Banking

This week in global news: Ripple is working with the Pacific island nation of Palau on a stablecoin test, Klarna is dropping the Kosma brand from its open banking service, and more.

Banks locked in funding by offering more enticing rates on certificates of deposit last quarter, but rebuilding liquidity came at a cost. Competition isn't dying down either, with a couple of credit unions floating 6% CD rates.

More than 1,000 users reported problems making payments on Tuesday before complaint volumes tapered around midday, according to DownDetector, a site that collects user outage reports. The internal network disruption comes on the heels of another Zelle outage JPMorgan Chase took responsibility for seven days ago.

The Pittsburgh-based regional is leaning heavily on ATMs as part of a de novo expansion strategy in the lucrative Washington metropolitan region.

After a quarter in which the institution helped the firm reap a record profit margin, the company followed rival Edward Jones in withdrawing its application.

The Federal Reserve is leading the push for broader, more standardized risk-capital rules, yet some of its board members, other regulators and industry groups are uncomfortable with the proposal.

The governing bodies of the National Association of Federally-Insured Credit Unions and the Credit Union National Association have unanimously approved a merger agreement. Members are expected to vote on the deal later this month.

Michigan State University Federal Credit Union and Nymbus teamed up to design a package of business banking tools with an eye toward credit unions, which historically have tread lightly into this space.

The decision to allow lenders to review only two credit reports for mortgage applicants will harm homebuyers with less than perfect credit.

The racially targeted mass shooting at a Buffalo, New York, grocery store in 2022 has renewed conversations about whether banks have a duty to help segregated, impoverished communities that were shaped in part by discriminatory lending practices. What do banks owe the Black community, and what influence could they have?

Median noninterest income at midsize banks rose 7.2% in the second quarter, exceeding expectations. Dallas-based Texas Capital stood out from the pack, reporting a large uptick in fee income thanks largely to its new investment banking platform.

The San Francisco company's student loan business suffered from the moratorium on federal borrowers' loans. But executives see a rebound ahead despite high interest rates dampening appetite for refinancing.

A pending deal between two sizable institutions in Minnesota could mark the end of a dealmaking drought, experts say.

Regulators noted the demise of Heartland Tri-State Bank involved an isolated problem. Industry observers cautioned against prediction of more failures to follow, saying second-quarter earnings show community banks generally remain in sound financial health.

The Federal Reserve said that banks reported tighter standards and continued weak demand for loans in the second quarter, extending a trend that began before recent stresses in the banking sector emerged.

A federal judge has temporarily stopped the Consumer Financial Protection Bureau from implementing its small-business data collection rule until after the Supreme Court rules next year on whether the bureau's funding is constitutional.

Gateway First Bank, a former nonbank home lender, rode the pandemic era's mortgage wave to No. 1 on American Banker's latest list of top-performing banks based on full-year 2022 data. Now it has to cope with the housing market slowdown.

The top five community banks have more than $670 million in combined home equity loan portfolios as of March 31, 2023.