Thursday, October 21, 2021

Week of July 12

In This Issue…

Tenth District energy activity increases steadily

The Federal Reserve Bank of Kansas City released the second quarter Energy Survey last week, which revealed Tenth District energy activity continued to increase steadily, with revenues and profits rising at a faster pace. Activity continued to outpace the previous year, and expectations remained at solid levels.

“Growth in District drilling and business activity remained solid in Q2, and expectations indicated further expansion in the next six months,” said Chad Wilkerson, Oklahoma City Branch executive and economist at the Federal Reserve Bank of Kansas City. “In addition, indexes for firms’ revenues and profits jumped to their highest levels since the survey began in 2014.”

The Kansas City Fed’s quarterly Tenth District Energy Survey provides information on current and expected activity among energy firms in the Tenth District. The survey monitors oil and gas-related firms located and/or headquartered in the Tenth District, with results based on total firm activity. Survey results reveal changes in several indicators of energy activity, including drilling, capital spending, and employment. Firms also indicate projections for oil and gas prices. All results are diffusion indexes – the percentage of firms indicating increases minus the percentage of firms indicating decreases. Results from past surveys and release dates for future surveys can be found at https://www.kansascityfed.org/surveys/energy-survey.

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OCC announces organizational changes

The Office of the Comptroller of the Currency last week announced structural changes intended to enhance the agency’s efficiency and effectiveness.

The agency is realigning its Economics, Supervision System and Analytical Support, and Systemic Risk Identification Support and Specialty Supervision units under a new senior deputy comptroller for supervision risk and analysis. Blake Paulson will move from the chief operating officer position to take on this new role. The agency is retiring the chief operating officer role. As a result of this change, agency bank supervision units (Bank Supervision Policy, Midsize and Community Bank Supervision, Large Bank Supervision, and Supervision Risk and Analysis) and the Office of Management will report directly to the head of the agency.

The agency also will merge its Enterprise Risk Management Office with its Office of Enterprise Governance and Ombudsman. Senior Deputy Comptroller Larry Hattix will take on the additional title of chief risk officer overseeing that function.

Bill Rowe, who served as the agency’s chief risk officer, will be acting on his long-time plans to retire at the end of July. Until then, he will step into a special senior advisor role to focus on enhancing the OCC’s framework for resolving banks with uninsured deposits.

These changes are expected to be implemented this summer.

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OBA education corner …

Did all your fingers survive the Fourth of July last weekend? If so, use them click and sign up for one of the our latest education offerings below!

NOTE: Effective March 16, 2020, and until further notice, TTS (our webinar provider) has extended the OnDemand access period for all ‘Live Plus Five (Days)’ registrants to 60 days (versus five business days). Also, they are waiving the $75 per location fee for additional locations.

  • Regulation CC: Holds, July 20, webinar — Many questions will all be addressed in this informative and easy to follow webinar for the frontline. We will also take a look at the changes that are proposed–new disclosure format and new teller hold notices.
  • Troubled Debt Restructuring, July 20, webinar — Attending this webinar will enable you to recognize a true troubled debt restructuring so that regulator reporting is accurate and to know how to manage them from an lending and accounting perspective.
  • What Directors Need to Know About Cybersecurity, July 21, webinar — A financial institutions’ board of directors has the ultimate responsibility for securing customer information, as well as the responsibility for approving financial investments into cybersecurity, creating accountability throughout the institution for security operations, and setting clear expectations for management.
  • What to Do When a Customer Dies, July 22, webinar — We’ll walk you through the best practices when dealing with a customer’s death – both on the deposit side and the loan side, as well as unique issues that can arise when doing business with the decedent’s estate.
  • The Active Shooter: Are You Prepared to Respond?, July 27, webinar — This session covers steps to prepare employees and managers to respond appropriately should an active shooter incident occur.
  • Opening LLC Accounts, July 27, webinar — This detailed webinar will help you make the best account opening and paperwork decisions for the LLC.
  • Basic New Accounts Seminars, Aug. 18-Tulsa; Aug.19-Oklahoma City — This full-day workshop teaches essential new account opening procedures, best practices, and compliance requirements while focusing on vital identifying information for every new account type.

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