Regulatory & Legal Affairs

Overview

Legal and Regulatory Advocacy
Following new laws and regulations

New laws and regulations are constantly being proposed for the banking industry, both in Washington, D.C. and Sacramento. As well-intended as some of these proposals are, many of them contain language that conflicts with current law or conflicts with current regulatory requirements. Decision-makers need to better understand how their proposals translate into the real-world workings of California’s financial institutions, which is where our legal and regulatory advocacy unit is intrinsically valuable.

Our legal and regulatory advocacy unit works to identify potential legal and regulatory conflicts, make those conflicts known and secure a reasonable solution for the industry. CBA’s legal and regulatory advocacy unit works closely with bank regulators and elected officials alike to ensure that the banking industry’s perspective is known, understood and considered in the decision-making process.

In addition to the work done on the legislative and regulatory fronts, CBA’s legal and regulatory advocacy unit also gives a voice to the banking industry in important legal matters affecting the banking industry. Among the many legal services CBA provides on behalf of the industry is the filing of amicus, or “friend of the court,” briefs on legal proceedings critical to the industry. Through the filing of these briefs, CBA is able to provide the industry’s perspective without signing on as a participant in a given case or lawsuit. Our members understand that we are providing end-to-end advocacy services through our legal and regulatory advocacy unit, affecting both policy decisions and key court decisions that affect our members’ ability to do business.

Press release

CPPA CPRA Regulations Comment Letter

On Tuesday, CBA submitted its comment letter to the California Privacy Protection Agency on the proposed rulemaking on regulations implementing the California Privacy Protection Act of 2020. Among other comments, CBA raised concerns in areas where the proposed regulations go beyond, or conflict with, the statute, such as the requirement that businesses honor universal opt-out preference signals.

Press release

Joint State Financial Services Associations Letter Opposing S.4674 & Expansion of Durbin Amendment Routing to Credit

CBA has joined a joint letter opposing the so-called “Credit Card Competition Act of 2022” (S. 4674) introduced by Senators Roger Marshall (KS) and Dick Durbin (IL). The legislation reduces the number of credit card issuers competing for consumers’ business, wrings out the competitive differences among card products, decimates card rewards programs, and puts the nation’s private-sector payments system under the micromanagement of the Federal Reserve Board.

Press release

CBA Submits Additional Comment Letter on Definition of a Depository Institution

CBA has previously provided comments on this matter and CBA strongly reiterates its position that subsidiaries, affiliates and entities otherwise related to depository institutions, which are engaged in the business of commercial lending under federal regulatory oversight should be exempted from application of the proposed regulations in the same manner that depository institutions are exempted. 

Specifically, CBA requests that a definition of “depository institution” should be added to the proposed regulations as follows:

Press release

CBA Submits Comment Letter on Definition of a Depository Institution

CBA has previously provided comments on this matter on January 22, 2019, and again on September 9, 2019. CBA strongly reiterates its position that subsidiaries, affiliates and entities otherwise related to depository institutions, which are engaged in the business of commercial lending under federal regulatory oversight should be exempted from application of the proposed regulations in the same manner that depository institutions are exempted. 

 

Press release

CBA Submits Comment Letter on Brokered Deposits

Our letter provides comments on the proposed revisions to the Brokered Deposits Restrictions regulation promulgated by the Federal Deposit Insurance Corporation (FDIC).

While we are generally supportive of the efforts to modernize these regulations, we do believe that some aspects of the proposal should be clarified to avoid ambiguity and unintended consequences.  

Click here to view our letter.

 

Press release

CBA Submits CRA Modernization Comment Letter

CBA submitted comments this week to The Office of the Comptroller of the Currency and the Federal Deposit Insurance Corporation on a proposed rule to modernize the Community Reinvestment Act. The proposed rule focuses on improvement in the areas of qualifying activities, assessment areas, performance standards, and data collection.

We also have worked with the American Bankers Association (ABA) on a joint comment letter regarding the proposed regulations.  

Press release

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

Press release

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.

Press release

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.

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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.

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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.

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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.

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ACTION NEEDED! Community Reinvestment Act Reform and Modernization:  OCC Request for Public Comment

On August 28, 2018, the Office of the Comptroller of the Currency (OCC) issued an Advance Notice of Proposed Rulemaking (ANPR) concerning modernization of the Community Reinvestment Act (CRA). CRA modernization can become a reality, but achieving it requires the involvement of as many financial institutions as possible. The first step is to comment on the ANPR. The ANPR can be reviewed here