The E-mail Banking News
(Bank Regulatory News)

February 2019

Yennik, Inc. has clients in 43 states that rely on our cybersecurity audits to ensure proper Internet security settings and to meet the independent diagnostic test requirements of FDIC, OCC, FRB, and NCUA, which provides compliance with Gramm-Leach Bliley Act 501(b) s well as the penetration test complies with the FFIEC Cybersecurity Assessment Tool regarding resilience testing The cybersecurity penetration audit and Internet security testing is an affordable-sophisticated process than goes far beyond the simple scanning of ports.  The audit focuses on a hacker's perspective, which will help you identify real-world cybersecurity weaknesses.  For more information, give R. Kinney Williams a call today at 806-798-7119 or visit http://www.internetbankingaudits.com/.
FFIEC information technology audits - As a former bank examiner with over 40 years IT audit experience, I will bring an examiner's perspective to the FFIEC information technology audit for bankers in Texas, New Mexico, Colorado, and Oklahoma.

February 14, 2019 - NCUA - Supervisory Committee Audit Rule Changes Proposed - The National Credit Union Administration Board held its second open meeting of 2019 at the agency’s headquarters today and unanimously approved one item: www.ncua.gov/newsroom/press-release/2019/supervisory-committee-audit-rule-changes-proposed

February 14, 2019 - Advanced Notice of a Meeting under Expedited Procedures - A closed meeting of the Board of Governors of the Federal Reserve System will be held under expedited procedures at 2:00 p.m. on February 19, 2019. Matter(s) considered: Proposed Semiannual Monetary Policy Report and Statement to the Congress. www.federalreserve.gov/aboutthefed/boardmeetings/20190219closed.htm

February 13, 2019 - Amendments to the Stress Testing Rules for National Banks and Federal Savings Associations: Notice of Proposed Rulemaking - The Office of the Comptroller of the Currency published a notice of proposed rulemaking in the Federal Register on February 13, 2019, that would amend the OCC’s stress testing rule at 12 CFR 46. www.occ.treas.gov/news-issuances/bulletins/2019/bulletin-2019-7.html

February 13, 2019 - Issuance of Final Rule on Loans in Areas Having Special Flood Hazards—Private Flood Insurance - The Biggert-Waters Flood Insurance Reform Act of 2012 amended Federal flood insurance legislation to require the FDIC, the Office of the Comptroller of the Currency, the Board of Governors of the Federal Reserve System, the National Credit Union Administration, and the Farm Credit Administration to issue a final rule that directs insured depository institutions to accept private flood insurance as defined by the Biggert-Waters Act. www.fdic.gov/news/news/financial/2019/fil19008.html

February 13, 2019 - Stress Testing Household Debt - Neil Bhutta, Jesse Bricker, Lisa J. Dettling, Jimmy Kelliher, and Steven M. Laufer - We estimate a county-level model of household delinquency and use it to conduct "stress tests" of household debt. www.federalreserve.gov/econres/feds/files/2019008pap.pdf

February 13, 2019 - Monetary Policy Strategies for a Low-Rate Environment - Ben S. Bernanke, Michael T. Kiley, and John M. Roberts - In low-rate environments, policy strategies that involve holding rates “lower for longer” may mitigate the effects of the effective lower bound. www.federalreserve.gov/econres/feds/files/2019009pap.pdf

February 13, 2019 - Federal Reserve Board begins 2019 Survey of Consumer Finances - The Federal Reserve Board in March will begin its Survey of Consumer Finances, a statistical study of household finances that will provide policymakers with important insight into the economic condition of a broad cross section of American families. www.federalreserve.gov/newsevents/pressreleases/other20190213a.htm 

February 12, 2019 - OCC Hosts Compliance and Operational Risk Workshops in Milwaukee - The Office of the Comptroller of the Currency will host two workshops in Milwaukee, Wisconsin, at the Hilton Garden Inn Milwaukee Downtown, March 26 and 27, for directors of national community banks and federal savings associations supervised by the OCC. www.occ.gov/news-issuances/news-releases/2019/nr-occ-2019-16.html

February 12, 2019 - Emerging Trends in the U.S. and Colorado Economies - By Alison Felix Economist and Branch Executive Federal Reserve Bank of Kansas City Denver Branch.   www.kansascityfed.org/~/media/files/publicat/speeches/2019/2019-felix-energyfinancediscussiongroup-02-12.pdf

February 12, 2019 - FDIC Extends Comment Period Related to its Request for Information on the Deposit Insurance Application Process - The Federal Deposit Insurance Corporation has extended the comment period related to the Request for Information on the Deposit Insurance Application Process until March 31. The RFI is part of the FDIC's ongoing efforts to enhance transparency, efficiency, and accountability. www.fdic.gov/news/news/press/2019/pr19007.html

February 12, 2019 - Gender Diversity on Bank Board of Directors and Performance - Ann L. Owen and Judit Temesvary.  www.federalreserve.gov/econres/notes/feds-notes/gender-diversity-on-bank-board-of-directors-and-performance-20190212.htm

February 12, 2019 - Speech by Chairman Powell on encouraging economic development in high-poverty rural communities At “Rural Places, Rural Spaces: Closing Financial Services Gaps in Persistent Poverty America,” a policy forum sponsored by Hope Enterprise Corporation, Mississippi Valley State University, Itta Bena, Mississippi www.federalreserve.gov/newsevents/speech/powell20190212a.htm

February 12, 2019 - Interagency final rule implements flood insurance reform provisions - Five federal regulatory agencies issued a joint final rule to implement provisions of the Biggert-Waters Flood Insurance Reform Act of 2012 requiring regulated institutions to accept certain private flood insurance policies in addition to National Flood Insurance Program policies.
Press Release: www.federalreserve.gov/newsevents/pressreleases/bcreg20190212a.htm
Press Release: www.fdic.gov/news/news/press/2019/pr19006.html
Press Release: www.occ.gov/news-issuances/news-releases/2019/nr-ia-2019-15.html
Press Release: www.ncua.gov/newsroom/press-release/2019/new-rule-covers-private-flood-insurance

February 11, 2019 - Comptroller of the Currency Supports CFPB Proposed Rule on Short-Term Small-Dollar Lending - Comptroller of the Currency Joseph Otting today issued the following statement supporting Director Kathy Kraninger and the Consumer Financial Protection Bureau’s proposed rule rescinding requirements that lenders make certain underwriting determinations before issuing short-term small-dollar loans. www.occ.gov/news-issuances/news-releases/2019/nr-occ-2019-14.html

February 11, 2019 - Emerging Trends in the U.S. and Colorado Economies By Alison Felix Economist and Branch Executive Federal Reserve Bank of Kansas City Denver Branch.   www.kansascityfed.org/~/media/files/publicat/speeches/2019/2019-felix-airforce-02-11.pdf

February 11, 2019 - A Conversation on Community Banking by Governor Michelle W. Bowman At the Conference for Community Bankers, sponsored by the American Bankers Association, San Diego, California www.federalreserve.gov/newsevents/speech/bowman20190211a.htm

February 10, 2019 - Speech by Vice Chairman for Supervision Randal K. Quarles - Ideas of Order: Charting a Course for the Financial Stability Board At Bank for International Settlements Special Governors Meeting, Hong Kong.  www.federalreserve.gov/newsevents/speech/quarles20190210a.htm

February 8, 2019 - NCUA Review Finds No Bank Secrecy Act Data Breach - Upon learning of the recent spear phishing campaign targeting Bank Secrecy Act officers at credit unions, the NCUA conducted a comprehensive review of its security logs and alerts. www.ncua.gov/newsroom/press-release/2019/ncua-review-finds-no-bank-secrecy-act-data-breach

February 8, 2019 - Technology’s Impact on Farming and the Rural Midwest - By David Oppedahl - On November 27, 2018, the Federal Reserve Bank of Chicago held a conference to explore the opportunities and challenges presented by new technologies to farms and rural areas in the Midwest and other parts of the U.S. Experts from academia, industry, and policy institutions gathered to discuss how technological advances have reshaped the rural economy and how they may affect its future. www.chicagofed.org/publications/chicago-fed-letter/2019/411

