ABA Banking Journal Compliance

Multibank MHCs Draw Fresh Attention in Banking

The ABA Banking Journal reports that multibank mutual holding companies (MHCs) are gaining attention as mutual banks seek scale while preserving local identity. Fewer than a dozen exist nationwide per FDIC data, yet recent mergers suggest the model is quietly rising. First Mutual Holding Co. in Lakewood, Ohio, which formed in 2015, now has five mutual banks under its umbrella with $3.3 billion of total assets and has seen combined noninterest expense fall from 3% of assets pre-pandemic to 2.1% today.

FS-ISAC Sector Risk Advisory on Hardening Cybersecurity Against AI Threats

FS-ISAC published a sector risk advisory with nine recommendations for financial sector organizations on managing cybersecurity and resilience risks from threat actors using artificial intelligence to identify and exploit vulnerabilities. The advisory notes that traditional assumptions and approaches for vulnerability management no longer hold in the face of AI-enabled vulnerability discovery. Recommendations include aggressively remedying known risks and hardening cybersecurity perimeters.

OFAC Extends Temporary Waiver for Russian Oil Sanctions Through May 16

The Office of Foreign Assets Control reauthorized Russian oil exports through May 16, 2026, extending a temporary waiver that had expired on April 11. The extension was issued to ease economic pressure from rising fuel prices linked to military operations in Iran. The sanctions were originally imposed in 2022 to penalize Russia for its invasion of Ukraine.

Nebraska Law Targets Social Media Fraud, Protects Older Adults

Nebraska lawmakers passed legislation requiring social media platforms to detect and remove fraudulent advertising. The law, championed by the Nebraska Bankers Association with support from the American Bankers Association, requires platforms to verify advertiser identity, investigate user fraud claims, and remove fraudulent ads within five business days. A similar federal SCAM Act has been introduced in both chambers.

ABA Supports OCC Supervisory Appeals Reform Proposal

The American Bankers Association submitted comments to the Office of the Comptroller of the Currency supporting its February 2026 proposed rule to reform the supervisory appeals process. The OCC proposal would create a new independent board to review appeals and establish a de novo standard of review that does not defer to previous decisions. ABA recommended staffing the appeals board with independent, term appointees and establishing due-process protocols if the comptroller overturns any appeals board decision.

OFAC Counterterrorism, Russia, Nicaragua, Iraq, Iran, Sudan Sanctions Actions April 20

The ABA Banking Journal Compliance summary reports OFAC sanctions actions issued April 20, 2026, including counterterrorism and Russia-related general licenses (GTLs 35, 128C, 130A), Nicaragua gold sector designations targeting five individuals and seven companies tied to the Ortega-Murillo regime, seven Iraqi militia commanders aligned with Iran under Executive Order 13224, over two dozen individuals and entities in Iran's illicit oil shipping network, and five individuals and entities recruiting Colombian fighters for Sudan's Rapid Support Forces. All actions were taken under various executive orders targeting counterterrorism, corruption, and human rights abuses.

FHLBs Propose Allowing Letters of Credit for Fed Discount Window Advances

The Council of Federal Home Loan Banks sent a letter to FHFA Director Bill Pulte on April 10, 2026, proposing that FHLB members be allowed to use short-term FHLB letters of credit to secure advances through the Federal Reserve's discount window. The proposal would allow institutions to borrow promptly at the discount window while underlying collateral transfer processes are being prepared. The council described this as a bridge mechanism designed for periods of stress, including weekends and off-hours, when timing and valuation challenges are most acute.

ABA Asks Seventh Circuit to Block Illinois Interchange Fee Ban Before July 1

The American Bankers Association and Illinois Bankers Association have asked the Seventh Circuit Court of Appeals to reverse a district court decision and issue an injunction blocking Illinois Interchange Fee Prohibition Act enforcement before the July 1 effective date. The Illinois law bans banks and payment networks from charging or receiving interchange fees on the tax or gratuity portion of card transactions. OCC has filed an interim final rule titled 'National Bank Non-Interest Charges and Fees' related to national banks' authority to charge interchange fees under the National Bank Act.

