal CFS Monitor chanin

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First failed bank since 2017 will leave FDIC with hefty price tag

BankThink

Community banking Deposit insurance Failures Policymaking State regulators FDIC TexasRegulators closed The Enloe State Bank in Texas late Friday, marking the first failure in 17 months and the first in the Lone Star State in over five years.

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What's missing from FDIC's brokered deposits notice

BankThink

Deposits Consumer banking Financial regulations Policymaking Jelena McWilliams FDICThe agency’s effort is a good first step to updating brokered deposit rules, but regulators excluded several important considerations in their advance notice of proposed rulemaking.

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FDIC Seeks Comment on Its Approaches to Rulemaking

CFPB Monitor

The Federal Deposit Insurance Corporation (the “FDIC”) has published a request for information in the Federal Register (the “RFI”) seeking comment on approaches it uses, or is considering using, to analyze the effects of its regulatory actions and rulemaking.

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FDIC: Bank Earnings Grow 4.1% Year-on-Year

ABA Community Banking

FDIC-insured banks and savings institutions earned $62.6 increase from the industry’s earnings a year before, the FDIC said today. The post FDIC: Bank Earnings Grow 4.1% billion in the second quarter, a 4.1%

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Fed, OCC, FDIC: US Bank Loan Risk On The Decline

PYMNTS

Federal Reserve, Federal Deposit Insurance Corporation (FDIC) and the Office of the Comptroller of the Currency (OCC) all released a joint report saying that due to a healthy economy, prospects for loan repayment look good.

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Square Will Reapply for Banking License with the FDIC After Last Week’s Withdrawal

Bank Innovation

It plans to reapply with the FDIC, but did not reveal […]. Capital Cards Commerce Exclusive Innovations Lending Mobile Online Open Fintech Operations Payments Celtic bank fdic N26 SoFi SquarePayment processor Square has withdrawn its application to become a deposit-taking bank, a move similar to online lender Social Finance or SoFi, which withdrew its application last fall.

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Agencies are close to finishing Volcker Rule changes: FDIC's McWilliams

BankThink

Volcker Rule Regulatory relief Regulatory reform Accounting Jelena McWilliams Joseph Otting FDIC Federal Reserve OCCThe head of the Federal Deposit Insurance Corp. previously had said regulators were weighing numerous options for addressing criticism of their 2018 proposal.

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Crapo, Senate Banking GOP probe FDIC on Operation Choke Point

BankThink

Republicans on the Senate Banking Committee expressed concern that FDIC examiners are verbally discouraging banks from working with certain businesses. De-risking Mike Crapo Jelena McWilliams Senate Banking Committee FDIC

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Nonbanks' rapid growth poses risks to industry: FDIC's McWilliams

BankThink

FDIC Chairman Jelena McWilliams questioned whether regulators and banks are fully capturing the emerging risks of a new shadow banking system. Nonbank Servicing systems Fintech Fintech regulations Jelena McWilliams FDIC FSOC Treasury Department

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FDIC Issues Proposal on Assessment Credits

ABA Community Banking

The FDIC today proposed to amend its rule that determines when assessment credits can be used. The post FDIC Issues Proposal on Assessment Credits appeared first on ABA Banking Journal. Community Banking Newsbytes Deposit insurance

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FDIC Final Rule Sets Community Bank Leverage Ratio at 9%

ABA Community Banking

The FDIC today approved a final rule allowing community banks with a leverage capital ratio of at least 9% to be considered in compliance with Basel III capital requirements and exempt from the complex Basel Calculation.

FDIC Part 370: Support On-site FDIC Inspections

Perficient Financial Servies

In order to comply with FDIC Part 370, covered institutions will have to implement a change program that encompasses the people, processes, and technology necessary to support on-site FDIC inspections. In addition to the annual certification and report, the FDIC will conduct on-site testing of institutions’ compliance with Part 370. FDIC will be able to view customer PII.

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FDIC Part 370 Testing Support

Perficient Financial Servies

Each phase of a company’s Part 370 response will have to undergo rigorous testing to ensure that all the regulatory requirements are met and the FDIC’s ongoing testing will produce satisfactory results. — If you are interested in learning more about FDIC Part 370 and how we can help you comply with the rule, please download our comprehensive guide or complete the contact form at the bottom of this page.

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5 takeaways on industry’s health, from FDIC’s 1Q report

BankThink

Earnings Lending Community banking Delinquencies Federal Home Loan Banks Policymaking FDICWider net interest margins compared to a year earlier helped make up for a slight decline in loan balances, as nearly two-thirds of banks reported higher profits in the first quarter.

