Treasury Prime’s Post

Talking Big Banks and Basel; Yellen’s Plea for FSOC; Fintechs Fear Regulatory Onslaught In this weekly review of Capitol Account's news coverage, the team of Robert Schmidt, Co-founder, and Reporters Jessica Holzer and Ryan Tracy provide their usual rundown of the top stories coming from Washington, D.C., including a Q&A with lobby head Kevin Fromer, president of the Financial Services Forum, to discuss the Basel endgame and other banking issues. Plus, U.S. Department of the Treasury Secretary Janet Yellen's speech on the need to keep the Financial Stability Oversight Council vibrant, and elsewhere, the question from fintechs once again rears its head: Is regulation stifling innovation? #baselendgame #bigbanks #financialregulation #fintech https://lnkd.in/dnpRZrS4

Talking Big Banks and Basel; Yellen’s Plea for FSOC; Fintechs Fear Regulatory Onslaught In this weekly review of Capitol Account's news coverage, the team of Robert Schmidt, Co-founder, and Reporters Jessica Holzer and Ryan Tracy provide their usual rundown of the top stories coming from Washington, D.C., including a Q&A with lobby head Kevin Fromer, president of the Financial Services Forum, to discuss the Basel endgame and other banking issues. Plus, U.S. Department of the Treasury Secretary Janet Yellen's speech on the need to keep the Financial Stability Oversight Council vibrant, and elsewhere, the question from fintechs once again rears its head: Is regulation stifling innovation? #baselendgame #bigbanks #financialregulation #fintech https://lnkd.in/dnpRZrS4

Great read on the dilemma facing #communitybanks which then also impacts #fintech #banking and at the end of the day, consumers & businesses around the country Thanks for sharing Dub Sutherland #bankingnews #fintechnews #financialservices

The Bank of England and HM Treasury have published a response to their 2023 consultation on #digitalpound. The latest proposals envisage that private sector wallet providers will be subject to a robust regulatory framework and play a key role in protecting users’ privacy. Read our latest FintechLinks article to learn more about key takeaways and what happens next. #cbdc #digitalpound #fintech #finreg

With FedNow approaching the one year market, The Federal Reserve and The Clearing House talk about what's different and what needs to change in a new American Banker analysis. 

It's a long read but very interesting. From my perspective, there is a need to bring capital requirements to an appropriate and consistent level. As mentioned, the US has been one of the most competitive markets, and without accommodation from the regulator, it could go too far and cause damage to itself. I love the emotion of the BASEL Endgame; very creative! It will be interesting to see how the regulations/rules/levels soften and whether this was all part of the negotiating position to go too far, knowing that coming back will get to the originally desired levels. What do you think? #Banking #Capital #BASEL #BASELENDGAME #DBTB

Themis is doing it again! We are excited to host the 3rd Banker's Led Forum on Sunday, October 27 at 2p ET in Las Vegas (it is during Money 20/20 so you have another reason to come). We are almost at capacity! Note: This event is only for banks and run by banks - no vendors, no fintechs (we don't even participate in the discussion). Our intimate gathering will feature senior executives from over 40+ leading banks in the BaaS industry, with the goal of discussing the most pressing issues facing our industry and setting the path forward for how banks + fintechs can thrive together. There will be a lot to discuss and share so you don't want to miss it : ) Register here if you are bank partnering with fintechs https://lnkd.in/enXh_Ezf (we are almost at capacity, so please try to limit 2 members per bank) 100 Participants including: - CEOs / CIOs / Execs - Head of BaaS / Fintechs - Risk & Compliance Professionals With the recent turbulence and in the BaaS market, it is clear what's needed is increased dialogue and collaboration across the bank community. Innovation and regulation in this area needs to be led by the participants! * This event would not have been pulled off without the help from Dana Lawrence and Kirsten Muetzel, CPA and our friends in the BaaS Community - nbkc bank FinWise Bank Hatch Bank Continental Bank Valley Bank Pacific West Bank an Oregon Banking Corporation National Capital Bank Piermont Bank Customers Bank Coastal Community Bank First Bank of the Lake OMB Bank Emprise Bank and so many others to name! Thank you all for your continued support! The Setup: - Raw Discussions - Leader to Leader dialogue - No Vendors or Fintechs (including us) - Balanced approach to regulation vs. innovation

This week will mark the one-year anniversary of The Federal Reserve's FedNow real-time payment network. Real-time payments are at the core of the swiftly evolving payment landscape across B2C and B2B payments. While instant payments are transforming the sector through quicker settlement times, heightened efficiency, and more effective financial management, FedNow's next challenge will soon lie in attaining significant cross-border volume in the future. #Capgemini

AC Hsu's speech is tour de force level in terms of zeroing in on a very wide-ranging set of critical policy initiatives facing the banking system, fintech partnerships, and giving a heads up on the potential fate for the OCC preemption rules following the DFA. Look for: -- a number of important policy initiatives underway for the largest banks (capital, liquidity, operational resilience, and recovery planning), noting their continued growth trends (with a nod to "simple, dispassionate math"). -- the importance of additional granularity on approaches and engagement between FBAs and nonbanks and a first-time reference to Synapse/Evolve. AC Hsu revisits his frustration with increasing gaps between state money transmitter licensing and federal bank oversight, noting the need for prudential supervision of MSBs at the federal level and calling (again) for tailored federal payments regulation and supervision. --OCC history on the "wildcat banks" (with a visual to boot; not lost on this nerd). But what's superinteresting: "Increasingly banks are being asked by states to pick a side in service of performative politics rather than deliberative policy." **Cue national bank preemption and the live issue (post-Cantero and post-Loper Bright) on the fate of the OCC's preemption rules.** --> "We must fortify and vigorously defend core preemption, and we must embrace and develop more nuanced analysis when applying Barnett..." "Preemption [regarding safety and soundness and compliance with federal laws and regulations] is legally absolute and non-negotiable, and the OCC will act accordingly to defend that." "We need to develop a more nuanced and balanced approach to Barnett..." Kudos to Dan Awrey who is footnoted and has thought so deeply on banking and payments issues. More on some of these points in a future post. #payments #fintech #bankreg

As community banks and credit unions strive to compete with larger institutions, they're turning to innovative digital solutions like Q2. In this Forbes article, hear how Q2 is serving Stanford Federal Credit Union, VeraBank, Forbright Bank, and many other community financial institutions with technology to build personal customer experiences and stay competitive. https://bit.ly/3LHR1Rc