Banking

The probability of a trade war-induced recession is unclear and fluctuates almost daily. However, the possibility is real enough that banks have a responsibility to prepare for a serious economic downturn on par with the 2008 financial crisis.

The payments fintech is partnering with credit unions such as Michigan State Federal Credit Union to offer cash-back rewards on debit transactions using account-to-account payment schemes.

The Department of Justice is seeking to terminate a Biden-era lending discrimination settlement with Lakeland Bank. Last month, the DOJ took similar action in a case involving Mississippi-based Trustmark National Bank.

Forbright Bank was reprimanded by the FDIC last year in connection with its use of brokered deposits. To address the issue, the Maryland-based lender has built out a digital banking arm.

The 15 largest banks had an average NCO ratio of 0.66% in the first quarter.

The Florida bank plans to buy Villages Bancorp for $710.8 million, marking its second in-state acquisition of 2025.

Maryland passes legislation to oversee the earned wage access industry; Truist Financial adds ex-Morgan Stanley Finance Chief Jonathan Pruzan to its board; The Citizens Bank agrees to buy a First Capital Bank branch in North Carolina; and more in this week's banking news roundup.

The transaction comes as the megabank is determined to simplify its operating model and shed units that have slower growth prospects or aren't core to its business.