#2022-05, February 11, 2022

Acting FDIC Chair Announces Priorities for 2022

This week, the Federal Deposit Insurance Corporation’s (FDIC) Acting Chairman, Martin Gruenberg, announced his policy agenda for the agency for the remainder of the year.  Specifically, he highlighted the following five issues: revisions and updates to the Community Reinvestment Act (CRA) through an interagency process; addressing the financial risks posed by climate change; reviewing the bank merger process; evaluating crypto-asset risk; and implementing the capital framework commonly known as “Basel IV,” which was delayed due to the pandemic.

As we reported previously, Gruenberg and Consumer Financial Protection Bureau (CFPB) Director Rohit Chopra had attempted to advance a request for information (RFI) regarding bank mergers over the objection of former Chairman Jelena McWilliams.  McWilliams resigned from the agency effective February 4.

To read more, click here.

SBA: PPP Borrowers May Request Review of Partially Forgiven Loans

The Small Business Administration (SBA) recently issued a procedural notice stating that it will allow Paycheck Protection Program borrowers to request a loan review by the agency when the lender determines that the borrower is entitled to only partial forgiveness of the PPP loan.  Under the notice, when a lender receives a forgiveness remittance from SBA on a loan where only a portion of the PPP loan was forgiven, the lender must inform the borrower that it has 30 calendar days to seek an SBA loan review of the lender’s decision.  SBA retains discretion to accept or deny the borrower’s request to review the loan.  If SBA selects the loan for review, the loan is not deferred and the borrower must continue to make payments on the remaining balance of the loan.

The agency also stated that by February 26, lenders must notify all of their borrowers of loans that previously received a partial forgiveness decision that the borrower has 30 calendar days to seek, through the lender, an SBA loan review of the lender’s partial forgiveness decision.  Additional guidance will be provided to lenders in the coming days.

To read the procedural notice, click here.

FASB Rejects Further CECL Delays

The Financial Accounting Standards Board this week rejected a proposal to delay the current expected credit loss (CECL) accounting standard for those banks that have yet to adopt it.  Therefore, CECL will become effective for smaller SEC registrants and private companies on January 1, 2023.  During the meeting, FASB board members also expressed support for simplified methodologies, including the Federal Reserve Board’s “SCALE” methodology.

Synthetic ID Fraud Mitigation Toolkit Available

The Federal Reserve recently released a toolkit for banks and consumers to mitigate the risks of increasing instances of synthetic identity fraud, which occurs when fraudsters create new identities out of pieces of real or fictitious information.  The toolkit includes downloadable resources explaining the basics of synthetic identity fraud, how fraudsters use synthetic identities and how to identify synthetic identities.  The Fed said it will add resources to the toolkit in the future, including more on synthetic identity fraud detection and mitigation.

To access the toolkit, click here.

Registration for ABA Washington Summit and ICBA Capital Summit Now Open

The American Bankers Association (ABA) is hosting its annual Washington Summit in Washington, DC on March 7-9, 2022.  The meeting will feature opportunities to hear from key federal policymakers and regulators throughout the conference.  In conjunction with the Washington Summit, ABA is also hosting the Mutual Community Bank Forum, Emerging Leaders Forum, and the Women’s Leadership Forum.  The program will be available in a virtual, livestream format this year, so staff at your bank can participate without traveling to Washington.

For more information on ABA’s Washington Summit and to register, click here.

In addition, the Independent Community Bankers of America (ICBA) recently announced that registration is now open for the Capital Summit, which will be held on May 1-4, 2022 in Washington.  Invited speakers include Treasury Secretary Janet Yellen and Senate Banking Committee member Tim Scott (R-SC).

For more information on ICBA’s Capital Summit and to register, click here.

Bankers planning to attend should note that the District of Columbia has implemented a citywide vaccination entry requirement, which requires establishments to verify that patrons are vaccinated against COVID-19.  This includes the hotels which serve as the sites of the Washington Summit and the Capital Summit.  

Attendees will be required to provide their vaccination status to enter meeting rooms in the hotels as well as restaurants and certain other public spaces.  Mask use will also be required in most public spaces unless actively eating or drinking.  We encourage you to plan accordingly.  If health and safety protocols change, we will provide updates in future Washington Updates.

Regulators Hosting Virtual Community Reinvestment Conference

On March 15-17, the federal banking regulatory agencies will host the 2022 virtual National Interagency Community Reinvestment Conference on March 15-17.  The biennial conference offers participants the opportunity to learn about the CRA, participate in regulator-led training on CRA examinations and discuss best practices, emerging ideas and challenges in community development.

To learn more and register for the conference, click here.