The Federal Reserve recently unveiled a tool to help small community banks—those with less than $1 billion in assets—comply with a new accounting standard they are required to implement by 2023. The standard is the current expected credit loss (CECL) methodology for setting banks’ loan loss allowances, and the tool is called SCALE—the Scaled CECL Allowance for Losses Estimator.
The Paycheck Protection Program (PPP)—which involved thousands of participating lenders, millions of borrowers and hundreds of billions of dollars in loans—ended on May 31, 2021.
U.S. commercial banking, like many sectors of the economy, appears to be bouncing back after a challenging 2020. Return on average assets (ROA)—a key benchmark of bank profitability—averaged 1.38% in the first quarter of 2021, up 67 basis points from its year-end 2020 level and 100 basis points from a year earlier.
This month, we are examining how these entrants have affected competition in the provision of financial services. Fintech firms have been labeled “disrupters.” Whether teaming up with financial institutions or going it alone, fintech firms—or neobanks—are rapidly gaining market share in several areas formerly dominated by financial institutions, such as payments and consumer loans.
Read More about Banks See Challenges from Fintech Disruption
The Financial Crimes Enforcement Network (FinCEN) today issued an Advance Notice of Proposed Rulemaking (ANPRM) to solicit public comment on a wide range of questions related to the implementation of the beneficial ownership information reporting provisions of the Corporate Transparency Act (CTA).