Fed, FDIC, OCC update guidance on third-party risk management
Payments Dive
JUNE 8, 2023
The guidance is aimed at helping banks address the operational, compliance and strategic risks of third-party tie-ups, such as those with fintech firms.
Model Risk Management: Regulatory Priorities and Best Practices
Abrigo
MAY 20, 2022
Meet Model Risk Management Expectations Updates to the FDIC Risk Management Manual should steer institutions toward a model that manages risk and drives growth. Takeaway 1 Aside from meeting examiner expectations, proper model risk management can protect your institution from unnecessary risk. .
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Lessons Learned From the Fourth United States Bank Failure of 2023
Perficient
AUGUST 16, 2023
A rather small bank, as of the end of its first quarter, the bank reported $139 million in total assets and $130 million in total deposits in its FDIC Call Report. Heartland Tri-State began operations in 1985 under the name First National Bank of Elkhart. bank to fail this year.
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FDIC issues advisory on deposit insurance and crypto assets
CFPB Monitor
AUGUST 4, 2022
The FDIC has issued an “Advisory to FDIC-insured institutions Regarding Deposit Insurance and Dealings with Crypto Companies ” to address the agency’s concerns regarding misrepresentations about FDIC deposit insurance by certain crypto companies. The first portion of the advisory addresses risks and concerns.
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If You Are Tired of Being Transactional, You Need A Hedge Program
South State Correspondent
APRIL 30, 2024
Second, the hedge provider must be an FDIC insured institution and structure its hedges as a qualified financial contract (QFC). We see substantial risk to community banks in dealing with non-FDIC hedge providers or those that do not offer QFC protection – think Lehman Brothers.
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If You Are Tired of Being Transactional, You Need A Hedge Program
South State Correspondent
APRIL 30, 2024
Second, the hedge provider must be an FDIC insured institution and structure its hedges as a qualified financial contract (QFC). We see substantial risk to community banks in dealing with non-FDIC hedge providers or those that do not offer QFC protection – think Lehman Brothers.
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Acquisition and integration considerations for banks in 2024
Abrigo
JANUARY 24, 2024
Account for the details before your FDIC bank acquisition Consider these tips for assessing your institution and a to-be-acquired institution for a smooth integration You might also like this webinar, "Valuation and purchase accounting: Navigating the changing M&A landscape."
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Joint Guidance Provided to Banks to Manage Risks Associated With Third-Party Relationships
Perficient
JULY 12, 2023
Perficient provides risk management to more than 500 financial services organizations, many of whom have multiple bank regulators. Often an organization will have a state-charted non-member bank, which has the FDIC as its primary federal regulator. Introduction It’s not you. It’s the guidance.
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Banking Third Party Risk Management Requirements are a Big and Expensive Ask
Celent Banking
DECEMBER 13, 2016
But the slew of banking regulatory requirements for third party risk management is proving to be complex, all-consuming and expensive for both institutions and the third parties involved. In a nutshell, institutions are liable for risk events of their third and extended parties and ecosystems. " www.fdic.gov.
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Banking Third Party Risk Management Requirements are a Big and Expensive Ask
Celent Banking
DECEMBER 12, 2016
But the slew of banking regulatory requirements for third party risk management is proving to be complex, all-consuming and expensive for both institutions and the third parties involved. In a nutshell, institutions are liable for risk events of their third and extended parties and ecosystems. ” www.fdic.gov.
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Bank Regulators Seeking Comments on the Use of AI and ML in the Industry
Perficient
APRIL 2, 2021
The five federal agencies are: the Consumer Financial Protection Bureau (CFPB), the Federal Deposit Insurance Corporation (FDIC), the Federal Reserve Board (Fed), the National Credit Union Administration (NCUA) and the. Risk Management. AI may be used to augment risk management and control practices.
