Federal Banking Regulators Join Forces on Supervisory Guidance

Sep 28

From: Lexology

Richard E. Gottlieb and Charles E. Washburn, Jr. | Manatt Phelps & Phillips LLP

All five federal banking regulators recently issued an interagency statement, explaining the role of supervisory guidance and describing the agencies’ approach to supervisory guidance.

The message from the Board of Governors of the Federal Reserve System (Federal Reserve), Federal Deposit Insurance Corporation (FDIC), National Credit Union Administration (NCUA), Office of the Comptroller of the Currency (OCC) and the Bureau of Consumer Financial Protection (CFPB) would suggest that, because supervisory guidance “does not have the force and effect of law,” future use of the Congressional Review Act (CRA) to roll back such guidance may no longer be an option.

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US GAO: Community Banks: Effect of Regulations on Small Business Lending and Institutions Appears Modest, but Lending Data Could Be Improved

Sep 05

From US GAO

GAO-18-312: Published: Aug 6, 2018. Publicly Released: Sep 5, 2018.

Small businesses often rely on community banks for credit. Since the financial crisis, federal regulators have implemented new banking regulations, which could create difficulties for small businesses seeking loans from their local banks.

We found that the economic environment and competition, rather than regulatory burden, explained most of the trends in this lending from 2001-2017. We also found that community banks’ lending to small businesses has largely recovered since the crisis. However, the data that these banks report to federal regulators is incomplete, so we recommended that federal regulators evaluate how they collect this data.

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