February 8, 2019 - Community Bank Leverage Ratio: Notice of Proposed Rulemaking - The Office of the Comptroller of the Currency, the Board of Governors of the Federal Reserve System, and the Federal Deposit Insurance Corporation are issuing a notice of proposed rulemaking that would provide a simplified measure of capital adequacy for qualifying community banking organizations consistent with section 201 of the Economic Growth, Regulatory Relief, and Consumer Protection Act. www.occ.treas.gov/news-issuances/bulletins/2019/bulletin-2019-6.html

February 8, 2019 - Credit and Liquidity Programs and the Balance Sheet - Recent balance sheet trends, weekly chart update.  www.federalreserve.gov/monetarypolicy/bst_recenttrends.htm

February 7, 2019 - Federal Reserve Bank of St. Louis President James Bullard discussed “Three Themes for Monetary Policy in 2019” at St. Cloud State University’s 57th Winter Institute on Thursday. www.stlouisfed.org/news-releases/2019/02/07/bullard-three-themes-monetary-policy-2019

February 7, 2019 - Statistical Release - Consumer Credit - G.19 - In 2018, consumer credit increased 5 percent, with revolving and nonrevolving credit increasing 2-3/4 percent and 5-1/2 percent, respectively. Consumer credit increased at a seasonally adjusted annual rate of 6-1/2 percent in the fourth quarter and at a rate of 5 percent in December. www.federalreserve.gov/releases/g19/current/default.htm

February 7, 2019 - Robust Inference in First-Price Auctions: Experimental Findings as Identifying Restrictions - Serafin J. Grundl and Yu Zhu - In laboratory experiments bidding in first-price auctions is more aggressive than predicted by the risk-neutral Bayesian Nash Equilibrium - a finding known as the overbidding puzzle. www.federalreserve.gov/econres/feds/files/2019006pap.pdf

February 7, 2019 - Banks as Regulated Traders - Antonio Falato, Diana Iercosan, and Filip Zikes - This paper uses detailed high-frequency regulatory data to evaluate whether trading increases or decreases systemic risk in the U.S. banking sector. www.federalreserve.gov/econres/feds/files/2019005pap.pdf
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February 7, 2019 - Federal Reserve Board issues enforcement action with former employee of SunTrust Bank - Consent Prohibition against Alison Keefe, former employee of SunTrust Bank, Atlanta, Georgia, for violating bank overdraft policies for her own benefit. www.federalreserve.gov/newsevents/pressreleases/enforcement20190207a.htm

February 6, 2019 - Federal Reserve Board announces approval of applications by Regions Bank - The Federal Reserve Board on Tuesday announced its approval of the applications under section 9 of the Federal Reserve Act by Regions Bank, Birmingham, Alabama, to establish branches in Georgia, Illinois, Missouri, Tennessee, and Texas. www.federalreserve.gov/newsevents/pressreleases/orders20190206a.htm

February 5, 2019 - NCUA Board Chairman McWatters Congratulates Todd Harper on Board Nomination.  www.ncua.gov/newsroom/press-release/2019/ncua-board-chairman-mcwatters-congratulates-todd-harper-board-nomination

February 5, 2019 - OCC Releases Dodd-Frank Act Stress Test Scenarios for 2019 - The Office of the Comptroller of the Currency released economic and financial market scenarios for use in the upcoming stress tests for covered institutions. www.occ.gov/news-issuances/news-releases/2019/nr-occ-2019-13.html

February 5, 2019 - Grovetta Gardineer Named Senior Deputy Comptroller for Bank Supervision Policy - The Office of the Comptroller of the Currency today announced Grovetta Gardineer will become its Senior Deputy Comptroller for Bank Supervision Policy upon the retirement of Grace Dailey on March 2, 2019. www.occ.gov/news-issuances/news-releases/2019/nr-occ-2019-12.html

February 5, 2019 - Proposed Rulemaking to Revise the Deposit Insurance Assessment System to Apply the Community Bank Leverage Ratio Framework - On December 18, 2018, the FDIC Board of Directors authorized publication of a Notice of Proposed Rulemaking that would apply the Community Bank Leverage Ratio framework proposed by the FDIC, Federal Reserve, and OCC on November 21, 2018, to the deposit insurance assessment system. www.fdic.gov/news/news/financial/2019/fil19006.html