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Preparing your financial institution to manage loan workouts, loan modifications
Abrigo
OCTOBER 28, 2022
Managing loan workouts and modifications Tips for preparing your bank or credit union to handle an increased volume of problem loans while ensuring prudent credit risk management. You might also like this video, "A look at credit risk in a rising-rate environment." CRE loan accommodations.
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The role of bank directors in managing risk
Abrigo
APRIL 12, 2016
The FDIC is offering a fresh take on how a bank’s board of directors should understand and manage risk. The core principles for directors have not changed materially since 1988, the FDIC said. Risk management culture What exactly is a risk management culture? Evaluating risk management.
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How to Choose a Hedge Provider as a Bank
South State Correspondent
AUGUST 21, 2022
Second, community banks should use FDIC-insured institutions as hedge providers, and the hedges must be structured as qualified financial contracts (QFC). We see substantial risk to community banks in dealing with non-FDIC hedge providers or those not offering QFC protection – think Lehman Brothers.
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BaaS Banks Are in Time Out, and Here’s Why It’s a Big Deal
Gonzobanker
JUNE 14, 2023
Cross River Bank recently found itself in hot water with the FDIC when the agency declared that the bank engaged in unsafe or unsound banking practices in relation to its compliance with fair lending laws and regulations, specifically the Equal Credit Opportunity Act and the Truth-in-Lending Act. In effect, Cross River is in time out.
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Great expectations: Loan review system regulations and how to adhere to them
Abrigo
MAY 19, 2023
The complexity and scope of a loan review system will vary based on an institution’s size, type of operations, and management practices. In addition to providing more efficient credit risk review , a loan review solution can provide other analytics to elevate loan review’s profile or support staffing requests.
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Bank exam “hot spot”: Inflating policy limits to avoid scrutiny
Abrigo
JUNE 23, 2017
The desire to avoid examiner scrutiny may tempt some financial institutions to set the bar high when it comes to credit and liquidity risk management policy limits, but regulators are discouraging this approach. It could compromise institutions’ risk management effectiveness and ultimately hurt the institution.
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An Introduction to Understanding FFIEC Regulations
Cisco
JULY 12, 2022
Regulatory requirements are a key operational concern that we hear about from our financial customers. a few agencies include the Federal Reserve (FRB), the Federal Deposit Insurance Corporation (FDIC), the National Credit Union Administration (NCUA), the Office of the Comptroller (OCC), and the Consumer Financial Protection Bureau (CFPB).
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Federal banking regulators issue statement on loan reference rates and advise prompt transition from LIBOR
CFPB Monitor
NOVEMBER 10, 2020
The Fed, FDIC, and OCC have issued a “ Statement on Reference Rates for Loans ” that addresses replacement rates for the London Inter-Bank Offered Rate (LIBOR). In July 2020, the Federal Financial Institutions Examination Council issued a “ Joint Statement on Managing the LIBOR Transition.”
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CFPB, federal and state bank and credit union regulators warn of increased supervisory scrutiny in joint statement on managing LIBOR transition
CFPB Monitor
OCTOBER 21, 2021
The CFPB, Federal Reserve Board, FDIC NCUA, OCC, in conjunction with the state bank and state credit union regulators, jointly issued a statement on managing the transition away from LIBOR (Joint Statement). The Joint Statement indicates that in March 2021, the FCA announced that the one-week and two-month U.S.
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OCC adopts final rule to resolve uncertainty created by Madden
CFPB Monitor
JUNE 1, 2020
It also observed that its interpretation is consistent with the purpose of section 85 by facilitating national banks’ ability to operate lending programs on a nationwide basis and also promotes safe and sound operations by supporting national banks’ ability to use loan transfers as a source of liquidity. (The
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CFPB and federal banking agencies issue RFI on the use of artificial intelligence by financial institutions
CFPB Monitor
APRIL 1, 2021
In what could be an important step towards needed regulatory updating to accommodate the growing use of artificial intelligence (AI) by financial institutions, the CFPB, FDIC, OCC, Federal Reserve Board, and NCUA issued a request for information (RFI) regarding financial institutions’ use of AI, including machine learning (ML). Uses of AI.
