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The next issue of Update will be published on Jan. 3.

We look forward to connecting with you in 2024!

The NBA has received reports from a number of members that the Federal Reserve (Fed) is requesting that the imposition of nonsufficient fund (NSF) fees on represented transactions cease immediately and that disclosures should be updated accordingly. A Fed representative has confirmed that the Fed is reaching out to member banks regarding this issue. A previously issued Fed Compliance Spotlight indicated that the imposition of NSF fees on represented items met the legal standard for "unfairness" under Section 5 of the Federal Trade Commission Act which relates to unfair or deceptive acts or practices. With the practice considered to be unfair, adequate disclosure of the practice appears to be of no consequence. Banks are encouraged to work with their vendors on solutions for identifying these transactions and to notify the Fed if a particular vendor is not able to identify representments.

Read the Compliance Spotlight

There's still time to submit your application for the 2026 NBA Leadership Class! Applications are due by Dec. 31. Participants in the two-year program gain a comprehensive understanding of the banking industry and develop the necessary skills to assume leadership roles at their bank. For details about the program, contact Ron Arrigo at the NBA at [email protected] or 402-474-1555.

Learn More and Apply

Legislative, Policy and Regulatory Updates

NBA, State Associations Urge Transparent FHLB Reform Process

In a letter to the Federal Housing Finance Agency, the NBA and 51 other state bankers associations emphasized the importance of an "open, transparent and inclusive" process for implementing the changes to the Federal Home Loan Bank (FHLB) System recommended in a recent report.

Read the Letter

FDIC Adopts New Sign and Advertising Requirements

Today, the FDIC Board of Directors approved a final rule that makes several changes to the regulations governing the use of the official FDIC sign and insured institutions' advertising statements. Among the changes, the final rule creates an FDIC official digital sign banks will be required to display near the bank's name on all websites, mobile apps and certain ATMs beginning in 2025. In addition, the final rule updates display requirements for the FDIC official sign in bank branches and other physical premises and clarifies misrepresentations of deposit insurance coverage.

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CFPB Releases Report on Consumer Experiences with Overdraft, NSF Fees

A Consumer Financial Protection Bureau (CFPB) report released yesterday indicated that 43% of consumers who were charged an overdraft fee were surprised by the fee. Among those who were frequently charged overdraft or nonsufficient fund (NSF) fees, 81% reported struggling to pay at least one bill in the past year. The bureau is expected to propose a rule to assess whether overdraft fees qualify as finance charges under Regulation Z, potentially subjecting them to Truth in Lending Act requirements.

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FDIC Issues Advisory on Managing Commercial Real Estate Risk

The Federal Deposit Insurance Corporation (FDIC) issued a new advisory to "reemphasize" the importance of key risk management practices related to commercial real estate concentrations.

Read the Advisory

Dec. 13 - 19

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Agricultural producers can sign up for the U.S. Department of Agriculture's (USDA) Agriculture Risk Coverage and Price Loss Coverage programs for the 2024 crop year. The election and enrollment period runs through March 15, 2024. These commodity crop safety net programs were extended as part of the one-year farm bill extension.

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