FDIC

The banking regulator is in early discussions with trade groups to build an organization for certifying tech providers that pass voluntary due diligence checks.

The agency will give qualified new-bank applicants a contingent authorization within 120 days of applying, with an additional year after that to organize the bank before final green light. 

Augustus National Bank, which is working to fulfill the conditions for its de novo OCC charter, was approved for federal deposit insurance by the FDIC.

The North Carolina-based bank plans to make additional monthly payments of $500 million-$1 billion to the Federal Deposit Insurance Corp., in order to reduce $35 billion of debt tied to its acquisition of the failed Silicon Valley Bank.

Banks must tell regulators of a serious breach within 36 hours under a codified rule. Regulators say they will tell banks 72 hours of their own data breaches, in a memo nobody can enforce.

The bank regulators say they will limit the sending and storage of highly sensitive supervisory information, including by using alternatives such as on-site reviews and requiring notifying banks of data compromises within 72 hours.

Joint guidance says borrowers unauthorized to work in the U.S. may present elevated credit risk and urges banks to account for immigration-related repayment uncertainty in underwriting. 

The Office of the Comptroller of the Currency and Federal Deposit Insurance Corp. encouraged banks to heed Fincen guidance expanding the PATRIOT Act's safe harbor for voluntary information sharing between banks to combat fraud.

Researchers at the Federal Reserve Bank of New York analyzed more than 3,000 historical bank runs and found that weak financial fundamentals — rather than pure depositor panic — determine whether a bank run translates into a bank failure or broader financial crisis. 

Organizers of Bank of St. George were close to the finish line in 2020 when the COVID-19 pandemic arrived. Now CEO Bruce Jensen says the planned bank should open its doors by the end of the year.

The buy now/pay later provider and aspiring neobank submitted applications to the Utah Department of Financial Institutions and the Federal Deposit Insurance Corp. to establish Klarna Bank.

Banking law scholars warn the Supreme Court's ruling in Trump v. Slaughter will further politicize bank regulation, clouding policy expectations for firms and reshaping the balance of power between the White House and financial regulators.

The Federal Deposit Insurance Corp. issued proposals Thursday that would reduce planning requirements for big banks and slash deposit insurance prices, citing the financial health of the Deposit Insurance Fund.

William Isaac led the Federal Deposit Insurance Corp. through the banking and thrift crises of the 1980s and was a frequent commentator on bank regulation after his time in public service.

Chair Travis Hill said the Silicon Valley Bank failure showed banks can't always sell securities fast enough to cover deposit outflows, but acknowledged the "stigma problem" with discount window borrowing remains unsolved.

Regulators have suggested changes to the ratings system they use to gauge banks' safety and soundness that would reduce scrutiny of management quality. It would leave them blind to clear signs of future problems.

Regulators have signaled that the speed of progress in generative and agentic artificial intelligence makes producing definitive guidance impractical. That does not remove banks' obligation to face up to their risks.

In passing the Depository Institutions Deregulation and Monetary Control Act, Congress intended to create national rules that would guide lending across state borders. States can't simply opt out of them.

Chair Travis Hill wants to shift resolution planning away from lengthy bank-generated narratives and toward rapid access to critical operational data during failures.

The FDIC's recent analysis of the deposit flight that helped take down Silicon Valley, Signature and First Republic banks in 2023 is informative. However, it leaves unanswered some important questions about regulators' assumptions related to brokered deposits.