• Final Basel III capital rule will affect community banks

    The final rules for the Basel III international capital accord, which will be phased in between the beginning of this year and 2019, include some relief for community banks. There are also some changes that affect the capital standards and reporting for community banks.
  • IRS directs examiners not to challenge certain bank bad debt deductions

    On October 24, 2014, the Internal Revenue Service (IRS) issued a directive (LB&I I-04-1014-008) regarding bad debt deductions related to eligible debt and eligible debt securities. The directive provides large business and international (LB&I) examiners with guidance on deductions for bad debts taken under Internal Revenue Code (IRC) §166.
  • Regulatory noncompliance is now a financial matter

    More punitive regulatory approach raises financial statement audit scrutiny: In the aftermath of the Great Recession, regulators have turned dramatically to a far more punitive approach in dealing with actual and alleged instances of noncompliance with laws and regulations by financial institutions. The increased presence of significant financial consequences, brings into greater light a financial statement auditing standard that previously had infrequent application and limited effect on the financial condition and results of reporting companies’ operations.
  • GSEs to loosen lending standards

    At the recent Mortgage Bankers Association annual convention, Federal Housing Finance Agency (FHFA) Director Met Watt and US Secretary of Housing and Urban Development (HUD) Julian Castro announced a relaxation of lending standards for Government-Sponsored Enterprise (GSEs).
  • OCC: You can’t outsource responsibility

    The Office of the Comptroller of the Currency (OCC) recently updated its risk-management guidelines for third-party relationships, and the new guidelines give banks more responsibility than ever. According to the new guidelines, financial institutions have many of the same responsibilities for managing risk from vendors as they do from their own operations.