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FOMC Updates

FOMC Updates: Oct. 29-30, 2019 Last week, the Federal Open Market Committee (FOMC) met and approved the previously predicted rate cut, lowering the Fed Funds rate 25 basis points to 1.5% to 1.75%, the third cut of this year. However, officials predict rate cuts to pause the rest of 2019.  “We see the current stance of policy as likely to remain appropriate as long as incoming information about the economy remains broadly consistent with our outlook,” said Jerome Powell, Chair of the Federal Rese...

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Topics: Regulations, Interest Rates

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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: Regulations, FinTech

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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: Regulations, Deposit Reclassification, Federal Reserve Balance