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House committee launches pro-community bank bill

House Financial Services Committee Chairman French Hill (R-Ark.) and Subcommittee on Financial Institutions Chairman Andy Barr (R-Ky.) released a legislative package to support community banks—with ICBA joining the lawmakers to discuss the measure today.

Among its provisions, the Main Street Capital Access Act (H.R. 6955) includes ICBA-supported provisions to:

• Tailor regulations to the lower risk profile of community banks.
• Ease excessive capital requirements.
• Support the formation of new community banks.
• Ensure fair reviews of agency examinations.
• Raise thresholds for holding custodial and reciprocal deposits.
• Require the appointment of an FDIC board member with experience in small depository institutions.
• Modernize the Federal Reserve's discount window lending programs.
• Offer relief at the holding company level.
• Promote bank-fintech partnerships.

Source: ICBA

Stablecoin outreach critical ahead of markup this week

With the Senate Banking Committee negotiating digital asset market structure legislation ahead of a markup set for this week, ICBA President and CEO Rebeca Romero Rainey called on community bankers to reach out to their lawmakers  on a key provision to ensure the legislation bars all digital assets market participants from offering yield, interest, or rewards on payment stablecoins. 

ICBA last month released an analysis that says allowing crypto third parties to continue paying yield or interest on payment stablecoin holdings would reduce community bank lending by $850 billion due to a $1.3 trillion reduction in the industry’s deposits—underscoring the urgency of grassroots advocacy.     

Community bankers can use a customizable message on ICBA’s Be Heard grassroots action center to tell their lawmakers to minimize risks to the banking system and local economies by extending the prohibition to crypto exchanges and other third parties.

Source: ICBA

ICBA opposes credit card rate cap at 10%

ICBA and other groups expressed opposition to the call for a temporary 10% cap on credit card interest rates.

In a social media post, the president said he is calling for the one-year cap to take effect Tuesday, Jan. 20. Whether he has the authority to cap interest rates without an act of Congress is unclear.

In a joint statement ICBA and other groups said that while they share the goal of expanding access to affordable credit, rate caps would reduce credit availability, harming the U.S. families and small-business owners the policy is intended to help.

ICBA has consistently opposed proposals to impose credit card rate caps, including last year’s successful opposition to an amendment introduced by Sen. Josh Hawley (R-Mo.) to impose a 10% all-in annual percentage rate cap for credit cards.

Source: ICBA





An article from PCA Technology Solutions

Why You Should Review
Your Cyber Insurance Now

“If there’s one thing every business owner and IT leader has learned over the past few years, it’s this: cyber threats don’t wait for anyone. They don’t pause when the economy shifts, when teams are short-staffed, or when your business is caught up in a busy season. And the truth is, cybercriminals today are moving faster, becoming smarter, and targeting organizations of every size, from small local shops to multi-site enterprises.” 

In this article from ACB Associate Member PCA Technology Solutions, David Witt, Client Solutions Manager, discusses how: The Cyber Threat Landscape Has Changed Faster Than Most Businesses Realize | Insurance Companies Are Changing the Rules... Quickly | Your Business Has Probably Changed, Your Coverage Should Too | Cybersecurity Regulations Are Getting Stricter | Cyber Insurance Isn’t Just About Money, It’s About Survival | Threats are Evolving Too Quickly to Wait Until Renewal | What to Look for When Reviewing Your Cyber Insurance Policy | The Cost of Delay Is Higher Than Most Expect | Now Is the Right Moment to Review Your Cyber Insurance...

Click here to learn more.

Source: PCA Technology Solutions

Fed Chair investigation

US prosecutors are investigating Federal Reserve Chair Jerome Powell over his testimony last summer about the central bank's building renovation project, The Wall Street Journal  reported, citing government officials with knowledge of the matter. The Justice Department handed the Fed grand jury subpoenas on Friday, threatening a potential criminal indictment, according to the report. Powell called the probe a pretext for the President’s bid to pressure the Fed to lower interest rates and end the central bank's independence, the report said.

Source: S&P Global Market Intelligence

CFPB amends Reg C and Z exemption thresholds


The Consumer Financial Protection Bureau issued a final rule amending the requirements of the Regulation C (Home Mortgage Disclosure) to reflect the asset-size exemption threshold for banks based on the annual percentage change in the average of the Consumer Price Index for Urban Wage Earners and Clerical Workers.

