COVID-19 and Your Financial Institution
The current situation our nation faces is unprecedented and something no one alive has seen in their lifetime. Considering that, it’s important for financial institutions to understand that the new coronavirus, COVID-19, is a very serious matter from a health standpoint foremost, but also from a financial standpoint as Americans lose work, businesses are shuttered or limited and most people, by order of the government or by their own good sense, stay at home over the next few weeks.
You are probably well aware that this virus has affected the entire world and that most governments, including U.S. local governments and the U.S. federal government, are restricting travel, business and more in an effort to limit the spread of the virus and stave off an unmanageable influx of patients to hospitals. This has put a serious strain on the financial industry in many ways and some financial institutions are likely feeling the pressure much more acutely.
The federal financial regulatory agencies that govern banking laws in the U.S. have released a statement encouraging all financial institutions to work with customers and borrowers as much as possible, particularly by granting loan modifications in a prudent and proactive manner. These federal regulators are working with institutions to ease some of the strain as much as possible with careful changes to some regulations and reporting requirements, keeping up with this changing situation as much as possible.
The National Credit Union Association is also making urgent needs grants available to low-income credit unions that may be particularly struggling at the moment. The grants give these institutions up to $7,500 to buy vital equipment used to service customers, consulting services to aid affected businesses and marketing materials to reassure credit union members.
As this situation develops, there may be more changes to regulations meaning it would be prudent for institutions to keep abreast of developments.
It’s also a good idea to limit risk to yourself, institution employees and customers by being careful, limiting exposure and following the CDC’s guidance for how to handle this situation at work and properly clean and disinfect your institution.
The Edcomm team is weathering this storm with you and are here to help you keep abreast with the best way to handle this situation. Keep an eye on our blog for the latest information and contact us if you have questions about compliance training for your institution.
Consumer Financial Protection Bureau (CFPB)
CFPB and U.S. Department of Education Coordinate to Better Serve Student Loan Borrowers
The Consumer Financial Protection Bureau and the U.S. Department of Education announced that the two entities signed a Memorandum of Understanding (MOU) to better serve student loan borrowers. The MOU states that the two agencies will share information about borrower complaints and hold quarterly meetings to discuss the complaints and the resolution of those complaints.
Federal Deposit Insurance Corporation (FDIC)
The Office of the Comptroller of the Currency (OCC)
FDIC and OCC Extend Comment Period for CRA Rule Changes
The Federal Deposit Insurance Corporation and the Office of the Comptroller of the Currency announced a thirty-day extension to the comment period for proposed rule changes regarding the Community Reinvestment Act, which will now end on April 8th. The rule changes hope to increase banking activity in areas where credit, responsible lending and better access to banking services are more greatly needed.
FDIC Asks for Public Input on Updating Signage and Advertising Requirements
The Federal Deposit Insurance Corporation Announced that it would be seeking public comment on ways to modernize the current regulations regarding signage and advertising. The idea is to better reflect the current operations of the industry and how customers use banking services, given that the last update was made in 2006 and the industry has changed dramatically since then.
Securities and Exchange Commission
SEC Proposes Modernization of Key Market Infrastructure
The Securities and Exchange Commission announced a proposal to modernize infrastructure used to collect, consolidate and distribute market data for exchange-listed national market system (NMS) stocks. To better serve investors in today’s equity markets, this proposal would expand NMS data and update the contents.
Federal Reserve Board (FRB)
FRB Releases Hypotheticals for 2020 Stress Tests
The Federal Reserve Board announced the release of the 2020 hypothetical scenarios that would be used for stress test exercises. These tests ensure that large banks have the resources to continue serving their customers and communities even if there is a severe recession. The most sever of these hypotheticals includes a global recession and increased stress on corporate debt markets and commercial real estate.
Why Your Bank Employees Need Security Training
Security is important in almost every public place. Whether it’s meant to make visitors comfortable, protect the people in that space or protect the space and its assets, security is an important part of many businesses. For banks and credit unions, security is of the utmost importance. Physical and digital security are paramount to ensuring that banks and other financial institutions are able to keep the money they are trusted with and the individuals who regularly are present in the institution safe. The best way for any financial institution to keep things safe and secure is with proper training.
Security is Everyone’s Concern
Security and safety training are important for every level of employee at a financial institution. Anyone in a bank can leave it vulnerable to physical and digital threats, from the bottom to the top. Knowing security and safety best practices are integral to any comprehensive training program and integral to the daily operations of a bank. Training should include red flags and warning signs, what employees should do to in the event of an emergency, what employees should do in the event of a robbery, how to properly open and close a bank or branch, the responsibilities of the chief security officer and more.
Comprehensive Training Programs
From the best way to handle suspicious activity to proper closing procedures, even the tiniest mistakes can lead to major repercussions. That’s why it’s better to be safe than sorry and ensure that your bank employees know security and safety protocol in and out. And that’s where your training comes in.
Edcomm offers a diverse array of banking and finance training that can keep your institution compliant and can also help keep it safe. Our training programs are comprehensive and constantly updated to stay up to date with a quickly changing industry and brand-new technology because with changes and new technology comes new threats.
Contact Us
If you’re looking for compliance and bank security training, contact the Edcomm team today!
Consumer Financial Protection Bureau (CFPB)
CFPB Announces Actions Against Fraudulent Debt Relief Companies
The Consumer Financial Protection Bureau filed charges against several companies and individuals associated with illegal student debt relief practices. These companies and individuals were illegally obtaining consumer reports, charging illegal advance fees, and engaging in fraudulent conduct. These actions were filed against Chou Team Realty, LLC, which does business as Monster Loans, Land Tech Loans, and Docu Prep Center Inc.
The Office of the Comptroller of the Currency (OCC)
OCC and Other Agencies Announce Annual CRA Asset-Size Threshold Adjustments for Small and Intermediate Small Institutions
The Office of the Comptroller of the Currency and the other federal banking regulatory agencies announced the annual adjustments to the thresholds that are used to define which institutions are a small bank, small savings association, intermediate small bank, and intermediate small savings association. These definitions are based on asset-size thresholds set in the CRA, which requires they be adjusted each year.
Securities and Exchange Commission
SEC Proposes Improved Market Data Plan Governance
The Securities and Exchange Commission proposed a plan to modernize the governance of National Market System (NMS). The proposed order would require equities exchanges and FINRA to file a new NMS plan with the SEC to increase transparency and reduce conflicts of interest. The SEC is seeking public comment on this proposal.
Federal Deposit Insurance Corporation (FDIC)
The FDIC Updates Money Smart for Small Business Curriculum
The Federal Deposit Insurance Corporation and the US Small Business Association announced updates to the Money Smart for Small Business curriculum, which focuses on helping small business owners and entrepreneurs understand their relationship with their bank and how it can help them reach their goals. The updates focus on banking and credit and are now available.
Federal Reserve Board (FRB)
FRB Releases Preliminary Treasury Data for 2019
The Federal Reserve Board announced preliminary data showing that in 2019, Reserve Banks made approximately $54.9 Billion in payments to the US Treasury. The final financial statements for the 2019 audit of Reserve Banks will be published in March. The data released in March may adjust these preliminary figures.
