OCC

More than a dozen lawmakers wrote to the banking agencies Friday, arguing that any regulatory reforms to the Community Reinvestment Act should focus on expanding access to credit.

While industry officials welcomed a bulletin from the Office of the Comptroller of the Currency encouraging banks to develop alternatives to payday loans, they are making no commitments to offer such products.

The remarks by the comptroller of the currency came as his agency released a new report on emerging risks in the banking industry.

The NCUA board is considering adding as many as two additional payday alternative loan options for credit unions, and regulators have clarified a rule on severance claims after involuntary credit union liquidations.

Long-awaited modifications to proprietary trading ban are to be unveiled at an open meeting on May 30.

The agency's bulletin opens the door to banks' making more short-term loans to borrowers with lower credit scores — with few parameters beyond "sound underwriting."

Combined with another key change that would give banks more leeway in trading, the revisions on hedging could further blunt the impact of the rule named after a former Fed chairman.

Commenters will have more time to weigh in on the plan, by the Fed and OCC, that has triggered divisions among the federal regulators.

With Congress set to approve a regulatory relief bill and vote on an FDIC chairman, banks will soon see the deregulation they’ve long been anticipating.

The proposed change would give banks more leeway in making trades and put more onus on regulators to challenge their judgments, sources said.