The CFPB said the exemption threshold is increasing to $59 million from $58 million based on the 2.5% increase in the average of the CPI-W. Banks with assets of $59 million or less as of Dec. 31, 2025, are exempt from collecting data in 2026.



The Consumer Financial Protection Bureau amended Regulation Z (Truth in Lending) to reflect changes in the asset-size thresholds for certain creditors to qualify for an exemption to the requirement to establish an escrow account for a higher-priced mortgage loan.

The CFPB said for certain first-lien higher-priced mortgage loans, the exemption threshold rose to $2.785 billion from $2.717 billion. Therefore, creditors with assets of less than $2.785 billion as of Dec. 31, 2025, are exempt from establishing escrow accounts for higher-priced mortgage loans in 2026.

Source: CFPB

Fed bank rating 
re-assignments

Federal Reserve Board Vice Chair for Supervision Michelle Bowman announced that the agency is reviewing how it assigns certain bank ratings, continuing efforts to focus supervision on material risks to lenders, according to prepared remarks for a Jan. 7 seminar. "The supervisory operating principles emphasize that examination findings and reports must focus on material financial risk. We are currently implementing several initiatives to reflect this approach including: revisiting the standard for issuing MRAs and MRIAs; ensuring that CAMELS ratings reflect a bank's risk profile and financial condition," Bowman said.


Source: Federal Reserve Board

Presential bank charter

Banking experts are raising concerns of conflict of interest in the recent application  for a national trust charter of World Liberty Trust, an affiliate of the President's crypto firm, American Banker reported. "The comptroller is subject to oversight by the president, and if the president wants to tell the comptroller to approve the charter application, he can do that — and if the comptroller says no, because there are issues with the application, the president can fire the comptroller," the report quoted former Federal Deposit Insurance Corp official Todd Phillips as saying.

Source: S&P Global Market Intelligence

Fed resumes accepting penny deposits


Federal Reserve Financial Services (FRFS) today announced new actions to better support the circulation of pennies for commercial activity. Beginning on Jan. 14, the Federal Reserve will resume accepting pennies from banks and credit unions at commercial coin distribution locations providing services under arrangements with the Federal Reserve that were previously suspended.

While the Federal Reserve continues to support penny deposits, local inventory constraints had limited that activity at some locations. Our monitoring of the flow of penny deposits from financial institutions as these changes take effect will determine whether some subsequent expansion of ordering options for pennies is feasible, given that penny production has ended.

The Federal Reserve’s role for coin is limited to distribution to banks and credit unions on behalf of the U.S. Mint, which is the nation’s issuing authority for coins. The Federal Reserve does not provide coins directly to businesses or consumers.

Source: S&P Global Market Intelligence

Pathway for nonbank purchases of failed banks

The Federal Deposit Insurance Corp. moved forward with its efforts to create a clearer pathway for private equity firms and other nonbanks to bid on failed bank assets. In a  Financial Institution Letter, the FDIC gave information meant to "incorporate lessons learned from the 2023 bank failures" and facilitate interested nonbanks. Nonbanks currently are only allowed to bid on assets of failed banks and not whole banks because they cannot take on deposit liabilities.


Source: S&P Global Market Intelligence

ICBA encourages comments on ACRE tax exemption

US ICBA is urging agricultural lenders to submit comment letters by Tuesday, Jan. 20, on IRS guidance regarding the ACRE tax exemption for interest earned on ag real estate loans.

Recent legislation included the ACRE provision as an amendment to Section 139L of the Internal Revenue Code. The guidance is a precursor to the IRS issuance of a proposed rule.

Community bankers can comment on the guidance by addressing the points made in ICBA’s ACRE Act summary.

Source: ICBA

'40 Under 40' nominations now open

Independent Banker (IB) magazine opened nominations for its 2026 “40 Under 40: Community Bank Leaders” awards.

The awards recognize community banking’s brightest and most promising young professionals, with winners to be featured in the June/July issue of IB.

Candidates are judged on character, leadership, community involvement, and innovation.

Nomination surveys are due by Friday, Feb. 6. 


Source: Independent Banker