Deposit insurance

NCUA unveiled its methodology for how it would return a $736 million equity distribution from the share insurance fund, but a small group of CUs won't share in the largesse, and some still think the payment isn't big enough.

The company, which recently shared a three-year plan to bring in more lower-cost deposits and commercial loans, seems ready to play offense a year after the ouster of its CEO.

The full Senate will now consider the nomination of Jelena McWilliams to lead the FDIC, as well as nominees to sit on the Federal Reserve Board and the Financial Stability Oversight Council.

The House vote moved a sharp reduction in the corporate tax rate for banks and other businesses to within a few steps of becoming law.

With tax reform close to the finish line, bankers are still clear winners from the compromise worked out between House and Senate negotiators. But the bill includes some caveats that might give institutions pause.

For the first time in nearly nine years, an acquirer of a failed bank agreed to purchase only the institution’s insured deposits, making it likely that some customers will not recoup all of their uninsured funds.

American Share Insurance is moving into Big Sky Country, the 10th state to permit private share insurance.

The credit union will get money back sometime late next year as a result of the merger of the Temporary Corporate Credit Union Stabilization Fund and the National Credit Union Share Insurance Fund.

Jiko hopes to convince consumers that their funds will be safe in Treasury bills, while also generating higher returns than they would in traditional bank accounts.

The most immediate threat to the safeguards underpinning a well-functioning banking sector involves the failure of regulators to hold banks accountable.

It was mostly good news for banks in the Federal Deposit Insurance Corp.'s Quarterly Banking Profile, with higher earnings and net interest margins. But there were concerns as well, including slower loan and deposit growth.

The agency's Quarterly Banking Profile said banks earned $47.9 billion in the third quarter, helped by a 7.4% increase in net interest income from the previous year.

Bankers are generally happy with the House Republican tax plan released last week, but one provision of the proposed overhaul is likely to give them pause: a cutback in the deduction for deposit insurance premiums.

While increasing de novo activity is encouraging, the processes of chartering a bank and applying for deposit insurance are more onerous, lengthy and costly than they need to be.

The Federal Deposit Insurance Corp.'s No. 2 said deposit insurance helps prevent bank runs, but can also make banks more prone to taking on risk that can cost the public.

While credit unions will likely be pleased with a rebate of as much as $800 million, that amount could have been significantly more, had the regulator not voted to raise the normal operating level.

How most banks obtain deposits has changed radically over the past 30 years, thanks in part to innovation. It is time for regulators to rethink their notion of what constitutes a quality deposit portfolio.

Who doesn't want cash back, and sooner than planned? Credit unions -- if it means they'll receive some $800 million less.

The National Credit Union Administration must return all credit union monies that come from merging the insurance and stabilization funds, and halt its proposal to increase the normal operating level for the share insurance fund.

NCUA must return all credit union monies that come from merging the insurance and stabilization funds, and halt its proposal to increase the normal operating level for the share insurance fund.