February 5, 2019 - FDIC Issues List of Banks Examined for CRA Compliance - The list covers evaluation ratings that the FDIC assigned to institutions in November 2018. www.fdic.gov/news/news/press/2019/pr19005.html

February 5, 2019 - Living at Home Ain't Such a Drag (on Spending): Young Adults' Spending In and Out of Their Parents' Home - Aditya Aladangady, Laura Feiveson, and Andrew Paciorek - In the wake of the Great Recession, the share of young adults living with their parents increased sharply, and it has remained elevated since www.federalreserve.gov/econres/notes/feds-notes/young-adults-spending-in-and-out-of-their-parents-home-20190205.htm

February 5, 2019 - Federal Reserve Board releases scenarios for 2019 Comprehensive Capital Analysis and Review and Dodd-Frank Act stress test exercises - Stress tests, by ensuring that banks have adequate capital to absorb losses, help make sure that they will be able to lend to households and businesses even in a severe recession. www.federalreserve.gov/newsevents/pressreleases/bcreg20190205b.htm

February 5, 2019 - Federal Reserve Board finalizes set of changes that will increase the transparency of its stress testing program for nation's largest and most complex banks - The Federal Reserve Board on Tuesday finalized a set of changes that will increase the transparency of its stress testing program for the nation's largest and most complex banks.  www.federalreserve.gov/newsevents/pressreleases/bcreg20190205a.htm

February 5, 2019 - Federal Reserve Board issues enforcement action with former chairman of Mariner's Bancorp. www.federalreserve.gov/newsevents/pressreleases/enforcement20190205a.htm

February 4, 2019 - Statement on Chair Powell's and Vice Chair Clarida's meeting with the President and Treasury Secretary.   www.federalreserve.gov/newsevents/pressreleases/other20190204a.htm

February 4, 2019 - Technology�s Impact on Farming and the Rural Midwest By David Oppedahl - On November 27, 2018, the Federal Reserve Bank of Chicago held a conference to explore the opportunities and challenges presented by new technologies to farms and rural areas in the Midwest and other parts of the U.S. Experts from academia, industry, and policy institutions gathered to discuss how technological advances have reshaped the rural economy and how they may affect its future. www.chicagofed.org/publications/chicago-fed-letter/2019/411

February 4, 2019 - Thresholds Increase for the Major Assets Prohibition of the Depository Institution Management Interlocks Act Rules: Notice of Proposed Rulemaking - The Office of the Comptroller of the Currency published a notice of proposed rulemaking in the Federal Register on January 31, 2019, that would increase the major assets prohibition thresholds for management interlocks in the OCC�s rule implementing the Depository Institution Management Interlocks Act. www.occ.treas.gov/news-issuances/bulletins/2019/bulletin-2019-5.html

February 4, 2019 - Voluntary Private Education Loan Rehabilitation Programs - The FDIC and the Board of Governors of the Federal Reserve System jointly are providing an advisory on Voluntary Private Education Loan Rehabilitation Programs to make financial institutions aware of an amendment to section 623 of the Fair Credit Reporting Act www.fdic.gov/news/news/financial/2019/fil19005.html

February 4, 2019 - Bank Holding Companies/Savings and Loan Holding Companies/Change in Control - 2019 Letters - Letter to Peter J. Morgan III, Esq., granting a request by The Charles Schwab Corporation for an extension of time to comply with the requirement to submit an implementation plan pursuant to section 217.121(b)(1) of the Board�s Regulation Q. www.federalreserve.gov/supervisionreg/legalinterpretations/bhc_changeincontrol20190104a.pdf

February 4, 2019 - Bank Holding Companies/Savings and Loan Holding Companies/Change in Control - 2019 Letters - Letter to Mr. John J. Bellini, granting the request by Auto Club Trust, FSB, Dearborn, Michigan, for an exception from the tying prohibitions in section 5(q) of the Home Owners' Loan Act of 1933, as amended (12 U.S.C. � 1464(q)). www.federalreserve.gov/supervisionreg/legalinterpretations/bhc_changeincontrol20190107a.pdf

