Law and regulation

Large banks are outpacing community banks in deposit gathering because new liquidity rules make deposits more valuable to the biggest banks, mobile banking has been a deposit magnet for the heavyweights, and regional and midsize players hold certain advantages over smaller rivals, too.

WASHINGTON — Financial authorities from the Group of Seven countries on Tuesday released cybersecurity recommendations for private and public entities operating in the financial sector.

Navy Federal Credit Union, the largest credit union in the country, agreed Tuesday to pay $28.5 million to settle regulatory allegations it engaged in illegal debt collection practices.

Fintech circles are abuzz about the possibilities for streamlining compliance work following IBM's deal to buy Promontory. Artificial intelligence software could help separate false positives from true violations, for example, or read and parse through lengthy regulations.

The new prepaid rules make it harder for bad actors to enter the industry while also being broad enough to apply to future digital products.

The single-director structure of the Consumer Financial Protection Bureau represents an unconstitutional concentration of executive power, a federal appeals court said Tuesday. But the court stopped short of disbanding the agency, instead giving the president more power to remove its leader.

WASHINGTON — Federal Reserve Board Vice Chairman Stanley Fischer said Friday that the Dodd-Frank Act has addressed the biggest issues with bank instability but the "shadow banking" sector industry still needs to be addressed.

The regulations added in the wake of the financial crisis have made the system safer, but it's time to pause on new rules and find ways to improve what's been put in place already, according to the top executives at some of the largest banks.

Federal Reserve Gov. Lael Brainard said in a speech Friday that distributed ledger technology — known as "blockchain" — has great potential for the payment system and important markets, but most of those applications are still years away from maturity.

WASHINGTON — The Basel Committee will move forward with its final regulatory capital rules by yearend despite threats from the European Union that its members may choose to ignore the standards out of fear that they might stifle growth.