“Know Your Customer” Requirements 

In a joint letter, state attorneys general from across the nation – including NC Attorney General Jeff Jackson – said they support an FCC proposal to strengthen “know your customer” obligations for voice service providers that originate calls, arguing that stronger requirements will help fight fraud and scams. They pointed to the precedent of statutes and rules enacted in the financial sector to address money laundering. 

Acting CFPB Director

Mark Paoletta is now serving as the acting director of the CFPB after Russell Vought’s term expired on August 1. President Trump has nominated Brian Johnson to lead the bureau, but the Senate has not confirmed the nomination. Paoletta was the CFPB’s deputy director and under the Federal Vacancies Reform Act, a senior official may serve as acting director until a full-time agency head is confirmed by the Senate.

Build Skills Across Your Bank With Upcoming Professional Development

From fraud prevention and cyber defense to customer service, compliance, lending, AI and executive leadership, the NCBA’s upcoming professional development calendar offers practical learning opportunities for bankers at every level. Explore the programs below and find the right opportunities for you and your team.

August

• August 18–19 | 2026 Fraud Academy
  Audience: In Person | Fraud, operations, compliance, risk management, security and retail banking professionals
• August 20–October 15 | Cyber Defense Academy: From Attack to Response
  Audience: Hybrid | Information security, IT, cybersecurity, risk management and technology professionals

September

• September 10–11 | 2026 Emerging Leaders Conference
  Audience: In Person | Emerging banking professionals and future bank leaders
• September 17 | The Exceptional Banker Workshops – Proactive Customer Service
  Audience: Virtual | Retail bankers, branch staff, customer-facing employees, supervisors and managers
• September 29–30 | ACH Fundamentals Boot Camp
  Audience: In Person | ACH professionals, payments specialists, treasury management professionals and operations staff

October

• October 1 | The Exceptional Banker Workshops – Fix It Fast, Fix It Right
  Audience: Virtual | Retail bankers, branch staff, customer service representatives, supervisors and managers
• October 19–20 | 2026 Fall Compliance Update With Patti Joyner
  Audience: In Person | Compliance, BSA/AML, audit, risk management, operations and bank leadership professionals
• October 22 | Appraisal & Evaluation Compliance Seminar
  Audience: In Person | Appraisers, appraisal review staff, compliance officers, credit administrators, lending managers and loan officers
• Beginning October 22 | Understanding Bank Performance
  Audience: Virtual | Bank executives, CFOs, finance professionals, directors, branch managers and emerging leaders
• October 26–29 | Bank Trainers Conference & Expo 2026
  Audience: In Person | Bank trainers, learning and development professionals, HR professionals and organizational development staff
• October 26–30 | 2026 Carolinas & Virginias RMA Commercial Lending School
  Audience: In Person | Commercial lenders, credit analysts, relationship managers and commercial banking professionals

November

• Beginning November 3 | Banking AI Accelerator – Winter Series
  Audience: Virtual | Bank executives, innovation leaders, technology professionals, operations leaders and bankers exploring practical AI applications
• November 4–6 | 2026 Management Forum
  Audience: In Person | Bank CEOs, presidents, executive management, senior leaders, directors and department heads
• November 10 | Creating, Implementing, and Maintaining a Compliant Employee Handbook
  Audience: Virtual | HR professionals, compliance officers, executive management and supervisors responsible for personnel policies

Peoples Bancorp Celebrates 40 Years on Nasdaq

Peoples Bank President and CEO Bill Cable joined Nasdaq’s Closing Bell Ceremony this week to celebrate Peoples Bancorp’s 40th anniversary as a Nasdaq-listed company.

The milestone recognizes four decades of growth and service to the bank’s customers, employees, communities and shareholders. Peoples Bank is headquartered in Newton and serves communities throughout North Carolina.

Congress Status:
Currently In Recess

The House is in recess until August 31.

The Senate is in recess until September 14.

No Vote (Yet) on Clarity Act 

The Senate adjourned without holding a final vote on the Clarity Act (H.R. 3633), meaning that further action on the bill is delayed until at least September. From a banking perspective, our priority issue with the Clarity Act is to close a loophole that allows crypto exchanges and third party-party intermediaries to offer activity-based “rewards” on stablecoins and thereby avoid the prohibition on stablecoin interest and yield.

Senators from both parties have raised concerns about the bill’s potential effects on local lending if the loophole isn’t closed. A number of prominent Democratic Senators have also been seeking language in the bill to prevent federal officials from profiting from businesses engaged in digital currencies. 