Trust: Once Again the Most Precious Currency in Banking
Gonzobanker
MARCH 22, 2023
Irvine Sprague, Former FDIC Director So Gonzo Bankers … how many of us have been hesitant lately to check our iPhone each morning to see what trouble may have hit the fan in the financial world during a few restless hours of slumber? The slow, evolving maturity of a bank’s enterprise risk program needs to speed up fast.
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5 Reasons to Increase SBA Loan Origination at Your Bank or Credit Union
Abrigo
JULY 20, 2021
During Abrigo’s recent ThinkBIG Conference, credit underwriting and loan portfolio risk management trainer and consultant Michael Wear , CRC , of 39 Acres Corp. However, lenders might consider SBA options for their customers or members to help shore up the businesses to survive. We know 2020 stunk,” he said. “As
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5 Reasons to Increase SBA Lending at Your Bank or Credit Union
Abrigo
JULY 20, 2021
During Abrigo’s recent ThinkBIG Conference, credit underwriting and loan portfolio risk management trainer and consultant Michael Wear , CRC , of 39 Acres Corp. However, lenders might consider SBA options for their customers or members to help shore up the businesses to survive. We know 2020 stunk,” he said. “As
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Why banking technology makes sense – recession or not
Abrigo
MARCH 2, 2023
But when a storm hit, limitations on the back end due to its insufficient operations technology hampered Southwest’s ability to handle the most basic customer service in that industry: getting customers safely where they needed to be. Executives took a pay cut. To its credit, Southwest was investing in customer-facing technology.
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Pulling Off Inside Jobs
Independent Banker
SEPTEMBER 25, 2014
Saving money by conducting inside risk management and compliance reviews. As a group, community banks spend substantial funds hiring outside consultants to help with various management functions, and a substantial share of dollars are spent to help oversee their risk management and compliance activities.
OCC issues proposed rule on fair access to financial services
CFPB Monitor
NOVEMBER 24, 2020
The OCC notes that, in the case of energy industries, the terminated services were not limited to lending “where risk factors might justify not serving a particular client,” but also included advisory and other services unconnected to credit or operational risk.
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10 Top Banking Podcasts You Should be Listening to
Abrigo
MAY 5, 2022
Thankfully for bank and credit union executives, lenders, risk managers, and Bank Secrecy Act (BSA) Officers, banking podcasts and podcasts for credit unions are plentiful, and options are growing. And for many people heading back to the office from remote work, podcasts can be a productive and enjoyable way to pass the commuting time.
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Federal banking agencies Issue “Crypto Asset Roadmap” for 2022 guidance; OCC confirms prior interpretive letters on crypto (but adds no-objection requirement)
CFPB Monitor
NOVEMBER 29, 2021
To obtain supervisory non-objection, a bank must demonstrate in writing that it understands any relevant compliance obligations, including under the Bank Secrecy Act, federal securities laws, the Commodity Exchange Act, and consumer protection laws.
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Regulation and Compliance: Ready for Review
Independent Banker
SEPTEMBER 25, 2014
As David Barr, spokesperson for the FDIC, points out, “a vast majority of community banks remain well-rated and exhibit satisfactory corporate governance programs and compliance management systems.”. Be aware of existing or emerging risk concerns. increased operational risks. in Kent, Ohio.
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Five Challenges to Your Bank of the Future and Ideas to Overcome Them
Jeff For Banks
OCTOBER 29, 2016
In 2006, when the median asset size within my firm's profitability outsourcing service was $696 million, the operating cost per business checking account was $586 per year. billion, and the operating cost per business checking account is $710. In 2016, the median sized financial institution is $1.1 deposit market share in 2012 to a 80.7%
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Bank Board Reports: War and Peace or Cliff Notes?
Jeff For Banks
MAY 16, 2015
High level risk management reports (because more granular risk reports are reviewed in Committee) and trends. And most Board members have full time jobs! Financial reports for the current period, and trends. Budget variance reports 3. Financial progress towards strategic plan 4. Financial condition and performance versus peer 5.
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Betting the Bank on Your IT Experts
Jack Henry
JULY 2, 2014
Today, a proper IT risk management infrastructure has a direct impact on the character and value of a financial institution which places an unprecedented value on key IT employees. I would be remiss to discuss outsourcing today without mentioning vendor management.
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Fighting Digital with Digital
Independent Banker
FEBRUARY 24, 2016
Marketplace-driven digital-platform lenders are also structured so that credit risk is held by the investor funding the deal. FDIC-insured deposits largely solve this problem for banks. a community bank operating and software services firm in Wilmington, N.C. Core deposits also come at much lower costs.
April 2014: A Busy Month for Fraud Alerts!
Jack Henry
APRIL 30, 2014
One such attack by the group Unlimited Operations was able to net over $40 million. The FDIC provides a listing of resources that can be used to better identify and mitigate potential cyber-risks. The FDIC encourages subscribing to these various groups to ensure that you receive regular security alerts, tips, and other updates.
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Breaches, Beginnings And A Buying Spree
PYMNTS
JULY 16, 2018
Citizens access will offer consumers FDIC-insured online savings and CD accounts with attractive rates and no fees to customers across the United States. Citizens Financial Group officially announced the launch of its nationwide, direct-to-consumer digital bank earlier this week: Citizens Access. So what did we learn this week?
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The most popular CECL, ALM, & portfolio risk blogs of the year
Abrigo
DECEMBER 22, 2023
Takeaway 3 Updates on interest rate forecasting and best practices for managing CRE risk were among the most-read blogs. Abrigo's most popular risk management blogs over the last 12 months cover topics that continue to catch the attention of professionals and regulators. Which credit areas need routine "maintenance"?
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Digital Disruption
Independent Banker
NOVEMBER 25, 2015
Unlike highly regulated, FDIC-insured banks, which are subject to strict, expensive security standards designed to protect consumers’ sensitive information, FinTech companies are barely regulated and seldom examined. Consider the 80 million millennials who would rather manage their finances with a smartphone app than visit a bank branch.
Financial institutions face increasingly stringent federal breach reporting requirements
CFPB Monitor
APRIL 28, 2022
In 2005, the federal prudential regulators—including the Board of Governors of the Federal Reserve System (Federal Reserve), Federal Deposit Insurance Corporation (FDIC), and Office of the Comptroller of the Currency (OCC)—issued Interagency Guidance on Response Programs for Unauthorized Access to Customer Information and Customer Notice.
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The Current Banking Crisis – 10 Not So Apparent Lessons
South State Correspondent
MARCH 15, 2023
While we wrote about the root cause of the failure of Silicon Valley Bank (SVB) HERE , the lessons of the current banking crisis go beyond interest rate risk management. While interest rate risk caused the most significant impact on value, several other factors contributed to the terminality of each bank that was closed.
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More Gain, Less Pain
Independent Banker
DECEMBER 13, 2015
Risk levels have a five-point range. The second part measures cybersecurity maturity levels within five domains: cyber risk management and oversight; threat intelligence and collaboration; cybersecurity controls; external dependency management; and cyber incident management and resilience. Advice for others.
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More Gain, Less Pain
Independent Banker
NOVEMBER 24, 2015
Risk levels have a five-point range. The second part measures cybersecurity maturity levels within five domains: cyber risk management and oversight; threat intelligence and collaboration; cybersecurity controls; external dependency management; and cyber incident management and resilience. Advice for others.
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LendingClub Settles With SEC, DOJ
PYMNTS
OCTOBER 1, 2018
The DOJ investigation centered on whether LendingClub had – between January 2009 to September 2010 – misled its FDIC-insured loan originator, WebBank , leading the bank to underwrite over 200 loans that did not conform to the bank’s lending requirements. The DOJ Finding. So, Now What?
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