RCC Preview: Flipping the Script on Traditional Tech Risk in Banking

The ABA Banking Journal published an article previewing a keynote presentation by Reid Sawyer of Marsh at the ABA Risk and Compliance Conference. The article discusses how technology risk in banking increasingly defies traditional risk definitions and compliance approaches. Sawyer argues that technology risk should be elevated to enterprise- and board-level conversations and that banks must rethink how they categorize, govern, and escalate technology-related risks, particularly as AI deployment accelerates across the industry.

Fed, FDIC, OCC Revise Risk Management Model Guidance

The Federal Reserve, FDIC, and Office of the Comptroller of the Currency have rescinded existing interagency model risk management guidance and replaced it with revised principles that better account for a financial institution's size and complexity. The new guidance clarifies that model risk management should be tailored commensurately to the size, complexity, and model risk profile of a banking organization, with expanded coverage of third-party and vendor products. The agencies explicitly stated that the guidance does not establish enforceable standards, prescriptive requirements, and non-compliance will not result in supervisory criticism.

ABA Supports CFPB's Deregulatory Plan to Reverse Regulatory Overreach

The American Bankers Association submitted a letter supporting the Consumer Financial Protection Bureau's draft strategic plan for FY 2026-2030, which focuses on reversing regulatory overreach and reducing unnecessary regulatory burdens. ABA expressed support for transparent rulemaking, acting within clear statutory authority, improving the consumer complaint database, and prioritizing consumer fraud education, while urging the bureau to maintain robust supervision of nondepository financial service providers.

ABA Letter Requests CECL Relief for Community Banks

The American Bankers Association sent a letter to the Financial Accounting Standards Board regarding post-implementation issues with the Current Expected Credit Loss (CECL) accounting standard. ABA emphasized that for community banks, CECL implementation costs far outweigh the benefits, citing significant recurring costs for model validation, documentation of qualitative analysis, and other operational burdens. ABA called on FASB, regulators, and auditors to work with community bankers to reduce costs and expand the use of external information for more efficient credit loss estimates.

ABA DataBank: Workplace Use of Generative AI

The ABA DataBank published an article examining the uneven adoption of generative AI across the banking workforce, based on survey data tracking AI usage patterns among ABA member institutions.

ABA Supports Executive Orders Rolling Back Mortgage Regulations

The American Bankers Association announced support for two executive orders directing the Consumer Financial Protection Bureau and bank regulators to reduce mortgage regulatory burdens, promote lender competition, lower borrowing costs, and better tailor rules for community banks. Separately, Fannie Mae and Freddie Mac announced eased property insurance requirements in response to rising insurance costs, accepting actual cash value coverage on roofs for single-family homes and condominiums. ABA had previously joined MBA and Housing Policy Council in urging FHFA to rescind difficult property insurance requirements introduced earlier in 2024.

ABA Urges Policymakers to Avoid FCRA Changes That Reduce Credit Availability

The American Bankers Association submitted testimony to the House Financial Institutions Subcommittee urging policymakers to avoid Fair Credit Reporting Act changes that could restrict credit availability. ABA representative Veneshia Ferdinand testified that banks are key participants in the credit reporting ecosystem and that policy changes should maintain data accuracy and avoid unnecessary complexity. The ABA emphasized that clear, consistent rules and realistic implementation timelines are essential for effective consumer protection.

Senate Democrats Seek Delay of Kevin Warsh Nomination

The eleven Democratic members of the Senate Banking Committee called on Chairman Tim Scott (R-N.C.) to delay the nomination hearing for Kevin Warsh to be Federal Reserve chairman until the Trump administration drops investigations into current Chairman Jerome Powell and Governor Lisa Cook. The committee scheduled the Warsh hearing for April 21, 2026. Democrats cited concerns about President Trump's involvement in directing criminal investigations against sitting Fed board members.