FHA Seeks Feedback on Reinstatement Advance Payment Demonstration

The FHA has released a draft mortgagee letter proposing a Reinstatement Advance Payment (RAP) Demonstration that would provide a voluntary alternative method for securing partial claim and payment supplement debt in FHA-insured Title II single family forward mortgage programs.

Under the RAP demonstration, a mortgagee that executes a RAP repayment agreement with a borrower would make a servicing advance on the borrower’s behalf to cover delinquent principal, interest, other approved arrearages, and any applicable principal reduction, with the advance secured by the FHA-insured first mortgage as a non-interest-bearing balance rather than through a separate partial claim promissory note and subordinate mortgage.

Status of the 2026 Farm Bill

Before adjourning for the August recess, the Senate Agriculture Committee considered Chairman John Boozman's (R-AR) revised draft of the Agricultural Act of 2026 (Farm Bill), a multi-year reauthorization of USDA programs supporting farmers, ranchers, and rural communities.

The measure failed to advance after Democrats objected to the absence of a proposed two-year delay in forthcoming changes to the Supplemental Nutrition Assistance Program (SNAP). Chairman Boozman indicated the committee will revisit the legislation when Congress returns in September.

While most provisions of the Farm Bill remain relatively noncontroversial, Section 5103 has begun attracting increased attention. Although titled "Support for Rural Water Systems," the provision would substantially expand Farm Credit System lending authority by permitting Farm Credit Banks to provide tax-exempt financing for a broad range of projects, including solar, wind, and biomass energy developments, as well as landfills, waste-processing facilities, and recycling operations.

Critics argue the provision would further extend Farm Credit's reach beyond its traditional agricultural mission and create additional competition with taxpaying community banks.

Crews Confirmed to NCUA Board 

The Senate has confirmed John Crews as a member of the NCUA board. In his new position, Crews will likely lead the credit union regulator. Crews had been serving as deputy assistant secretary for financial institutions policy at the Treasury Department. The NCUA is chaired by Kyle Hauptman, but he intends to step down to become a member of the PCAOB.

This would leave Crews as the only member of the NCUA board, which typically has three members. Crews’ term expires in 2031.

Discount Window Modernization 

The Federal Reserve is updating its Borrower in Custody (BIC) program as part of an ongoing effort to modernize discount window operations. Through the BIC program, eligible institutions may pledge a wide variety of loan types to maximize liquidity while maintaining possession of the collateral.

FDIC Updates Process for Deposit Insurance Applications 

The FDIC has announced a new, two-phase process for deposit insurance applications meant to speed up agency reviews and encourage de novo bank formation. Under the approach, the FDIC will provide applicants that satisfy the relevant requirements:

1. a contingent authorization within 120 days of receiving an FDI application; and
2. an approval within the subsequent 12 months, following the receipt of additional application information and completion of the organizational phase.

When the applicant provides notification that the institution is ready to open, the FDIC would then affirm that all pre-opening conditions have been met.

FHLBank Atlanta to Host CEO Town Hall in Charlotte

NCBA Affiliate Partner Federal Home Loan Bank of Atlanta invites members to an in-person CEO Town Hall on Wednesday, Oct. 28, at the Kimpton Tryon Park Hotel in Charlotte.

The event offers financial institutions an opportunity to connect directly with FHLBank Atlanta President and CEO Reggie O’Shields and the Bank’s leadership team. Attendees will hear about the Bank’s vision for the future, gain leadership perspectives on the economic and regulatory landscape, and engage in meaningful conversation with fellow members.

Wednesday, Oct. 28 | 10:00 am – 1:00 pm

Kimpton Tryon Park Hotel

303 S. Church Street

Charlotte, NC 28202

Need Credits? Earn CRCM, CPE, SHRM and More!

Looking to skill up? North Carolina Bankers Association is making it easier than ever to invest in your professional growth. Sign up for one of the upcoming webinars from our partnered providers:

Bank of America Commits $250 Billion to U.S. Infrastructure

Charlotte-based Bank of America has launched a $250 billion initiative supporting digital, energy and physical infrastructure projects across the United States. The bank expects to deploy the capital by July 2027 through lending, investment, capital markets and advisory services focused on areas including data centers, power generation and transportation.

"Wherever there is a human being, 
there is an opportunity for kindness.”

- Seneca