Regulations & Policy
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Courtesy of Kabbage Media
Kabbage finds partner bank for SBA loans, awaits guidance to become direct lender
The online lender, which has been lobbying Congress to help with the SBA's loan program since the start of the coronavirus crisis, has had to retool its business model because of the pandemic.
By Anna Hrushka • April 08, 2020 -
Mnuchin seeks extra $250B for SBA loans as AML rules, access issues slow aid
The application process has been fraught with delays, including a four-hour outage to the agency's loan processing system Monday and the need to comply with anti-money laundering regulations.
By Dan Ennis • April 08, 2020 -
Fifth Third hiring 950 employees amid higher loan, mortgage demand
The Cincinnati-based bank joins Bank of America in boosting its headcount during the coronavirus outbreak.
By Dan Ennis • April 07, 2020 -
Fed alters Wells Fargo's asset cap to continue support of SBA loans
Lifting the cap, instituted after a 2016 fake-accounts scandal, would help the bank lend to more small businesses affected in the coronavirus pandemic, CEO Charlie Scharf has argued.
By Anna Hrushka • UPDATED: April 8, 2020 at 12:29 p.m. -
Wells Fargo cites asset cap in closing SBA loan portal
The bank said it would lend up to $10 billion as part of the U.S. government's coronavirus relief program but estimated it had hit that ceiling two days after the effort launched.
By Anna Hrushka • April 06, 2020 -
Daphne Howland/Banking Dive
West Virginia's First State Bank closes in 2nd failure of 2020
The FDIC blamed "longstanding capital and asset quality issues" for the closing. MVB Bank assumed all $139.5 million of First State’s deposits and $147.2 million of its assets.
By Dan Ennis • April 06, 2020 -
Chime delivers some customers their stimulus checks early
The San Francisco-based digital bank is providing the cash to 1,000 randomly selected users through its no-fee SpotMe feature, which allows users to overdraft on their accounts.
By Anna Hrushka • April 03, 2020 -
Courtesy of Kabbage Media
Kabbage cuts credit to small businesses, shifts focus to SBA loans
The online lender is dealing with the loss of loan origination revenue, as well as losses on the performance of existing loans as the coronavirus pandemic brings the economy to a near standstill.
By Anna Hrushka • UPDATED: April 2, 2020 at 5:36 p.m. -
North Carolina de novo organizers buy bank in Tennessee
Community Bank of the Carolinas failed to raise enough money to open, but its investors found a path forward in Brighton Bank.
By Dan Ennis • March 31, 2020 -
Getty Images
Banks, fintechs prepare for flood of SBA loan applications
As small businesses across the country shutter amid the pandemic, many fintech lenders are concerned traditional lenders won't be able to process loans quickly enough to get business owners the cash they need.
By Anna Hrushka • March 31, 2020 -
BofA CEO: Capital levels allow us to focus on operations amid crisis
"It’s much different than walking down 6th Avenue in 2007-08 and being worried about risk," said Brian Moynihan. "Now it’s much more about how do we operationalize and help the economy get back on its feet?"
By Anna Hrushka • March 30, 2020 -
Regulators give banks a 2-year break on CECL
Friday's rule change is not mandatory. Banks can continue to use guidance from February 2019 that lets them phase in the accounting standard's day-one impact over three years.
By Dan Ennis • March 30, 2020 -
Fotolia
Regulators urge banks to offer responsible small-dollar loans
Five agencies promise future guidance on the lending vehicle, which some trade groups advocated long before the coronavirus pandemic sent the economy into a spiral.
By Anna Hrushka • March 27, 2020 -
Fintech lenders find an opening in $2T coronavirus relief package
"The language does include opportunity for fintechs to support, but it's now up to the Treasury to finalize the definition," said Kabbage's Sam Taussig. "This is not the time to debate the definition of a bank."
By Anna Hrushka • March 26, 2020 -
Fed temporarily curbs exams for banks with less than $100B
Big banks are still expected to submit their capital plans by April 6, but some in the industry argue the coronavirus creates a scenario worse than the stress test's most dire, making it irrelevant.
By Dan Ennis • March 25, 2020 -
Unbanked would get digital accounts for virus relief under Senate bill
Legislation is aimed at giving more than 8 million U.S. households — and even more underbanked Americans — access to outbreak-related stimulus checks.
By Anna Hrushka • March 25, 2020 -
Rakuten withdraws ILC application, intends to refile
The move comes less than a week after the FDIC approved applications for Square and Nelnet. But trade groups and some lawmakers still voice concern about the business model.
By Dan Ennis • March 24, 2020 -
Regulators ease loan modification rules amid coronavirus pandemic
Examiners will exercise judgment in reviewing loan modifications, including troubled debt restructurings, according to a joint statement by five agencies and an organization of state regulators.
By Anna Hrushka • March 23, 2020 -
Wells Fargo asks Fed to lift asset cap
Adding deposits or loans may be one way the nation's fourth-largest bank could help businesses and customers hit hard by the coronavirus outbreak.
By Dan Ennis • March 23, 2020 -
Getty Images
Kabbage asks Congress to retool SBA's lending rules amid coronavirus crisis
The online lender wants private-sector partners to help the agency with its disaster loan program as it faces a potential flood of small businesses in need of cash.
By Anna Hrushka • March 20, 2020 -
FDIC approves ILC charters for Square, Nelnet
The recent approvals are bound to usher in more scrutiny from the banking establishment, which has called the industrial loan company model's lack of oversight a consumer safety issue.
By Anna Hrushka • March 19, 2020 -
Courtesy of Wells Fargo multimedia resources
Wells Fargo cancels ex-CEO Sloan's $15M bonus
The bank considered the timing of Sloan's resignation, the company's performance and the status of its risk management objectives and outstanding regulatory matters in its decision, according to a proxy filing.
By Dan Ennis • March 18, 2020 -
National Park Service. (N/A). "First bank of the United States" [Photo]. Retrieved from https://www.nps.gov/inde/learn/historyculture/places-firstbank.htm.
Regulators weigh easing more bank rules as markets stay jittery
A spate of initiatives, some released and some under consideration, are intended to keep credit flowing to businesses hard hit by the novel coronavirus outbreak.
By Robert Freedman • March 18, 2020 -
Banks tap Fed discount window to signal readiness on credit
The biggest U.S. banks have been cooperating with each other and with the Federal Reserve to show they'll keep people and companies liquid as the economy worsens.
By Robert Freedman • March 17, 2020 -
Kendall Davis/Banking Dive
The novel coronavirus impact on the banking industry
The banking industry is central to the global economy's stability. Follow Banking Dive's coverage of the pandemic here.
