R. Kinney Williams - Yennik, Inc.®
R. Kinney Williams
Yennik, Inc.

The E-mail Banking News
for the week of December 9, 2018

Published by Yennik, Inc. the acknowledged leader in independent IT security audits for financial institutions.

FFIEC information technology audits - As a former bank examiner with over 40 years IT audit experience, I will bring an examiner's perspective to the FFIEC information technology audit for bankers in Texas, New Mexico, Colorado, and Oklahoma. 

December 6, 2018 - Detroit Economic Activity Index - The Detroit Economic Activity Index measures growth in economic activity for the city of Detroit. The index is constructed using a mixed-frequency dynamic factor model of 23 Detroit-specific data series capturing income, employment, residential and commercial real estate activity, electric customer counts, tax revenues, and port activity. www.chicagofed.org/publications/deai/index

December 6, 2018 - Managing Risk in Global Financial Markets: CCP Governance, Supervisory Stress Testing, and Default Management Auctions By Nahiomy Alvarez - The second annual Symposium on OTC Derivatives was held in Shanghai on June 26, 2018. www.chicagofed.org/publications/chicago-fed-letter/2018/408

December 6, 2018 - NCUA Releases Q3 2018 Credit Union System Performance Data - Data on the financial performance of federally insured credit unions for the quarter ending Sept. 30, 2018, are now available from the National Credit Union Administration. www.ncua.gov/newsroom/Pages/news-2018-dec-ncua-releases-q3-credit-union-system-performance-data.aspx

December 6, 2018 - FDIC Requests Information on the Deposit Insurance Application Process - The Federal Deposit Insurance Corporation today announced that it is seeking comments from interested parties on all aspects of the deposit insurance application process. The request is part of the FDIC's efforts to enhance transparency, efficiency, and accountability. www.fdic.gov/news/news/financial/2018/fil18080.html

December 6, 2018 - FDIC Re-Issues its Processing Timeframe Guidelines for Applications, Notices, and Other Requests - The FDIC is re-publishing its timeframe guidelines for processing applications, notices, requests, and other filings submitted on behalf of existing and proposed institutions and other parties. www.fdic.gov/news/news/financial/2018/fil18081.html

December 6, 2018 - Review Process for Draft Deposit Insurance Proposals - The FDIC is establishing a process to allow prospective organizers the option to request FDIC review of a draft deposit insurance proposal prior to filing an official application. www.fdic.gov/news/news/financial/2018/fil18082.html

December 6, 2018 - FDIC Issues an Update to its Publication Entitled Applying for Deposit Insurance – A Handbook for Organizers of De Novo Institutions, Finalizes its Deposit Insurance Applications Procedures Manual, and Establishes a Designated Applications Mailbox - The FDIC issued an update to its publication entitled Applying for Deposit Insurance – A Handbook for Organizers of De Novo Institutions, and is issuing its Deposit Insurance Applications Procedures Manual in final form. www.fdic.gov/news/news/financial/2018/fil18083.html

December 6, 2018 - FDIC Announces Actions to Promote a More Transparent, Streamlined, and Accountable Deposit Insurance Application Process - The Federal Deposit Insurance Corporation is announcing multiple initiatives and resources related to the deposit insurance application process for organizers of new, or de novo, banks, and to promote a more transparent, streamlined and accountable process for all applications submitted to the agency. www.fdic.gov/news/news/press/2018/pr18095.html

December 6, 2018 - Advanced Notice of a Meeting under Expedited Procedures - A closed meeting of the Board of Governors of the Federal Reserve System will be held under expedited procedures at 11:30 a.m. on December 10, 2018. Matter(s) considered: Review and determination by the Board of Governors of the advance and discount rates to be charged by the Federal Reserve Banks. Supervisory Matter. www.federalreserve.gov/recentpostings.htm

December 6, 2018 - Statistical Release - Financial Accounts of the United States - Z.1 - The Financial Accounts of the United States includes data on transactions and levels of financial assets and liabilities, by sector and financial instrument; full balance sheets, including net worth, for households and nonprofit organizations, nonfinancial corporate businesses, and nonfinancial noncorporate businesses; Integrated Macroeconomic Accounts; and additional supplemental detail. www.federalreserve.gov/releases/z1/current/default.htm 

