Exams

The Federal Deposit Insurance Corp. handed community bankers a critical win on Thursday by rescinding a plan to treat reciprocal deposits as brokered deposits in the calculation of small-institution assessments.

Sen. Richard Shelby's bill changing how regulators gauge if a bank is "systemic" would refocus post-crisis policy on institutions that pose the greatest threat.

Officials who assess how well banks lend and invest in their communities seem out of sync with the experiences of Main Street.

For steering the Winston-Salem, N.C., company through an extended period of industry adversity, while providing a blueprint for large-scale M&A, King has been named American Banker's Banker of the Year for 2015.

The Consumer Financial Protection Bureau's Calvin Hagins warned mortgage lenders about the regulatory agency's four exam priorities for next year: loan-officer compensation, steps taken to ensure borrowers' ability to repay, compliance with "Know Before You Owe" consumer disclosures, and marketing services agreements.

Unlike the high-profile hacking incidents at big banks, smaller institutions have their own breed of threats such as cyberextortion that they must focus on in strengthening their security.

The New York Department of Financial Services' letter indicating potential cyber rules are prompting concerns that the state's plans could lead to more stringent measures throughout the industry.

While cybersecurity has already been part of bank exams for years, the Federal Deposit Insurance Corp. is highlighting it as a separate comment in order to ensure the issue is getting appropriate attention from bank executives and boards.

Banks undergoing annual Federal Reserve assessments should feel emboldened to challenge "matters requiring attention," and the Fed should hear them out.

The government's spotlight on servicing problems means companies should be taking steps now in the face of regulators' current enforcement authority and the potential of coming rules.