In a speech on June 12, 2019, at CATO Summit on Financial Regulation, FDIC Chair McWilliams talked about the nation and the banking system’s role in society and economic well being. Drawing extensively from her own background and experiences as an immigrant to the United States, she noted one role of the FDIC as promoting economic inclusion.
FDIC insured institutions report $60.7 billion in aggregate net income in the first quarter of 2019, an 8.7 percent increase from a year earlier. Net interest income increased by $7.9 billion from a year earlier, explaining the jump in overall net income. Nearly 80 percent of banks reported increased net interest income from a year earlier, and the average net interest margin rose from 3.32 percent to 3.42 percent.
The federal financial institution regulatory agencies issued updated FAQs for the new accounting standard on credit losses. The newly issued FAQs include both changes to previously issued FAQs and new FAQs.
In a speech earlier this year, FDIC Chair Jelena McWilliams provided some insights concerning her vision with regard to bank regulation.
Changing and advancing technology continues to impact the financial services industry. This influence is far reaching, and has implications not only related to consumer preferences but also to raise policy and regulatory questions.
The Office of Inspector General issued a report dated January 28, 2019 with recommendations designed to improve the Bureau Division of Supervision, Enforcement and Fair Lending’s (SEFL) Matters Requiring Attention (MRA) follow-up process.
After an uptick in the third quarter of 2018, the Mortgage Bankers Association reported delinquency rates on 1-4 family residential properties have fallen to an 18 year low. This is according to the Mortgage Bankers Association National Delinquency Survey.
The new CECL standard is presumably designed to enhance the stability of the financial sector by providing more accurate assessments of loan losses. It also requires a change from the current estimates of loan losses that are produced by most institutions today to projections or forecasts.
Speaking at the American Bar Association Banking Law Committee Annual Meeting, "Principles of Supervision"; in Washington, D.C., FDIC Chair McWilliams described her vision and priorities for the Corporation.
As concerns continue to grow for investors due to market volatility and increasingly pessimistic economic forecasts, financial institutions should be paying particular attention. The economic news, coupled with the prospect of more interest rate hikes, not only create conditions for weakening asset quality and earnings but also highlights the importance of measuring these potential impacts on loan portfolios.