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How to reduce the regulatory burden on community banks

Abrigo

In recent months, the momentum around reducing the regulatory burden on the nation’s community banks has continued to gain steam. However, the regulatory landscape continues to evolve, leaving resource-constrained community banks to cope with new demands. The second idea is community bank exemption from the Volcker Rule.

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How to Choose a Hedge Provider as a Bank

South State Correspondent

Last week we wrote about loan-level vs. balance sheet hedging for community banks and provided our loan proposal generator ( HERE ). We compared and contrasted the two strategies and sized the market for community banks. A community bank may transact one or only a few balance sheet hedges over many years.

How To 195
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Here is the Cost and Risk of Lending Optionality

South State Correspondent

In finance, optionality is an asset (has value) for the person who an exercise the option, while the person who gave the option has the liability. The only time banks can exercise this right is during a credit event. This reduction represents 23% of the average NIM for community banks. First is a declining balance provision.

Lending 195
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Virgin Money Buyout By CYBG Receives All-Clear

PYMNTS

“Today marks an historic milestone for CYBG and Virgin Money , creating the first true national competitor to the status quo in U.K. banking, with a clear ambition to provide customers with the best service in the U.K.,” ” said Duffy in a statement.

Exercises 166
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Will The Fitness Industry’s Digital Shift Stick Once The Pandemic Is Over?

PYMNTS

Americans have a complicated relationship with physical fitness, particularly when it comes to getting enough exercise. There’s nothing like being in a class physically with a community and an instructor. One might assume the firm was perfectly positioned for the rapid shift to home-based exercise. It’s not the same, right?”

Exercises 141
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HUD Issues Final Rule Permitting Private Flood Insurance with FHA Loans

CFPB Monitor

The regulators are the Farm Credit Administration, Federal Deposit Insurance Corporation, Federal Reserve Board, National Credit Union Administration, and Comptroller of the Currency. Prior to the HUD final rule, HUD only accepted flood insurance policies issued under the National Flood Insurance Program (NFIP).

Policies 148
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How the 2022 Stress Test Scenarios Can Help Small Banks & Credit Unions

Abrigo

However, community financial institutions can incorporate the new scenarios for their own stress tests to help determine how their capital levels will fare in severe economic situations. The 2022 stress test scenarios provide a blueprint for community banks and credit unions to get started on their own stress tests.

Capital 195