ARLINGTON, Va. - (01/10/06) A representative of theAmerican Bankers Association said last night the bankers groupsupports credit unions efforts to enact a risk-based capitalsystem for credit unions, but not the one NCUA has proposed toCongress. We think its wise that you (credit unions)have risk-based standards that are comparable to the banksrisk-based standards, said Keith Leggett, economist for theABA said during a debate on risk-based capital with NAFCU PresidentFred Becker before the Metropolitan Area CU Managers Association.The ABA, though, continues to oppose the NCUA proposal on arisk-based system sent to Congress because it fails to properlymeasure certain risks for credit unions, like the capital investedin corporate credit unions and the 1% of assets deposited with theNCUSIF, said Leggett, who called on credit unions and NCUA to workwith the bankers on developing a new risk-based system based on theso-called Basel 1A capital plan. He said a risk-based system forcredit unions should recognize the numerous risks to capital posedby the marketplace other than credit risk, including operationalrisk, interest rate risk, liquidity risk and reputational risk. ButBecker said the proposal introduced by NCUA is similar to arisk-based system currently in use by the FDIC for banks. He saidNCUAs current minimum capital rules, known as promptcorrective action, or PCA, need to be changed to recognize thevarying degrees of risk posed by different credit unions.The current system needs to be improved and this doesit, said Becker.
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Synovus Financial demonstrated at an industry conference how it is using Microsoft's Copilot to help its staff address customers' concerns.
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The U.S. arm of Spanish banking giant Santander has hired Swati Bhatia to oversee retail banking and its digital transformation efforts. Bhatia joins at "an inflection point" for the company, which aims to be "a digital bank with branches," CEO Tim Wennes said.
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Mariya Rosberg is named Americas head of banking and financial services at Marsh McLennan's Oliver Wyman unit; startup ZayZoon raised $15 million in a new funding round; and more in the weekly banking news roundup.
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Once a prominent figure spurring financial institutions to engage in cryptocurrency, Bankman-Fried's downslide began with the collapse of the digital asset exchange FTX in late 2022 and hit rock bottom with his sentencing to 25 years in prison.
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