December 5, 2018 - Chicago Fed Survey of Business Conditions - Survey shows growth picked up in October and early November - The Chicago Fed Survey of Business Conditions Activity Index increased to -4 from -11, suggesting that growth in economic activity remained at a modest pace in October and early November. www.chicagofed.org/~/media/publications/cfsbc/2018/cfsbc-december2018-pdf.pdf

December 5, 2018 - St. Louis Fed Releases Beige Book - The Federal Reserve Bank of St. Louis released its portion of the Federal Reserve’s latest Beige Book, published today. The local report summarizes economic conditions for the Eighth District, which is based in St. Louis and covers all of Arkansas and parts of Illinois, Indiana, Kentucky, Mississippi, Missouri and Tennessee. www.stlouisfed.org/news-releases/2018/12/st-louis-fed-releases-beige-book

December 5, 2018 - Informal review by the Federal Reserve Banks of current economic conditions in their Districts - Most of the twelve Federal Reserve Districts reported that their economies expanded at a modest or moderate pace from mid-October through late November, though both Dallas and Philadelphia noted slower growth compared with the prior Beige Book period. www.federalreserve.gov/monetarypolicy/beigebook201812.htm

December 5, 2018 - Speech by Vice Chairman for Supervision Quarles on banks as vital infrastructure for rural communities of the West At the Stanford Institute for Economic Policy Research, Stanford University, Stanford, California.  www.federalreserve.gov/newsevents/speech/quarles20181205a.htm

December 4, 2018 - The Recent Rise in Health Care Inflation By Diane Alexander - Health care services inflation was consistently at or above 3% per year in the early 2000s, declined from around 3% at the end of the 2000s to under 1% in 2015, and then rebounded to just under 2% in early 2018. www.chicagofed.org/publications/chicago-fed-letter/2018/407

December 4, 2018 - OCC Releases CRA Evaluations for 28 National Banks and Federal Savings Associations - The Office of the Comptroller of the Currency today released a list of Community Reinvestment Act performance evaluations that became public during the period of November 1, 2018 through November 30, 2018. www.occ.gov/news-issuances/news-releases/2018/nr-occ-2018-134.html

December 4, 2018 - FDIC's Advisory Committee on Systemic Resolution to Meet on December 6, 2018 - FDIC Chairman Jelena McWilliams, will begin the meeting at 9:00 a.m. with opening remarks. After the chairman's statement, the committee members will discuss and receive updates on Title I: Making Bankruptcy Work; Title II: Orderly Liquidation; and Cross-Border Resolution Implementation. www.fdic.gov/news/news/press/2018/pr18093.html

December 4, 2018 - FDIC Issues List of Banks Examined for CRA Compliance - The list covers evaluation ratings that the FDIC assigned to institutions in September 2018. www.fdic.gov/news/news/press/2018/pr18092.html

December 4, 2018 - Agencies seek public comment on proposal to raise appraisal exemption threshold for residential real estate transactions - The three federal banking agencies announced they are seeking public comment on a proposal to raise the threshold for residential real estate transactions requiring an appraisal from $250,000 to $400,000.
Press Release: www.federalreserve.gov/newsevents/pressreleases/bcreg20181204a.htm
Press Release: www.fdic.gov/news/news/press/2018/pr18094.html
Press Release: www.occ.gov/news-issuances/news-releases/2018/nr-ia-2018-133.html

December 4, 2018 - Minutes of the Board's discount rate meeting on November 8, 2018 - In a joint meeting of the Federal Open Market Committee and the Board today, the FOMC decided to maintain the target range for the federal funds rate at 2 to 2.25 percent. www.federalreserve.gov/newsevents/pressreleases/files/monetary20181204a1.pdf 

December 3, 2018 - Symposium Participants Expect Economy to Grow at Pace Somewhat Above Average in 2019 - The 32nd annual Economic Outlook Symposium, held in Chicago on November 30, drew participants from the manufacturing, banking, and auto industries, as well as academia and consulting and service firms.  www.chicagofed.org/~/media/others/events/2018/economic-outlook-symposium/eos-press-release-pdf.pdf

