There were six noteworthy regulatory and compliance updates for banks and credit unions in March of 2023. Below are the details on these changes and how they affect you and your institution.
FDIC Acts to Protect All Depositors of the former Silicon Valley Bank, Santa Clara, California
The Federal Deposit Insurance Corporation (FDIC) today transferred all deposits—both insured and uninsured—and substantially all assets of the former Silicon Valley Bank of Santa Clara, California, to a newly created, full-service FDIC-operated ‘bridge bank’ in an action designed to protect all depositors of Silicon Valley Bank.
Why Is This Important to Me?
- It is especially important to understand what is happening in the industry at this time. Please listen to our free webinar that addresses the problems faced by recently failed banks & anticipate questions clients may be asking: Breaking: Recent Bank Failures: What Does It Mean to Your Institution?
- We also have an upcoming FDIC webinar: FDIC Insurance Review: How Much of My Deposits are Covered?·
- Additionally, please see our most recent FAQ blog: Recent Bank Failure FAQs for Frontline Employees
Bank Term Funding Program Created
The Bank Term Funding Program (BTFP) was created to support American businesses and households by making additional funding available to eligible depository institutions to help assure banks have the ability to meet the needs of all their depositors.
Why Is This Important to Me?
This is the most noteworthy financial industry news at this time. It’s important to understand what is going on in the industry.
Joint Statement Regarding Assistance for First Republic Bank Released
The following statement was released by Secretary of the Treasury Janet L. Yellen, Federal Reserve Board Chair Jerome H. Powell, FDIC Chairman Martin J. Gruenberg, and Acting Comptroller of the Currency Michael J. Hsu: “Today, 11 banks announced $30 billion in deposits into First Republic Bank. This show of support by a group of large banks is most welcome and demonstrates the resilience of the banking system.”
Why Is This Important to Me?
It is especially important to understand what is happening in the industry at this time.
Federal Reserve Announces July Launch for the FedNow Service
The Federal Reserve has announced that its FedNow Services will start operating in July and provided details on preparations for launch.
Why Is This Important to Me?
Through financial institutions participating in the FedNow Service, businesses and individuals will be able to send and receive instant payments at any time of day, and recipients will have full access to funds immediately, giving them greater flexibility to manage their money and make time-sensitive payments.
CFPB Updates HMDA Charts
The Consumer Financial Protection Bureau (CFPB) has updated the 2023 “Coverage Charts” section of the HMDA Reporting Requirements compliance resources page. The charts reflect the reduced 25 closed-end loans in each of the previous two calendar years threshold for reporting closed-end applications and loans.
Why Is This Important to Me?
All of OCL’s Regulation C/Home Mortgage Disclosure Act courseware has been updated to reflect this change.
FHFA Delays Start of Upfront DTI Ratio Fee
The Federal Housing Finance Agency (FHFA) announced it has delayed the effective date of the debt-to-income (DTI) ratio fee until August 1, 2023.
Why Is This Important to Me?
Share this delay with your lending departments.
About the Author
Rachel Davis
Product Manager at OnCourse Learning
Rachel Davis is the Product Manager of GRC and professional education for banks, credit unions, and non-bank financial services at OnCourse Learning. Rachel has worked in the financial services industry for 12 years and keeps up to date on financial industry hot topics. Rachel received her Bachelor of Arts in English Literature from Saint Louis University.
About the Author
Rachel Davis
Product Manager at OnCourse Learning
Rachel Davis is the Product Manager of GRC and professional education for banks, credit unions, and non-bank financial services at OnCourse Learning. Rachel has worked in the financial services industry for 12 years and keeps up to date on financial industry hot topics. Rachel received her Bachelor of Arts in English Literature from Saint Louis University.