Weak Fundamentals Primary Driver of Bank Failures

The ABA Banking Journal reports on a Federal Reserve and MIT economists study examining over 5,000 bank failures across 150+ years of U.S. data. The research found that weak fundamentals—declining income, low capitalization, rising asset losses, and reliance on expensive funding—are the primary drivers of bank failures, with rapid asset growth from aggressive lending identified as a common precursor. Bank runs were found to accelerate failures but not initiate them; strong banks typically survive runs through mechanisms like interbank lending.

Industrial Production Fell 0.5% in March

The Federal Reserve reported that U.S. industrial production dropped 0.5% in March 2026 from the previous month. The March figure was up 2.4% from a year prior. Manufacturing declined 0.1%, mining fell 1.2%, and utility output slipped 2.3%.

30-Year Fixed Mortgage at 6.30%, 15-Year at 5.65%

Freddie Mac reported that the 30-year fixed-rate mortgage declined to 6.30% this week, down from 6.37% the prior week and 6.83% a year ago. The 15-year fixed-rate mortgage fell to 5.65%, down from 5.74% the prior week and 6.03% a year ago. This ABA Banking Journal article reports market rate data without creating compliance obligations.

Building Trust in Rural Banking: Tom Ogaard, NAB President and ABA Government Relations Council Chair

The ABA Banking Journal published a profile of Tom Ogaard, president and CEO of Native American Bank (NAB) and chair of the ABA's Government Relations Council. NAB is a $400-million-asset community financial development institution serving rural Native American communities across Colorado, Montana, and Washington state. Ogaard discusses the bank's focus on face-to-face relationship building to overcome distrust in Native communities and the challenges of serving geographically dispersed populations.

ABA Foundation Testifies on Protecting Older Americans from Financial Exploitation

The ABA Foundation provided testimony on protecting older Americans from financial exploitation. The testimony addressed safeguards and recommendations for banks serving senior customers facing fraud risks. This represents an industry association's policy advocacy rather than a binding regulatory requirement.

OFAC Sanctions Iranian Network, Eases Mexican Bank Dissolution

The US Treasury's Office of Foreign Assets Control (OFAC) has sanctioned an Iranian network and eased requirements related to the orderly dissolution of a Mexican bank. These actions affect financial institutions with international operations, requiring review of sanctions compliance programs and correspondent banking relationships. The sanctions designation and regulatory modification represent concurrent developments in Treasury's enforcement approach.

FinCEN Rapid Response Intercepts $2B for Cybercrime Victims

FinCEN's Rapid Response Program (RRP) has intercepted approximately $2 billion in funds linked to cyber-enabled crime. The program coordinates with financial institutions and law enforcement to freeze compromised accounts and recover stolen funds before they leave the financial system. The RRP leverages Bank Secrecy Act reporting infrastructure to enable rapid information sharing and response.

OCC Ends CFPB Headquarters Lease Six Years Early

The Office of the Comptroller of the Currency (OCC) has terminated the Consumer Financial Protection Bureau (CFPB) headquarters lease six years ahead of its scheduled expiration. The administrative action affects federal real estate holdings in Washington, D.C. No compliance obligations or regulatory requirements for financial institutions are associated with this real estate transaction.

Forty-three Senators Seek $324M for CDFI Fund

Forty-three senators sent a letter to Senate appropriators requesting at least $324 million for the Community Development Financial Institutions Fund in fiscal year 2026. The CDFI Fund, administered by the Treasury Department, provides financial assistance and technical support to community development lenders, banks, credit unions, and venture capital funds serving underserved communities.

