Fed restricts banks' payouts as stress tests reveal vulnerabilities
The Federal Reserve last week moved to ensure banks remain strong enough to maintain lending throughout the coronavirus pandemic by restricting shareholder payouts and capping dividend payments. The actions follow the release of 2020 stress test results and additional sensitivity analyses amid the national emergency.
The Fed's actions include:
- requiring banks to re-evaluate their longer-term capital plans;
- resubmitting and reupdating large banks' capital plans later this year to reflect current stresses, which will help institutions reassess their capital needs and maintain strong capital planning practices during this period of uncertainty; and
- conducting additional analysis by the Fed each quarter to determine if adjustments to capital plans are appropriate.
Fed Vice Chair for Supervision Randal Quarles noted that while the banking system remains well capitalized, the agency is assessing conditions more intensively and requiring banks to adopt prudent measures to preserve capital amid the uncertainty of economic recovery.
Fed Governor Lael Brainard cautioned against weakening banks' capital buffers, as "strong capital buffers associated with Dodd-Frank reforms have enabled banks to play a constructive role in responding to the COVID-19 pandemic."
NAFCU will continue to monitor economic conditions amid the coronavirus pandemic to ensure credit unions and their members remain financially stable. See more of the association's economic analyses here.
Add to Calendar 2020-12-04 14:00:00 2020-12-04 14:00:00 Give Your Members the Gift of Fraud Protection for the Holidays The holiday season will look different this year for a lot of reasons. But one that many credit unions are gearing up for is new fraud attacks. Digital fraud and scams will potentially be worse than ever before, with the increase in digital shopping, and the commencement of holiday sales and black Friday deals. In order for you and your members to enjoy this season, you’ll want to be aware and prepared. So, we’re talking with Ann Davidson, Vice President of Risk Consulting at Allied Solutions, about how to get out ahead of these risks with key prevention methods and education for members. PROGRAM UNDERWRITTEN BY Key Takeaways What new forms of fraud should your credit union be prepared for this holiday season? How has this changed from previous years, given the pandemic’s impact? What can your credit union do to mitigate these risks? Register Now For On-Demand AccessRegistration is complimentary, but you must register to attend.One registration gives your entire credit union access to the on-demand recording until December 4, 2021.Already registered? Go to the Online Training Center to view live. Who Should Attend? NAFCU Certified Risk Managers (NCRMs) NAFCU Certified Compliance Officers (NCCOs) NAFCU Certified Bank Secrecy Officers (NCBSOs) Compliance staff BSA staff Risk staff Education Credits NCRMs will receive 1.5 CEUs for participating in this webinar. NCCOs will receive 1.5 CEUs for participating in this webinar. NCBSOs will receive 1.5 CEUs for participating in this webinar. CPA credit information is below; recommended 1.5 CPE credits. CPA Certification Credit Information Reviewer: Josie Collins, Associate Director of Education, NAFCU Learning Objectives: What new forms of fraud should your credit union be prepared for this holiday season? How has this changed from previous years, given the pandemic’s impact? What can your credit union do to mitigate these risks? Program Level: Basic Prerequisites Needed: None Advance Preparation Needed: None Delivery Method: Group Internet-Based Recommended CPE Credits: 1.5 credits Recommended Field of Study: Regulatory Ethics – Technical National Association of Federal Credit Unions (NAFCU) is registered with the National Association of State Boards of Accountancy (NASBA) as a sponsor of continuing professional education on the National Registry of CPE Sponsors. Learn more. About Our Webinars Our webinars are streamed live from NAFCU headquarters near Washington, D.C. Your audio/video feed of the presenters includes presentation slides and downloadable handouts. You can easily submit your questions to the presenters at any time during the live broadcast, with no dialing over the phone! The audio and video stream directly through your computer. Web NAFCU firstname.lastname@example.org America/New_York public
Credits: NCRM, NCCO, NCBSO, CPE
Program underwritten by NAFCU Services
Add to Calendar 2020-12-02 09:00:00 2020-12-02 09:00:00 The Evolving Credit Crisis- How Credit Unions Can Respond Now Listen On: Key Takeaways: [03:32] Banks are reporting minimum increases in the things you would expect to see as warning signs like charge-off rates and delinquency rates. [11:20] Sophisticated modeling techniques are models that are built from lots of historical information, can tie variables together, and anticipate credit losses. [17:29] The credit unions that have a good understanding of their membership, markets, loan portfolios, and the ability to get some insight into those analytics may see some opportunities to expand into other product types. Web NAFCU email@example.com America/New_York public
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