On October 31, 2018 the Federal Reserve (the “Fed”) announced a proposal for looser capital and liquidity requirements for some U.S. banks. This announcement is in line with the latest moves to reduce regulatory burdens on community and regional financial institutions, but marks one of the most significant rollbacks of bank regulations since the Trump administration took office. The proposed changes will divide big banks into four categories based on their size and other risk factors. The proposal will generally affect large U.S. lenders, yet leave some of the largest banks untouched.
In a recent effort to strengthen the money-laundering defenses across the U.S. financial system, small banks and credit unions are being given the option to pool their resources. In a statement issued by the federal depository institutions regulators and the U.S. Department of the Treasury’s Financial Crimes Enforcement Network (FinCEN) the federal regulators detail that certain banks and credit unions can enter into collaborative agreements to pool resources for anti-money-laundering compliance purposes. The new regulation will help smaller community banks address the risk of financial crime while keeping the costs low and ultimately help prevent money-laundering.
A provision within the new tax overhaul is emerging as a leading concern for the property and casualty insurance sector. The industry recently experienced growing uncertainties about how a vaguely worded provision within the Base Erosion and Anti-Abuse Tax (BEAT) may affect their bottom line. However, the insurance industry is not the only group that may experience these unintentional ramifications; consumers and small businesses are also likely to see an increase in their premiums due to implications of BEAT.