Beige Book: Economic Activity Mixed Across Fed Districts

The ABA Banking Journal summarizes the Federal Reserve's Beige Book report on current economic conditions across the 12 Federal Reserve Districts. The latest report indicates economic activity was somewhat mixed, with varying conditions reported across different sectors and regions. The Beige Book aggregates qualitative information from Beige Book contacts and other sources to inform monetary policy decisions.

Homebuilder Confidence Drops Four Points

The National Association of Home Builders (NAHB)/Wells Fargo Housing Market Index fell four points to 42 in April 2026. This decline reflects continued weakness in the housing market, with current sales conditions, traffic of prospective buyers, and single-family housing starts all contributing to the downward trend.

Producer Price Index Rises 0.5% in March

The ABA Banking Journal reports that the Producer Price Index rose 0.5% in March, according to Bureau of Labor Statistics data. This economic indicator measures changes in the prices received by domestic producers for their goods and services over time. The article provides market context for banking professionals monitoring economic conditions.

Banks Should Maximize Existing Data Over Collecting More

ABA Banking Journal published an article advising banks to maximize existing data assets for marketing effectiveness rather than investing in additional data collection. The article discusses data utilization strategies for banking institutions. No regulatory action or new compliance requirements are imposed.

Kevin Warsh Fed Chair Hearing Scheduled April 21st

The ABA Banking Journal reports that Kevin Warsh's nomination hearing for Federal Reserve Chair is scheduled for April 21st. The Senate Banking Committee will consider Warsh's nomination to lead the central bank. This hearing represents a significant step in the confirmation process for Fed leadership.

Community Banker Trey Maust Named FDIC Chief Innovation Officer

Trey Maust, a community banker, has been named FDIC Chief Innovation Officer. The appointment brings industry experience to the position overseeing technology and innovation initiatives at the federal banking regulator. No new regulatory obligations or compliance requirements are created by this staffing announcement.

Small Business Optimism Index Drops to 95.8 in March

The National Federation of Independent Business (NFIB) released its Small Business Optimism Index for March, declining to 95.8. The index reflects uncertainty among small businesses, with components showing mixed readings on capital spending, inventory, and sales expectations.

Texas, Kansas Bank Acquisitions Totaling $521M Announced

ABA Banking Journal reports announced bank acquisitions in Texas and Kansas totaling $521 million. The transactions involve commercial banking institutions in these states. No regulatory approvals, compliance obligations, or penalties are mentioned in the source.

Bank Branches Redesign for Wealth Management Client Privacy

ABA Banking Journal published an article on designing bank branch spaces to accommodate wealth management client privacy needs. The article discusses physical design considerations for financial institutions seeking to serve high-net-worth clients while maintaining confidentiality. No new regulatory requirements or compliance obligations are established by this publication.

ABA Urges NCUA to Pause Stablecoin Framework

The American Bankers Association (ABA) has submitted comments to the National Credit Union Administration (NCUA) urging the agency to pause its stablecoin framework development. ABA expressed concerns about the regulatory approach and requested additional time for industry input before moving forward with stablecoin-related rulemaking affecting credit unions. The trade group represents banks and is weighing in on how credit unions should be regulated regarding digital assets.

OFAC Russia Oil Sanctions Exemption Expires April 11

The ABA Banking Journal reports that the OFAC general license exemption for Russia-related oil sanctions is set to expire on April 11. This exemption has allowed certain transactions involving Russian oil to continue under specific conditions. Financial institutions and energy sector participants should monitor OFAC guidance for any extensions or termination of this authorization.

ABA State Associations Endorse SCAM Act to Reduce Consumer Fraud Losses

ABA state associations have endorsed the SCAM Act, legislation designed to reduce consumer fraud losses. The trade association support comes as the bill moves through the legislative process. The article reports on this endorsement but does not create any compliance obligations.

Existing Home Sales Down 3.6%, Affordability Cited

The American Bankers Association reported that existing home sales fell 3.6% in March compared to the prior month, reaching a seasonally adjusted annual rate of approximately 4 million units. Affordability constraints were cited as a key factor limiting buyer activity in the housing market.

