On July 13, when federal banking regulators issued proposed guidance governing financial institution monitoring of third-party service providers, one agency was notably absent: the National Credit Union Administration.
If President Biden’s Executive Order on competition is any indication, banker arguments that credit unions pose an unfair competitive threat may not be gaining traction in the White House.
The heads of the U.S. financial regulatory agencies met with President Biden on Monday. Except for one: National Credit Union Administration Chairman Todd Harper, who an agency spokesman said was not invited and did not attend.
President-elect Joe Biden on Tuesday appointed longtime credit union executive Bill Bynum and former Consumer Financial Protection Bureau Deputy Director Leandra English to his CFPB agency review team. The teams are designed to help ease the transition from Trump Administration agencies to Biden Administration agencies. The teams also include one that will examine the Federal Reserve, Banking and Securities Regulators. English is the team lead for the CFPB team. She served as deputy director of the CFPB under former Director Richard Cordray. Her appointment is likely a sign that Biden intends to re-invigorate the CFPB, which has tilted toward a
The Federal Reserve is now accepting applications for a pilot test program for its FedNow Service. Financial institutions, including credit unions, are among those eligible to apply, Fed officials said. Once it is implemented, the FedNow service will allow customers to send and receive payments at financial institutions instantly. Credit union trade groups have expressed their support for the program. The pilot program will include three phases: advisory, testing and closed-loop production. Institutions that are not members of the FedNow Community must first enroll by submitting a participant profile form. Organizations that are interested in participating must submit an application
A Federal Reserve U.S. Coin Task Force has developed a toolkit for financial institutions and retailers in an effort to push more coins into circulation.
In forming the task force earlier this year, Fed officials said that with many retail businesses where coins are used closed due to the coronavirus crisis, the normal coin circulation network has been disrupted. They said that there is not a shortage of coins, adding that more than $40 billion in coins are in circulation, but many of them are not being used.
Financial institutions are unlikely to face official enforcement actions if they commit small, isolated violations of the Bank Secrecy Act or Anti-Money Laundering rules, federal banking regulators, including the National Credit Union Administration, said last week.
The Federal Reserve’s FedNow payment system is expected to be launched in 2023 or 2024, even though many in the financial community have urged the agency to implement it sooner.
Once it is implemented, the Fed has said the service would allow customers to send and receive payments at financial institutions instantly.
Amid signs that federal pandemic assistance funds have not reached businesses that need them the most, Sen. Brian Schatz (D-Hawaii) this week introduced legislation creating a new $2 billion emergency fund for Community Development Financial Institutions.
The legislation, S. 4430, would automatically provide capital for CDFIs during a natural disaster or economic crisis. The legislation is cosponsored by nine Democrats and Independent Bernie Sanders of Vermont.
Presumptive Democratic presidential nominee Joe Biden said Tuesday that, if elected, he will push plans to use Community Development Financial Institutions to help close the racial wealth gap.