For Members
Legislative Sessions Underway in Washington, D.C. and Sacramento
by Kevin Gould, SVP/Director of Government Relations
At the federal level, Congress is in and we are seeing the re-introduction of several measures from the prior Congressional session that are impactful to the banking industry. One important factor that distinguishes this session compared to the prior is that Democrats have taken control of the Senate while maintaining a narrower margin in the House of Representatives. This could have implications on measures important to our industry.
California Advances COVID Relief to Struggling Californians
by Kevin Gould, SVP/Director of Government Relations
Since the Legislature’s return in January, the state has taken swift action to advance COVID-19 relief to struggling Californians. Economic assistance provided through the state’s efforts are designed to augment federal relief and extend support to individuals and small businesses that may not have received help in prior efforts.
CBA Responds to AB 1177, the California Public Banking Option Act
SACRAMENTO, Calif. – The California Bankers Association (CBA), issued the following statement in response to today’s press conference supporting AB 1177:
“Here we go again with the annual introduction of yet another bill seeking to introduce public banking to California. Despite voter rejection of the idea at the polls and public opinion polling indicating Californians’ opposition to the concept, advocates are nonetheless back pushing an idea with limited support.
California Banks & COVID Relief Efforts
Since the beginning of this pandemic, California’s banks have been outreaching and working proactively with customers to minimize the adverse financial effects of this crisis. Beyond the proactive efforts by individual banks and the work they have been doing to implement and deploy relief made available through state and federal programs, we continue to encourage customers experiencing hardships to reach out early and immediately to their financial institution given their unique personal financial situation.
The California Bankers Association Urges Support for Assembly Bill 3088
SACRAMENTO, Calif. – The California Bankers Association (CBA) released the following statement regarding Assembly Bill 3088:
“Our members have worked proactively with their customers since the beginning of this pandemic to provide important financial relief, including the forbearance of mortgage payments.
California Banks Remind Small Businesses that Funds are Still Available under the Paycheck Protection Program
SACRAMENTO, Calif. – The California Bankers Association released the following statement regarding the distribution and availability of funds available through the second round of the Small Business Administration’s Paycheck Protection Program (PPP):
Calif. Banks Met With Frustration as PPP 2.0 Launches
Steve Andrews, president and CEO of the Western Bankers Association, issued the following statement regarding today’s re-opening of the Small Business Administration’s Paycheck Protection Program:
“California banks worked throughout the weekend to prepare for the re-opening of the Small Business Administration’s (SBA) platform where Paycheck Protection Program loan applications must be submitted. Banks were hoping that the glitches that challenged the system during the first round of funding would be resolved.
Californians Without a Bank Account Encouraged to Explore Options in Advance of Stimulus Check Disbursement
SACRAMENTO, Calif. – Eligible Californians are expected to soon be receiving federal stimulus benefits, as part of the coronavirus economic relief package passed recently by Congress. Known as economic impact payments, it is estimated that this relief will bring $25 to $30 billion in funds to Californians who are struggling during these challenging times brought about by the COVID-19 pandemic.
California Banks Important Participants in Paycheck Protection Program
SACRAMENTO, Calif. – On Friday, the Paycheck Protection Program (PPP) launched, making available $350 billion in loans to help small businesses who are in need of economic relief during these challenging times.
California Banks Still Awaiting Guidance as Paycheck Protection Program Set to Launch
SACRAMENTO, Calif. – Since the beginning of this national pandemic, California’s banks have been outreaching and working proactively with customers to minimize the adverse financial effects of the crisis caused by the COVID-19 virus.
California Banks Encourage Outreach, Assisting Customers and Communities
SACRAMENTO, Calif. – The California Bankers Association released the following statement today regarding California’s banks ongoing assistance and outreach efforts during the COVID-19 crisis.
The California Bankers Association Encourages Homeowners to Reach Out Regarding Mortgage Hardships
SACRAMENTO, Calif. – The California Bankers
Association (CBA) released the following statement regarding
homeowners who might experience difficulty making mortgage
payments in light of the COVID-19 national emergency:
The California Bankers Association Announces California Industry Response to Coronavirus
SACRAMENTO, Calif. – The California Bankers Association (CBA) released the following statement regarding the California banking industry’s response to the coronavirus (COVID-19):
“California banks are actively monitoring the latest reports from the Center for Disease Control and taking numerous precautions to help ensure the safety of their customers and employees. Banks have well-developed business continuity plans and are prepared and ready to help their customers in this time of need.
Comments on Community Reinvestment Act Modernization Due April 8
The Office of the Comptroller of the Currency and Federal Deposit Insurance Corporation have proposed a rule on modernizing the Community Reinvestment Act. The proposed rule focuses on improvement in the areas of qualifying activities, assessment areas, performance standards, and data collection. The proposed rule can be reviewed here.
CFPB finalizes policy statement regarding “Abusive” Practices under UDAAP
Last Friday, CFPB issued a policy statement clarifying what constitutes “abusive” conduct for purposes of supervision and enforcement under Unfair Deceptive or Abusive Acts or Practices as compared to conduct that is unfair or deceptive. The policy is effective immediately. In determining whether an act or practice is “abusive” under UDAAP, the CFPB will consider whether the harm outweighs the benefits to consumers. In addition, the CFPB will generally avoid alleging that an act or practice that meets the unfairness or deceptive standard would also trigger a violatio
Ask Your Lawmaker to Co-Sponsor Important Legislation to Delay the Implementation of CECL
TAKE ACTION!
The Financial Accounting Standard Board’s new Current Expected Credit Loss standard poses significant operational challenges for the banking industry. CECL, which goes into effect January 2020 for some banks and later for others, will change the economics of lending and the unintended consequences are likely to result in changes to credit availability, product mix and cost of credit, particularly for consumers and small businesses. CECL will change the way your bank accounts for credit/loan losses.
New Report Finds Credit Unions Operate with ‘Scant Regard’ for Statutory Mission
On the eve of the 85th anniversary of the Federal Credit Union Act’s enactment, new research released today found that credit unions are falling short of their mission to serve households of “small means.” In fact, according to the research by respected analyst Karen Shaw Petrou, credit union members are disproportionately from middle- and upper-income households, and credit unions’ lack of “mission compliance” deepens U.S. economic inequality.
Resource Available at the Federal Reserve Bank of San Francisco to Assist with Fintech
Do you need help navigating the regulatory and supervisory system in support of your business model or involvement with financial technologies? SF Fed Navigate fintech analysts can assist.
Their goal is simple: to help facilitate responsible innovations while protecting consumers and ensuring the safety and soundness of banks. SF Fed Navigate fintech analysts are available to help answer questions from fintech companies and banks to build an understanding of the financial regulatory environment so innovative ideas thrive.
Reminder: Comments on Volcker Rule Exception for Qualifying Community Banks Due April 9
The financial regulatory agencies have issued a proposed rule to implement a section of S.2155 that grants an exemption from the Volcker rule for community banks that meet certain qualifications; for instance, banks that have $10 billion or less in total consolidated assets as well as trading assets and liabilities of 5 percent or less of total consolidated assets.
Federal Reserve Seeks Comments on Faster Payment System
The Federal Reserve is considering the creation of the first new payment system in more than 40 years and it is important for your bank to be heard. The Federal Reserve issued a Request for Comment on whether it should consider creating a new, faster settlement infrastructure to support real time payments in the United States. The Fed seeks comment on the benefits of it creating a new Real Time Gross Settlement System (RTGS) that would operate 24/7/365 enabling payments to clear and settle on a real time basis at any time.