Wednesday, December 11, 2019

Week of Nov. 11

In This Issue…

OBA comments on Fed real-time payments initiative

As requested by the Federal Reserve, the OBA filed a comment letter Thursday in our ongoing effort to support the Fed’s decision to create a real-time payments network. Under the proposal, the Fed is to create a payments settlement system for real-time payments.

That’s the good news. The bad news is “FedNow” won’t be ready for use until 2023 or (more likely) 2024. In the interim, banks that choose to develop a real-time payment solution for their customers can utilize The Clearing House, which has already implemented a RTPS that is available today. It is merely an option for your consideration.

Our priorities in the letter included some simple “must-haves:”

  • Interoperability: We said the FedNow system must be interoperable with the Clearing House system or any other RTP networks that may be created before FedNow becomes a reality.
  • Exclusivity: Ensuring the Fed’s system is open only to chartered financial institutions.
  • Asking the Federal Reserve to commit up front it will provide all system requirements and technical specifications to the industry’s core providers well in advance (and not at the last minute) of launching the new FedNow system.

It’s of critical importance to the industry there be a single overall system able to send payments in real time. A single process is much more efficient for all parties, and helps the Fed achieve its goal of developing a ubiquitous operating environment.

Click here to read the comment letter.

Back to top

Interagency webinar to address community bank leverage ratio

Federal banking regulators have announced plans to host an interagency webinar on the optional community bank leverage ratio framework. The webinar is scheduled for 1 p.m., Thursday, Nov. 21. The program will be followed by a question and answer session.

Participants can join the webinar event using the following link: https://www.mymeetings.com/nc/join.php?i=PWXW9687895&p=8722196&t=c.

  • Participants may dial in to the webinar by calling 800-619-3328 and using participant passcode 8722196.
  • Participants are asked to join the webinar 20 minutes before it begins.

A community bank compliance guide on the CB Leverage Ratio can be found here: https://www.fdic.gov/regulations/resources/cbi/cblr-guide.pdf.

Conference slides and a webinar broadcast will be available after the webinar on the FDIC’s regulatory capital website. Here’s the website: https://www.fdic.gov/regulations/capital/capital/index.html.

Back to top

Nondeductible portion of OBA dues calculated

The calculation representing the nondeductible portion of member dues attributable to lobbying expenditures has been made for the OBA’s year ending April 30, 2019.

The source of the information used to determine this percentage included the Association’s general ledger and an estimate of the percentage of time related to applicable personnel’s involvement with lobbying activities by management of the Association. The OBA has reviewed the details involved in the calculation and have indicated it appears to represent the lobbying expenses for the year ending April 30, 2019.

As a result of these procedures, it has been determined the applicable percentage, as previously described to be 15.47 percent.

If you have any questions, please contact Lea Ann Jackson at the OBA.

Back to top

OBA education corner …

So, autumn is only going to last approximately 36 hours this year? Huh. Well, while pondering the meteorological mysteries of our great state, check out the upcoming seminar, webinars, schools and conferences!

  • Top 15 Issues with HMDA, Nov. 20, webinar — This program provides the top 15 issues that may be undermining your HMDA compliance efforts.
  • IRS Information Reporting: Rules and Forms, Nov. 20, webinar — Learn about the many forms financial institutions must report, with an emphasis on when and exactly what to report.
  • FDIC Insurance Update and Review, Nov. 21, webinar — During this webinar we will review coverages of accounts and how the FDIC categories of insurance covers our customers.
  • Safe Deposit Marketing and Profitability, Nov. 22, webinar — We will provide clear, concise recommendations to market this service, improve your bottom line and satisfy these consumers.
  • TRID Hot Spots, Nov. 26, webinar — This webinar will take a look at hot spot areas related to TRID. Learn what examiners are citing as well as other common errors in plain English.
  • Understanding Revocable and Irrevocable Trust Documents, Nov. 26, webinar — This presentation will provide financial institution personnel with best practices to use when dealing with these complex legal documents.
  • 2019 Farm Bill Update, Dec. 4, Oklahoma City — This seminar is planned to occur in the same time frame in which farmers will be offered the chance to reelect to either Agricultural Risk Coverage (ARC) or Price Loss Coverage (PLC) this fall for the 2019 and 2020 crop years.

Back to top