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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

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What is the Impact of Fintech Charters on Community Banks and Credit Unions?

On July 31, 2018 the Office of the Comptroller of the Currency (OCC) announced the approval of the national fintech charter. This announcement followed the Treasury Department’s report about how non-banks, like fintechs, should be regulated. The OCC’s decision is based on government efforts to promote economic growth, and support innovation that improves financial services to customers, businesses and communities.

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Topics: FinTech, Regulations

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Working Together - Regulation D and Deposit Reclassification

Deposit Reclassification, also known as a retail sweep program, allows financial institutions to reduce their Federal Reserve Bank reserve requirement. The Federal Reserve’s 12 CFR 204 Regulation D sets out uniform requirements for all depository institutions’ reserve balances - either as vault cash or as funds held with their local Federal Reserve Bank. Retail sweep programs reduce reserve requirements, which Regulation D sets out for financial institutions to observe. How do these two opposing...

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Topics: Deposit Reclassification, Regulations, Federal Reserve Balance