February 4, 2019 - Voluntary Private Education Loan Rehabilitation Programs - The Board of Governors of the Federal Reserve System and the Federal Deposit Insurance Corporation are issuing the attached advisory to inform financial institutions about the provisions in section 602 of the Economic Growth, Regulatory Relief, and Consumer Protection Act www.federalreserve.gov/supervisionreg/srletters/sr1902.htm

February 4, 2019 - Legal Interpretations-Bank Holding Company Act, December 13, 2018 (7 letters), January 4 and 7, 2019.   www.federalreserve.gov/supervisionreg/legalinterpretations/bhc_changeincontrol2018.htm

February 1, 2019 - NCUA Issues Prohibition Order - Linda Pelham, a former employee of Everglades Federal Credit Union in Clewiston, Florida, agreed and consented to the issuance of a prohibition order and agreed to comply with all of its terms to settle and resolve the NCUA Board�s claims against her. www.ncua.gov/newsroom/press-release/2019/ncua-issues-prohibition-order

February 1, 2019 - OCC Releases CRA Evaluations for 48 National Banks and Federal Savings Associations - The Office of the Comptroller of the Currency today released a list of Community Reinvestment Act performance evaluations that became public during the period of January 1, 2019 through January 31, 2019. www.occ.gov/news-issuances/news-releases/2019/nr-occ-2019-11.html

February 1, 2019 - Are Disappearing Employer Pensions Contributing to Rising Wealth Inequality? - John Sabelhaus and Alice Henriques Volz - The share of U.S. workers covered by a traditional employer-sponsored pension plan has declined dramatically over the past few decades. www.federalreserve.gov/econres/notes/feds-notes/are-disappearing-employer-pensions-contributing-to-rising-wealth-inequality-20190201.htm 

February 1, 2019 - Credit and Liquidity Programs and the Balance Sheet - Recent balance sheet trends, weekly chart update.  www.federalreserve.gov/monetarypolicy/bst_recenttrends.htm

February 1, 2019 - Statistical Release - Foreign Exchange Rates - G.5 - Effective on February 4, 2019, the Federal Reserve Board staff will make major changes to the methodology used to construct the trade-weighted dollar indexes in the H.10, G.5, and G.5A releases. These changes will affect the calculation of index weights and country composition. www.federalreserve.gov/releases/g5/current/default.htm

February 1, 2019 - Evaluating the conditionality of judgmental forecasts - Travis J. Berge, Andrew C. Chang, and Nitish R. Sinha - We propose a framework to evaluate the conditionality of forecasts. The crux of our framework is the observation that a forecast is conditional if revisions to the conditioning factor are faithfully incorporated into the remainder of the forecast. www.federalreserve.gov/econres/feds/files/2019002pap.pdf

February 1, 2019 - Monetary Policy Options at the Effective Lower Bound: Assessing the Federal Reserve's Current Policy Toolkit - Hess Chung, Etienne Gagnon, Taisuke Nakata, Matthias Paustian, Bernd Schlusche, James Trevino, Diego Vil�n, and Wei Zheng - We simulate the FRB/US model and a number of statistical models to quantify some of the risks stemming from the effective lower bound on the federal funds rate and to assess the efficacy of adjustments to the federal funds rate target, balance sheet policies, and forward guidance to provide monetary policy accommodation in the event of a recession. www.federalreserve.gov/econres/feds/files/2019003pap.pdf

February 1, 2019 - The Monetary Base in Allan Meltzer's Analytical Framework - Edward Nelson - Although he was based in the United States, leading monetarist Karl Brunner participated in debates in the United Kingdom on monetary analysis and policy from the 1960s to the 1980s. www.federalreserve.gov/econres/feds/2019.htm#2019001

February 1, 2019 - A Collateral Theory of Endogenous Debt Maturity - R. Matthew Darst and Ehraz Refayet - This paper studies optimal debt maturity when firms cannot issue state contingent claims and must back promises with collateral. www.federalreserve.gov/econres/feds/2017.htm#2017057

February 1, 2019 - Speech by Governor Brainard on strengthening the Community Reinvestment Act At "Research Symposium on the Community Reinvestment Act" hosted by the Federal Reserve Bank of Philadelphia, Philadelphia, Pennsylvania.  www.federalreserve.gov/newsevents/speech/brainard20190201a.htm

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