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Applying the SCALE Method to Nebraska Banks
The Current Expected Credit Losses (CECL) accounting standard will be required for all banks as of January 2023. Institutions with less than $1 billion in assets can use the Scaled CECL Allowance for Losses Estimator to estimate lifetime losses.
Research from the University of Nebraska-Lincoln applied the SCALE method to Nebraska banks. The research was conducted by former NBA Ag Banking and Finance intern Jared Stauffer as part of his masters thesis. He can be reached at [email protected].
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Senators Introduce Digital Asset Regulation Bill
Sens. Kirsten Gillibrand (D-N.Y.) and Cynthia Lummis (R-Wyo.) recently introduced the Responsible Financial Innovation Act to create a regulatory framework for digital assets. The bill would give the Commodity Futures Trading Commission regulatory authority over digital asset spot markets. It would also set requirements for payment stablecoin issuers, including 100% reserve and disclosure requirements. However, payment stablecoin issuers would not be required to become depository issuers.
According to the American Bankers Association (ABA) the legislation “would effectively create a parallel supervisory and regulatory structure that holds non-bank firms to lesser standards than banks, and therefore offers their customers and our financial system fewer protections.”
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FinCEN Seeks Feedback on No-Action Letters
As part of its implementation of the Anti-Money Laundering Act of 2020, the Financial Crimes Enforcement Network (FinCEN) is seeking public feedback on whether FinCEN should issue no-action letters and, if so, how the process should work.
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Bank Economists Forecast Soft Landing
The ABA Economic Advisory Committee expects economic growth to slow through 2023 before rising in 2024. The committee projects a 40% chance of recession next year.
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