December 3, 2018 - OCC Report Discusses Key Risks for Federal Banking System - The Office of the Comptroller of the Currency today reported credit, operational, compliance, and interest rate risks are key themes for the federal banking system in its Semiannual Risk Perspective for Fall 2018. www.occ.gov/news-issuances/news-releases/2018/nr-occ-2018-131.html

December 3, 2018 - Federal Reserve Banks remain open on Dec. 5 - On Wednesday, December 5, 2018, the Federal Reserve Bank payment and securities settlement systems will operate normally. Reserve Bank cash offices will fulfill financial institution orders for currency and coin according to normal operating procedures. www.frbservices.org/app/status/serviceStatus.do

December 3, 2018 - Joint Statement on Innovative Efforts to Combat Money Laundering and Terrorist Financing - The Board of Governors of the Federal Reserve System, the Federal Deposit Insurance Corporation, the Financial Crimes Enforcement Network, the National Credit Union Administration, and the Office of the Comptroller of the Currency are issuing the attached joint statement to encourage banks to consider, evaluate, and, where appropriate, responsibly implement innovative approaches to meet their Bank Secrecy Act/anti-money laundering compliance obligations.
Press Release: www.federalreserve.gov/supervisionreg/srletters/sr1810.htm
Press Release: www.fdic.gov/news/news/financial/2018/fil18079.html
Press Release: www.occ.treas.gov/news-issuances/bulletins/2018/bulletin-2018-44.html

December 3, 2018 - Cross-Border Bank Flows and Monetary Policy - Ricardo Correa, Teodora Paligorova, Horacio Sapriza, and Andrei Zlate - We analyze the impact of monetary policy on bilateral cross-border bank flows using the BIS Locational Banking Statistics between 1995 and 2014. www.federalreserve.gov/econres/ifdp/files/ifdp1241.pdf

December 3, 2018 - A Promised Value Approach to Optimal Monetary Policy - Timothy S. Hills, Taisuke Nakata, and Takeki Sunakawa - This paper characterizes optimal commitment policy in the New Keynesian model using a novel recursive formulation of the central bank's infinite horizon optimization problem. www.federalreserve.gov/econres/feds/files/2018083pap.pdf

December 3, 2018 - Supervisory Stress Testing For CCPs: A Macro-Prudential, Two-Tier Approach - Edward L. Anderson, Fernando Cerezetti, and Mark Manning - Stress testing has become an increasingly important mechanism to support a variety of financial stability objectives. Stress tests can be used to test the individual resilience of a single entity or to assess the system-wide vulnerabilities of a network. www.federalreserve.gov/econres/feds/files/2018082pap.pdf

December 3, 2018 - Statistical Release - Foreign Exchange Rates - G.5 - The table below shows the average rates of exchange in NOVEMBER 2018 together with comparable figures for other months. www.federalreserve.gov/releases/g5/current/default.htm

December 3, 2018 - Speech by Governor Brainard on the structure of the Treasury market Governor Lael Brainard At "The Evolving Structure of the U.S. Treasury Market" Fourth Annual Conference Hosted by the Federal Reserve Bank of New York, New York, New York.  www.federalreserve.gov/newsevents/speech/brainard20181203a.htm

December 3, 2018 - Federal Reserve Board offices in Washington, D.C. will be closed on Wednesday, December 5, 2018, in observance of the national day of mourning for former President George H.W. Bush.  www.federalreserve.gov/newsevents/pressreleases/other20181203a.htm

December 3, 2018 - Federal Reserve Board issues joint statement encouraging depository institutions to explore innovative approaches to meet BSA/anti-money laundering compliance obligations and to further strengthen the financial system against illicit financial activity.
Press Release: www.federalreserve.gov/newsevents/pressreleases/bcreg20181203a.htm 
Press Release: www.fdic.gov/news/news/press/2018/pr18091.html
Press Release: www.occ.gov/news-issuances/news-releases/2018/nr-occ-2018-130.html
Press Release: www.ncua.gov/newsroom/Pages/news-2018-dec-joint-statement-encourage-innovative-approaches.aspx

