Tennessee Bankers

This Week Newsletter

September 06, 2016 - Issue No. 1636

FDIC Insurance Fund Reaches Critical Milestone, Community Banks May See Lower Assessments

The FDIC's deposit insurance fund has grown to 1.17 percent of insured deposits in June, up from 1.13 percent in March, according to the Quarterly Banking Profile released last week. With this increase, the fund surpassed a target of 1.15 percent, triggering changes in the FDIC assessments for all banks that will take effect this quarter for premiums to be billed and paid in December.

Banks with less than $10 billion in assets will see their overall schedule decline by two basis points for banks paying the lowest premiums and up to five points for those at the top end of the assessment scale. In addition, a new formula for calculating risk-based assessment rates is now in effect.

The lower assessment schedule also applies to banks with more than $10 billion in assets. In addition, "surcharge assessments" to hold these 113 banks solely responsible for bringing the fund to 1.35 percent (as required under Dodd-Frank), commence this quarter. Read more.

Agencies Issue Fact Sheet on AML, Sanctions Enforcement

The Treasury Department and the federal banking agencies issued a fact sheet last week outlining expectations about anti-money laundering and sanctions enforcement. The document covered AML supervision and exam processes, enforcement actions by prudential regulators and the intersecting roles of the regulatory agencies and Treasury entities. Read more.

OCC: Banks Accountable for Vendors Under Servicemember Protections

Banks will be held accountable for products and services offered by third-party vendors that violate the Servicemembers Civil Relief Act, a key bank regulator said. The Office of the Comptroller of the Currency's Grovetta Gardineer said banks need to perform due diligence on and carefully monitor contractors to ensure they provide servicemembers and their families protections required by law.

Gardineer noted that beginning Oct. 3, the Military Lending Act will begin requiring financial institutions to determine the military status of all of their applicants for many forms of consumer credit. The MLA final rule offers a compliance safe harbor for military status determination for financial institutions that query the DMDC database or obtain military status information from one of the three national credit reporting agencies.      

The Defense Department last week issued an interpretative rule providing answers to certain compliance questions regarding the July 2015 Military Lending Act final rule. The interpretative rule offers guidance on several topics, including consumer-scheduled payments and providing generic oral disclosure of covered borrowers' payment obligations.  

Yellen: Anticipation for Gradual Increases in Fed Funds Rate 'Has Strengthened'

Federal Reserve Chairman Janet Yellen on Aug. 26 said that she anticipates gradual increases in the federal funds rate over the next few years as the U.S. economy continues to expand. She added that the Federal Open Market Committee expects to see continued moderate growth in real GDP, additional strengthening in the labor market, and inflation rising to 2 percent over that time frame. Yellen cautioned, however, that any decision to raise interest rates would be dependent on the degree to which incoming data continues to confirm the FOMC's outlook. 

The Southeastern Institute for IRA Training

There are so many pieces to building the IRA foundation of knowledge that it takes a lot of nuts and bolts and brain-power to hold it together. Just when you finally grasp it, they change the rules again! While it may take years to feel confident to answer almost any question thrown your way, The Southeastern Institute for IRA Training will raise your comfort level if you are a rookie and reinforce your knowledge if you have a higher level of experience.
You also will receive the 275-page 2016-2017 Sunwest Training Corp's IRA Training and Reference Manual. The manual is full of easy-to-follow IRA information and includes a variety of cheat sheets and quick reference tools to get you through your day-to-day tasks of working with your IRA customers. The program takes place Sept. 20 and 21 at Franklin Marriott Cool Springs.

Tailgate with TBA

It's tailgate time in Tennessee! Brought to you by the Young Bankers Division, all Tennessee bankers and football fans are invited to join TBA for two tailgates this fall. Hosted by SouthEast Bank in Circle Park, the UT tailgate will be September 24 when the Volunteers take on Florida. The annual Tennessee Titans tailgate will be October 16 before the Browns game, hosted by Baker Donelson. If you're attending either of these games, or will be in the area, come on by the TBA tailgates to say hello. For more information, contact Stacey Langford.

Welcome New Associate Member

TBA welcomes new Associate Member SDGblue, LLC in the category of Security Services. Please thank this company for their support of the Tennessee banking industry through membership and learn more about all of TBA's associate members in our online directory.

2016-2017 At-A-Glance Education Calendar Released

We understand that your planning for winter and spring professional development starts early, so TBA is pleased to release our 2016-2017 At-A-Glance live educational calendar so that you can start saving dates and planning ahead. The calendar runs through June 2017 and includes more than 65 live educational programs. The full Professional Development Directory that includes the listing of programs for all of 2017 along with short descriptions and pricing will be available in early October.

TBA On the Road

  • The inaugural TBA Women in Banking Conference welcomes 100 participants to Nashville on Thursday.  

See where TBA goes while "on the road" by following  @TNBankers.