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In a joint letter, the NBA, the American Bankers Association and 51 other state bankers associations urged the Federal Reserve to withdraw its proposal to reduce the debit card interchange cap under Regulation II. "The consequences for banks and their customers of an immediate 30% cut in debit interchange will be tangible, and potentially severe," the associations said.

The proposal would lower debit interchange fees to 14.4 cents plus an additional 0.04% of the transaction amount while increasing the fraud-prevention adjustment to 1.3 cents. Currently, the interchange fee stands at 21 cents, plus an additional 0.05% of the transaction amount and a 1-cent fraud adjustment. The proposed rule also introduces a provision to adjust fees every other year, based on data from a biennial survey of large debit card issuers, with the changes set to take effect on June 30, 2025.

The associations argued that the proposed rule is not mandated by the Dodd-Frank Act and emphasized the need for a study of both the proposal's effects and the impacts of several new final and pending regulations.

Read the Letter

As economic risks and exposures become increasingly complex, safeguarding your bank from potential losses linked to the mortgage portfolio has also become more important. Given the diverse range of potential losses that could impact mortgages and the various exposures involved in loan origination and servicing, there is a growing need for a versatile and comprehensive insurance product that allows for customization. Learn more considerations about mortgageholders coverage here.

For a comprehensive review of your bank's insurance coverage, contact Mitch Florea at NBISCO at [email protected] or 402-904-7014.

Legislative, Policy and Regulatory Updates

FinCEN Issues Guide on Accessing Beneficial Ownership Information

The Financial Crimes Enforcement Network (FinCEN) released a guide for small entities, including small financial institutions, with authorization to access Beneficial Ownership Information (BOI). The guide covers the confidentiality of BOI, emphasizing the need for protection, and specifies that disclosure is limited to authorized federal agencies, governments and financial institutions. It provides a summary of the rule's requirements relevant to small financial institutions accessing BOI.

Access the Guide

New Quarterly CRE Index Shows Further Decline in Tenth District Activity

The Federal Reserve Bank of Kansas City released the first quarterly Commercial Real Estate Index last week. During the final quarter of 2023, the index indicated a continued decrease in commercial real estate activity within the Tenth District, falling even further below historical averages. The new index incorporates a wide range of economic activities and financial factors across various commercial property categories, including retail properties, hotels, office buildings, multifamily housing and industrial space.

Learn More

CFPB Report on Credit Card Interest Rates

A Consumer Financial Protection Bureau (CFPB) report on its Terms of Credit Card Plans survey said that during the first half of 2023, small banks and credit unions offered lower interest rates compared to the 25 largest credit card companies across all credit score tiers. The data on general-purpose credit cards was collected from the top 25 credit card issuers in the United States and a sample of products from small and medium-sized banks and credit unions nationwide.

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Bank On Your Future

Talent and Workforce Development

Hosting an intern is an opportunity to invest in both your bank's success and the future banking workforce. The InternNE grant program provides grants of up to $7,500 to cover expenses related to internships, including tuition reimbursement, internship housing, recruitment expenses or administrative costs.

Learn More about InternNE

Access Internship Resources

FDIC Directors College Registration Open

The NBA has partnered with the Federal Deposit Insurance Corporation (FDIC) and the Nebraska Independent Community Bankers for the 2024 Directors College on June 11 in Lincoln. The program is designed for bank management teams, directors, significant shareholders, senior officers, new directors, advisory directors and compliance officers. Registrations are due by June 4.

Learn More and Register

Feb. 14 - 20

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