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Kelly MacConnell

Kelly MacConnell
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FOMC Updates

FOMC Updates: Jan. 29-30, 2019 Last week, the Federal Reserve met for the first time in 2019. As predicted from their meeting back in December, rates remained unchanged and continue to hold at 2.25-2.5 percent after a unanimous vote from the central bank. In their statement, the central bank reports that more rate hikes are to be expected, but the committee will proceed with a more cautious approach moving forward as they closely monitor economic conditions. “In light of global economic and fina...

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Topics: Interest Rates, Regulations

money in bar chart

Top Five Features to Look for in Branch Cash Management Software

After the third Fed funds rate increase of the year, financial institutions should consider focusing on branch cash management initiatives that identify and minimize non-interest earning assets through optimizing cash inventory to ultimately reinvest it into lending and other investments. One of the most cost effective and efficient ways for a bank or credit union to reduce excess cash is by using a software solution. However, many institutions don’t know where to start when looking for a branch...

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Topics: Cash Management

Federal Reserve Symbol

The History of Deposit Reclassification

Deposit Reclassification has existed since the early 90s, but most people don't know the story behind the process that has helped financial institutions reclaim billions of illiquid assets to reinvest in their local markets. Here is the story behind this vital solution. During his time at KPMG as a National Partner in charge of Revenue Enhancement Consulting Services, Nicholas Ceto, Jr. worked with nearly every major bank in the country. Unfortunately, after more than 18 years at KPMG, Ceto reti...

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Topics: Deposit Reclassification

Cash Drawer wit h denominations

Four Factors to Consider when Assessing Branch Cash Inventory Management

Inventory management can sound intimidating, however, having a good inventory management system in place is vital to the success of any business. When it comes to banks and credit unions, there are many variables that come into play when understanding cash inventory. How much needs to be ordered? How much cash is in transit? Do you have the correct denominations to satisfy customer requests? Here are four top inventory management factors you should consider for your financial institution’s cash:

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Fed Reserve logo on bill

Don’t Call It a Rewrite – The Ease of Volcker Rule is for Efficiency Sakes

On May 30, 2018, the Federal Reserve proposed rules to simplify compliance requirements relating to the "Volcker rule," which was established after the global financial crisis of 2008, and prevented taxpayer-insured banks from engaging in risky proprietary trading, and from owning or controlling hedge funds or private equity funds. The Fed’s proposed changes do not go against the rule’s core principles of prohibiting banking entities from making risky financial bets, but aim to ease the nightmar...

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Topics: In the News, Federal Reserve

Stress Test and Money

What is the Fed Doing to Ease the Stress of Stress Testing?

On April 10, 2018, the Federal Reserve Board sought comment on a proposal to simplify capital rules for banks while preserving strong capital levels to maintain their ability to lend under stressful conditions. The proposal would reduce the amount of Tier-1 capital that large, medium and small-sized banks would need to hold as a buffer against future economic shocks – based on size, complexity, and systemic footprint of each firm. This should help small and mid-sized financial institutions and n...

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Topics: Financial stress testing

Dodd_Frank sign

Are We There Yet?? A Dodd-Frank Deregulation Update

Update: Are we there yet?  On March 14, 2018, the Senate passed a bipartisan measure to exempt dozens of small community and regional banks and credit unions from the Dodd-Frank Wall Street reform law enacted in 2010. The bill, which recognizes that smaller financial institutions are disproportionately burdened by regulatory demands, now moves to the House of Representatives, where it faces a tougher approval battle because conservatives believe the Senate version doesn’t go far enough in disman...

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Topics: Dodd Frank

balance scale apples and oranges

Deposit Reclassification vs. other Retail Sweep Programs

 A Comparison of Deposit Reclassification and the core providers’ Retail Sweep Programs Deposit Reclassification, commonly referred to as retail sweep programs, help banks and credit unions recover their Federal Reserve balances due to reserve requirements and quickly improve profitability. These programs reduce reserve requirements to the point where in most cases, they can be met with vault cash alone, without parking funds at the Fed. Financial Institutions can then invest these freed-up fund...

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Topics: Deposit Reclassification, Retail Sweep Program

money mistakes-eraser

3 Branch Cash Management Mistakes That You Don’t Know You’re Making

According to the Federal Reserve Bank of San Francisco, cash is still the most frequently used retail payment instrument; used in nearly one-third of all transactions, even when other options are available. Data also shows that 89 percent of all Americans carry cash to some extent, and nearly two-thirds hold cash every day. As a result, consumers are dependent on banks and credit unions to get the cash they need for everyday spending. However, branches and ATMs do not always meet their demand fo...

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Topics: Cash Management, Cash Usage

Jerome Powell for Federal Reserve Chair – What Does That Mean For Banking?

On 11/2/2017, President Trump nominated Jerome Powell to be the next Chair of the Board of Governors of the Federal Reserve System, replacing incumbent Janet Yellen. Powell is widely expected to sail through Senate confirmation hearings and commence his four-year term as Chair on 2/1/2018. He is currently a member of the Board of Governors. So let’s get to know the man and predict how his tenure might impact jobs, interest rates, GDP growth, the financial markets and the banking sector.

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Topics: Federal Reserve, In the News