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FDIC's McWilliams to hire outside counsel over 'Choke Point' concerns

BankThink

Jelena McWilliams is responding to concerns from Republican members of Congress that FDIC staffers are discouraging banks from doing business with certain industries. De-risking Jelena McWilliams Joseph Otting Mike Crapo FDIC OCC House Financial Services Committee

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FDIC crackdown on brokered deposits goes too far: ABA report

BankThink

Deposits Regulatory reform CDs Regulatory relief Jelena McWilliams Rob Nichols FDIC American Bankers AssociationA legal memo conducted on behalf of the trade group says the agency’s policy goes beyond statutory intent and places undue restrictions on healthy banks.

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McWilliams Outlines FDIC Steps to Strengthen Minority Banks

ABA Community Banking

The FDIC is updating examiner instructions to help strengthen minority depository institutions, FDIC Chairman Jelena McWilliams said today in Washington. The post McWilliams Outlines FDIC Steps to Strengthen Minority Banks appeared first on ABA Banking Journal.

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OCC and FDIC chiefs signal progress on CRA reform

BankThink

CRA Small-dollar lending Payday lending Jelena McWilliams Joseph Otting OCC FDICIn successive speeches, Joseph Otting and Jelena McWilliams expressed hope for a Community Reinvestment Act rule by early next year, and also said regulators should align their small-dollar lending policies.

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FDIC chief ties personal story to CRA reform effort

BankThink

CRA Digital banking Underbanked Joseph Otting Jelena McWilliams Lael Brainard OCC FDIC Federal ReserveRecounting her family’s financial struggles, Jelena McWilliams said regulatory policy should address the plight of the underbanked.

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Agencies closer to joint polices on CRA, small-dollar loans: FDIC head

BankThink

CRA Small-dollar lending Deposit advances Consumer banking Jelena McWilliams Joseph Otting FDIC OCCJelena McWilliams said federal bank regulators could begin "within a week or so" to discuss a draft proposal for reforming the Community Reinvestment Act.

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Banks should improve tech vendor service contracts: FDIC

BankThink

Fintech regulations Vendor management Risk management Data breaches FDICSome contracts are not "adequately" defining which party — the bank or the vendor — is responsible for managing risks, the agency said.

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FDIC Part 370: Implement FDIC-Required Calculations And Reports

Perficient Financial Servies

In order to comply with FDIC Part 370, covered institutions will have to implement a change program that encompasses the people, processes, and technology necessary to implement FDIC-required calculations and reports. Once an organization has determined that it is able to meet the requirements of Part 370, it must go about designing their interfaces with the FDIC. The post FDIC Part 370: Implement FDIC-Required Calculations And Reports appeared first on Financial Services.

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OCC and FDIC issue proposed rules to undo Madden

CFPB Monitor

The OCC and FDIC issued proposed rules this week intended to eliminate the uncertainty created by the Second Circuit’s decision in Madden v. Comments on the FDIC’s proposal must be submitted no later than 60 days after the date the proposal is published in the Federal Register.

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Smartphone brand can reflect creditworthiness: FDIC study

BankThink

Customer data Data ownership Fintech Credit scores Credit quality Policymaking Alternative lending FDICA paper released by the agency’s Center for Financial Research says aspects of someone’s digital footprint — including whether they use Apple or Android — help predict likelihood of default.

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ABA Urges FDIC to Return Assessment Credits ASAP

ABA Community Banking

In a comment letter to the FDIC today, the American Bankers Association again called on the agency to return deposit insurance assessment credits owed to banks as expeditiously as possible, so that they can support the institutions’ lending and liquidity.

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FDIC Part 370: The Background

Perficient Financial Servies

While existing processes were deemed suitable to handle smaller or slower bank failures, the FDIC realized that it might struggle to pay depositors if a complicated bank failed rapidly. The FDIC is required by law to pay depositors “as soon as possible” after a depository institution fails, while also resolving claims at the lowest possible cost to the Deposit Insurance Fund. The post FDIC Part 370: The Background appeared first on Financial Services.

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Regulators aim to release CRA plan in 'next few months': FDIC chief

BankThink

CRA Regulatory reform Jelena McWilliams FDIC Federal Reserve OCCJelena McWilliams said federal bank regulators have made progress in developing a proposal but acknowledged that the reform process has been slow.

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