Banking

At the two big banks, proposed phaseouts of lending for new fossil-fuel exploration drew less shareholder support on Tuesday than they did a year ago. The results were a blow to activists who want big banks to take stronger action to combat climate change.

Rep. Roger Williams, chairman of the House Small Business Committee, says Small Business Administration is considering allowing borrowers to self-certify eligibility for loans, a step some believe could lead to more fraud. The agency declined to say whether that is one of the changes it's considering.

CEO Rajinder Singh said battered competitors are "throwing off" both talent and customers, creating a chance for the Miami Lakes, Florida, bank to pick up new business.

First Republic Bank is exploring divesting $50 billion to $100 billion of long-dated securities and mortgages as part of a broader rescue plan, according to people with knowledge of the matter.

Joe Evica, who has been employed with the Wisconsin-based insurance firm since March 2019, was terminated on April 4 for allegedly violating company policies.

Federal officials should have protected both banks' uninsured depositors by following the law's carefully designed framework for dealing with failures of systemically important banks.

Banks with more than $100 billion of assets expect tougher regulations in the wake of last month's bank failures. They say that any changes to capital and liquidity standards should happen gradually in order to avoid spooking investors.

The combination of VyStar and 121 Financial Credit Union — both based in Jacksonville, Florida — would have more than $14 billion of assets.

The San Francisco bank, on shaky ground after two regional peers failed last month, said that customers pulled more than 40% of their deposits last quarter. It's been forced to turn to more expensive sources of funding, which analysts said will squeeze its profitability.

The Dallas-based company is intentionally shedding certain deposit relationships that don't align with its new business model. Total quarterly deposits fell 12.6% year over year, but they rose 1% after excluding the relationships targeted for reduction, according to the bank.

Central bank will rely on reserves to kick-start its proposed bullion-backed digital currency.

Main Street companies, particularly those owned by women and minorities, depend on the flexibility of community and regional banks for their survival.

The Kansas-based buyer is pursuing deals to build out its small-business lending across several states.

The top five banks and thrifts have combined total assets of more than $12 trillion as of December 31, 2022.

The Birmingham, Alabama, bank said that its deposits fell by $3.3 billion last quarter, and it projected a decrease of up to $2 billion between April and June. Executives assured investors that sizable liquidity sources are available.

Texas National Bank in Mercedes, Texas, is testing how alternative data can improve the speed and accuracy with which it lends to its small-business customers.

Bank of America hits 100% recycled-plastic card goal for Earth Day, First U.S. Community Credit Union names new CEO, Santander partners with DailyPay, and more in this week's banking news roundup.

A study published after last month's crisis finds that banks can guard against rate-driven deposit outflows by keeping more liquid funds available. It also concludes that financial institutions with higher rates of uninsured deposits are more likely to face bank runs.

The Green Bay bank has seen stable performance since its recent strategy overhaul.

Elevated interest rates, economic uncertainty and financial sector fragility exposed by recent bank failures threaten to stunt lending activity.