November 30, 2018 - Midwest Economy Index Points to Slower Growth in October - The Midwest Economy Index moved down to +0.23 in October from +0.31 in September. Contributions to the October MEI from all four broad sectors of nonfarm business activity and three of the five Seventh Federal Reserve District states decreased from September. www.chicagofed.org/~/media/publications/mei/2018/mei-october2018-pdf.pdf

November 30, 2018 - NCUA Issues Prohibition Notices - The National Credit Union Administration issued one prohibition notice and one prohibition order in November. These individuals are prohibited from participating in the affairs of any federally insured financial institution. www.ncua.gov/newsroom/Pages/news-2018-nov-ncua-issues-prohibition-notices.aspx

November 30, 2018 - Office of the Comptroller of the Currency Fees and Assessments: Calendar Year 2019 Fees and Assessments Structure - This bulletin informs all national banks, federal savings associations, and federal branches and agencies of foreign banks of fees and assessments charged by the Office of the Comptroller of the Currency for calendar year 2019. The bulletin becomes effective January 1, 2019. www.occ.treas.gov/news-issuances/bulletins/2018/bulletin-2018-43.html

November 30, 2018 - OCC Reduces Assessments for Regulated Banks and Savings Associations - The Office of the Comptroller of the Currency today announced it will reduce assessments on national banks, federal savings associations, and federal branches and agencies of foreign banks for 2019. www.occ.gov/news-issuances/news-releases/2018/nr-occ-2018-129.html

November 30, 2018 - FDIC Makes Public October Enforcement Actions - The FDIC issued a total of 16 orders and one notice in October. The administrative enforcement actions in those orders consisted of four consent orders; two terminations of consent orders; two Section 19 orders; one temporary order to cease and desist; four removal and prohibition orders; three civil money penalties; and one notice. www.fdic.gov/news/news/press/2018/pr18089.html

November 30, 2018 - FDIC Issues CRA Examination Schedules for First Quarter 2019 and Second Quarter 2019 - The Federal Deposit Insurance Corporation today issued the lists of institutions scheduled for a Community Reinvestment Act examination during the first quarter of 2019 and second quarter of 2019. www.fdic.gov/news/news/press/2018/pr18090.html

November 30, 2018 - Level Shifts in Beta, Spurious Abnormal Returns and the TARP Announcement - Andrew Phin, Todd Prono, Jonathan J. Reeves, and Konark Saxena - Using high frequency data, we develop an event study method to test for level shifts in beta and measure abnormal returns for events that produce such level shifts. www.federalreserve.gov/econres/feds/files/2018081pap.pdf

November 30, 2018 - Credit and Liquidity Programs and the Balance Sheet - Recent balance sheet trends, weekly chart update.  www.federalreserve.gov/monetarypolicy/bst_recenttrends.htm

November 30, 2018 - Statistical Release - Finance Companies - G.20.  www.federalreserve.gov/releases/g20/current/g20.htm

November 30, 2018 - Federal Reserve Board announces plans to present Janet L. Yellen Award for Excellence in Community Development - The award is intended to honor former Chair Yellen's commitment to ensuring that the perspectives of consumers and communities informed Federal Reserve research, policy, and action. www.federalreserve.gov/newsevents/pressreleases/other20181130a.htm

November 29, 2018 - Federal Reserve Board releases results of survey of senior financial officers at banks regarding their reserve balance management strategies and practices - The Senior Financial Officer Survey has been used on occasion by the Board to obtain information about deposit pricing and behavior, bank liability management, the provision of financial services, and reserve management strategies and practices. www.federalreserve.gov/newsevents/pressreleases/other20181129a.htm

November 29, 2018 - Federal Reserve announces College Fed Challenge winners - Yale University won the 15th annual national College Fed Challenge on Thursday, a competition that encourages students to learn about the U.S. economy, monetary policymaking, and the role of the Federal Reserve System. www.federalreserve.gov/newsevents/pressreleases/other20181129b.htm

Please don't hesitate to email me (examiner@yennik.com) if you have any questions.  Have a great week,

R. Kinney Williams, President
Certified Financial Examiner
Yennik, Inc.

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