Links in “Banks”

The market share for smaller financial institutions is shrinking at an alarming rate. A report released this last February by the Harvard Kennedy School on “The State and Fate of Community Banking” is capturing industry attention for its dire findings. According to the report’s authors, the community banks’ share of U.S. banking asset and lending markets has fallen by 50% in the last 20 years. Moreover, the rate of decline has increased significantly in the past four years—almost double the rate it had sunk in the previous 16 years of decline. Is there any good news? And what did the report find that can help the smaller financial institution stay afloat. [6/9/15]

Beyond the increased costs of compliance, Dodd-Frank rules have resulted in fewer loans, according to this survey. About 80% expect the CFPB's mortgage lending rules to result in a reduction of credit availability. [6/9/15]

The Office of Inspectors General for the regulatory agencies find their efforts to coordinate their regulatory oversight activities were generally good, but there remains room for enhanced coordination, such as conducting more simultaneous examinations, better handling of conflicting supervisory determinations, and more. [6/9/15]

Investigators in New York uncover identity-theft schemes hatched by tellers that cost hundreds of bank customers millions of dollars. [6/9/15]

Finding your card was used to buy some gas in a different state is one thing. But what about hackers who implant a bug that skims off a tiny fraction of a retailers online purchases, then when the news of the bug is revealed, profits again by shorting the retailer's stock? The long cyber con is very real. [6/8/15]

Tips for what bank customers should do if they suspect their identity may have been compromised. [6/8/15]

The CFPB has ordered three core processors to provide anonymized data on overdraft charges. One so far has said it may pass along the costs of complying to its client banks. The ABA responds by telling the CFPB that it should use part of its own $600 million budget to bear the cost. [6/8/15]

Pew Charitable Trusts most recent evaluation of banking practices continues to take issue with overdraft fees of $35 or more and the practice of reordering transactions to maximize the fees that are incurred. [6/8/15]

The importance of a robust BSA/AML monitoring system is clear. However, an all-encompassing monitoring system often feels beyond the reach of the smaller financial institution. AdvisX analyst Cody Knudsen brings us the second BSA/AML secret weapon in this special two-part Risk Watch episode. [6/5/15]

The House of Representatives approved a measure that would bar the Department of Justice from using appropriated funds to bring enforcement actions that rely on disparate impact under HUD. Unfortunately, the measure did not address disparate impact actions brought under Equal Credit Opportunity Act. [6/5/15]