FinCEN 314(a) Updates Jan-Mar 2026

The ABA Banking Journal Compliance published a summary of FinCEN Section 314(a) information requests on terrorism and money laundering for Q1 2026 (January through March). Financial institutions should review the updated list of subjects and maintain compliance with related reporting obligations.

OFAC Russia, Venezuela Sanctions Guidance Update

The American Bankers Association reports on recent guidance updates from the U.S. Department of the Treasury's Office of Foreign Assets Control regarding Russia and Venezuela sanctions programs. The article covers developments affecting banks and financial institutions subject to OFAC sanctions regulations. No specific compliance deadlines or penalty amounts are stated in the source.

Hiring Incentives, Employee Deposit Rates Prohibited

The ABA Banking Journal's Compliance Question of the Month addresses whether banks may offer hiring incentives tied to employee deposit rates. The column clarifies that such practices are prohibited under federal banking regulations governing deposit-taking activities.

Critique of CEA Stablecoin Research on Banks

The ABA Banking Journal published an analytical critique of research conducted by the Congressional Budget Office (CEA) examining stablecoin yield and its implications for community banks. The article questions whether the CEA studied the appropriate framework or relevant market dynamics in its analysis of stablecoin returns for smaller banking institutions.

88% of Leading Banks Deploy Data Solutions, 67% Push Marketing

The American Bankers Association published a survey reporting that 88% of leading banks have deployed financial data solutions for customer engagement, while 67% leverage these insights for marketing purposes. The survey examines how banks are using financial data insights to enhance customer engagement strategies.

ABA Urges CFPB to Revert 2023 Credit Card Plan Survey Changes

The American Bankers Association (ABA) has formally urged the Consumer Financial Protection Bureau (CFPB) to revert changes made to its 2023 credit card plan survey methodology. The ABA's recommendation seeks to restore prior survey parameters for assessing credit card issuer practices and compliance. The CFPB's survey is used to inform regulatory oversight of credit card issuers.

Four in Ten US Adults Report Fraud Victimization

The ABA Banking Journal reported on an AARP survey finding that approximately 40% of US adults report being victims of fraud. The survey highlights widespread consumer concern about financial scams and fraud schemes targeting Americans across demographic groups.

March CPI Reaches 3.3%, Gasoline Prices Surge 21.2%

The ABA Banking Journal reports that the Consumer Price Index for March reached 3.3%, reflecting a re-acceleration driven by a 21.2% surge in gasoline prices. This economic data is published in the ABA Databank section as part of routine economic indicator tracking for the banking industry.

ABA Recommends Rescinding SEC Item 106 Cybersecurity Disclosure Rule

The American Bankers Association submitted comments to the SEC recommending rescission of Item 106 cybersecurity disclosure requirements applicable to public companies. The ABA's comment letter addresses cybersecurity incident disclosure obligations and suggests revising the current SEC framework for how banks and other public companies must disclose material cybersecurity incidents.

FDIC Rescinds 2023 Representment NSF Fee Letter

The FDIC has withdrawn its 2023 informal guidance on representment nonsufficient funds (NSF) fees. The rescission removes a prior supervisory expectation regarding how banks assess representment fees on returned transactions. Banks previously adhering to the 2023 guidance may now have increased flexibility in their fee assessment practices.

Factory Orders Steady at $620.1B in February

ABA Banking Journal reports that U.S. factory orders held steady at $620.1 billion in February. This economic indicator provides macroeconomic data for banking compliance professionals monitoring industrial activity. No regulatory actions, compliance obligations, or deadlines are associated with this report.

ABA Releases Latest Banking Industry DataBank Statistics

The American Bankers Association released the latest DataBank statistics for the banking industry, providing comparative data on bank financial and operational metrics. The release offers banks benchmark data across various banking performance indicators. No regulatory compliance obligations are imposed by this statistical release.