Deposits

A New York state bill would reduce the barrier for minority-bank and community-bank participation in the state's long-standing Banking Development District program.

Senate Banking Committee Chair Tim Scott, R-S.C., told reporters that community banking didn't fit into the housing package moving forward in the upper chamber, but that he's in discussions with House leaders and the White House to move a separate financial services package.

Lenders with between $10 billion and $100 billion of assets grew their core deposits by more than 8% last year, or more than double the industry-wide average. Merger activity was largely responsible for the outsized growth.

Bank-favored provisions that were included into the House's version of a bipartisan housing bill threaten to derail Senate passage, but Senate Banking Committee moderates seem skeptical of the combination.

Banks are unlikely to get the language of the GENIUS Act amended to better defend deposits. But Noelle Acheson explains how that doesn't mean they won't get what they want.

GBank will serve as the bank partner for a cashless slot machine betting app that is looking to expand nationwide after getting a key regulatory approval in Nevada.

Treasury Under Secretary for Domestic Finance Jonathan McKernan said he is concerned that the traditional bank funding model of taking in low-cost deposits and making more lucrative loans could be set for a shakeup as fintech challengers get more competitive.

Comerica Bank in Dallas has been around since before the Civil War. But the banking crisis of 2023 tamped down on its access to low-cost funding, and the problem persisted until it finally decided to sell itself.

Many banks lowered the interest rates they pay on certificates of deposits and high-yield savings accounts in September, capitalizing on the Fed's 25-basis-point cut.

The acquisition would allow Fiserv network banks to insure larger deposits and could bolster the company's new foray into stablecoins.

In its recently passed bill, Congress prohibited stablecoin issuers from offering interest, but left the door open to "rewards" from exchanges. That provision could drive adoption of stablecoins and compete for deposits, but experts say the technology would have a long way to go.

Execs say other banks are still more of a rival for deposits than the digital currency.

Opposition is building against a bipartisan bill that would raise deposit insurance for business accounts, with increased deposit insurance premiums a chief concern.

A bipartisan amendment from Sens. Bill Hagerty, R-Tenn., and Angela Alsobrooks, D-Md., would expand deposit insurance for business accounts, but the industry is split on who should bear higher FDIC premium costs.

More nonbank digital asset firms are applying for national trust charters, a development that many banking organizations oppose due to what they say is inadequate oversight, lack of congressional intent and no FDIC backstop.

Amid waning federal support for community development financial institutions and minority depository institutions, a program launched by two banking trade groups is beginning to generate a steady stream of deposits for mission-focused lenders.