The Federal Deposit Insurance Corp. (FDIC) issued, on Aug. 23, 2018, its “Quarterly Banking Profile,” covering the second quarter of 2018. According to the report, FDIC-insured commercial banks and savings institutions earned $60.2 billion, an increase of $12.1 billion (25.1 percent) from the previous year. The increase was due to higher net interest income and a lower effective tax rate.
The report provides these additional second-quarter statistics:
On Aug. 28, 2018, the OCC issued an advance notice of proposed rulemaking (ANPR) to solicit ideas for building a new framework for the regulations that implement the Community Reinvestment Act (CRA). Comments received may assist in the development of more specific policy proposals or future rulemakings.
The ANPR requests comment on various areas of improvements to the CRA regulations including:
The OCC, on Aug. 15, 2018, updated its Policies and Procedures Manual, which details the framework for determining how evidence of discriminatory or other illegal credit practices affects the CRA evaluation and assigned rating of national banks, federal branches, and federal savings associations.
The updated manual clarifies that in assigning a CRA rating, the OCC examines a bank’s CRA performance for a given time period and then makes necessary adjustments based on evidence of discriminatory or other illegal credit practices. Guidance is provided for examiners on determining the adverse effects of the evidence on a bank’s CRA evaluation, including whether a composite rating and/or component performance test rating downgrade is appropriate.
According to the OCC, its policy is “generally not to penalize a bank by lowering its CRA rating when examiners have determined the bank has taken appropriate remedial actions because penalties in such cases can unnecessarily distract and divert the bank’s resources from lending, investing, or serving the relevant communities and thereby frustrate the CRA’s purposes.”
The PCAOB updated, on Aug. 23, 2018, its staff guidance on changes to the auditor’s report that took effect for calendar year-end audits of Dec. 31, 2017, annual financial statements. The updates to the guidance relate to the following topics: