Capitol Hill Examines Rulemaking as Nonbanks Gain Ground
By PYMNTS.com
A Capitol Hill hearing Tuesday (Dec. 2nd) on prudential oversight made clear one problem looms over bank regulation: rulebooks designed for a different era.
Lawmakers from the House Financial Services Oversight Committee heard from senior officials from the Office of the Comptroller of the Currency, Federal Reserve, FDIC and National Credit Union Administration describe a regulated banking system under competitive pressure from nonbanks, FinTech companies and stablecoin issuers, and a supervisory framework that needs rapid modernization to keep up…
Related Reading: NCUA Chief Cites Deregulation, Downsizing in Outlook for Credit Union Regulator
Read MoreRegulatory Patchwork Vexes BNPL
By Patrick Cooley, Payments Dive
In the absence of federal regulation, the pay later industry is falling under the purview of state laws that were not intended for buy now, pay later transactions.
Federal regulators have receded from oversight of the buy now, pay later industry, leaving in their wake a patchwork of sometimes contradictory state laws. The pullback by the CFPB, which President Trump and administration officials have vowed to dismantle, has created a trail of confusion. Now, state regulators are taking it upon themselves to consider overseeing BNPL players, with two passing their own laws…
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The U.S. Is Deregulating Banks. Will The Rest of the World Follow?
By Martin Arnold, the Financial Times
New rules will boost lending and profits and entrench American dominance. But critics say they could lead to another crash.
A picture of the Farmers & Drovers Bank has pride of place on the shelf next to Michelle Bowman’s desk at the US Federal Reserve in Washington — a prominent reminder of her family ties to one of the oldest lenders in Kansas. Bowman’s great-great-grandfather was the first president of the 143-year-old bank her family still owns in the rural Midwest and she spent seven years as its vice-president before joining the Fed’s board in 2018…
Read MoreBank Regulators Seek Feedback on Proposal to Make Changes to Community Bank Leverage Ratio
By Dave Kovaleski, Financial Regulation News
Federal bank regulatory agencies are seeking public feedback on a proposal to implement changes to the community bank leverage ratio (CBLR) framework.
By incorporating these changes, the revisions would reduce regulatory burden and provide community banks with more flexibility and optionality in their capital management approach. The tailored modifications seek to focus attention on the unique needs of community banks in today’s financial landscape…
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