FDIC

The former head of the agency said the proposed changes to the enhanced supplementary leverage ratio will make banks vulnerable to disruption and failure.

In a report, the watchdog said the economic environment and competition instead have driven trends in small-business lending.

The appointments are on top of other recent personnel changes under Chairman Jelena McWilliams, who took the reins of the agency in June.

The OCC required the company to raise more capital and complete a CRA plan. Varo Bank still needs FDIC and Fed approval before opening.

The agencies had proposed revisions designed to make compliance less complex, but banks have expressed concern that the plan could have the opposite effect.

Unilateral approaches to bank regulation are risky, but the OCC's plan to seek public comment independent of the other agencies could help shed light on a CRA debate that is now being waged internally.

The agency says it will act independently of other regulators to release a notice asking for public input on revamping the decades-old law.

A huge chunk of the profit increase in the second quarter was due to a lower tax rate, but rising net interest margins and loan growth signal that institutions continue to derive revenue from their loan book.

Before the passage of the recent regulatory relief law, only banks with assets of less than $1 billion were on an 18-month exam schedule.

A top regulator has signaled that the banking agencies are receptive to extending the comment deadline, after banks raised concerns about a proposed revision to the ban on proprietary trading.