Bank Policy Institute

BPI released new Morning Consult survey results today that reveal Americans overwhelmingly value the convenience, security and widespread acceptance of debit cards, with many expressing concerns about government interference in fixing prices in private markets. The survey also found that a large majority of consumers believe it is fair for retailers to pay for the goods and services they use to operate, even if doing so cuts into their bottom line. Read the full results: https://lnkd.in/e6KHB2xR

In this edition of BPInsights ??: ?? Where Do Major Rulemakings Stand? Read Highlights From This Week’s Regulator Hearing on Capitol Hill. ?? What Does the Fed’s Supervision and Regulation Report Say About the State of Supervision? ?? The CFPB’s Open Banking Rule Could Break the Data-Sharing System by Attempting Unnecessary Fixes.

A new BPI research paper challenges the FDIC's 2024 proposal to reclassify sweep deposits as brokered deposits, with empirical analysis showing that non-brokered sweep deposits exhibited markedly different risk characteristics from brokered deposits during the March 2023 banking stress period. The findings suggest that maintaining the current regulatory treatment of sweep deposits (established in the 2021 final rule) better reflects their underlying risk characteristics, contrary to the FDIC's proposed changes which are based primarily on anecdotal evidence. https://lnkd.in/dcFFQx49

BPI’s empirical analysis in a new research note casts doubt on the justification for the Federal Deposit Insurance Corporation (FDIC)’s proposal to broaden the definition of brokered deposits. Access the note here: https://lnkd.in/eeDNa6rj BPI also filed a joint letter with the American Bankers Association, U.S. Chamber of Commerce, Financial Services Forum, Financial Technology Association, ICBA and SIFMA late yesterday expressing concerns about legal deficiencies in the proposal. Read it here: https://lnkd.in/eR-k5cWU

Banks solved the issue of consumer data sharing years ago. So, why is the Consumer Financial Protection Bureau stepping in now, with a rule that could make sharing data less safe and secure, asks Greg Baer, of the Bank Policy Institute, in American Banker’s BankThink.https://bit.ly/4fTsRjW

The Federal Reserve’s latest report on supervision and regulation paints a paradoxical picture. While it asserts the banking system is "sound and resilient," it also asserts that two-thirds of large financial institutions were rated less than satisfactory in the first half of 2024 — despite these firms holding 85% of bank assets under Fed supervision. Read the post: https://lnkd.in/e9QpJtdR

The Consumer Financial Protection Bureau’s Section 1033 rule jeopardizes the security and privacy of consumer financial data. Hear from Paige Pidano Paridon, BPI’s Co-Head of Regulatory Affairs, on the shortcomings of this rule and learn more at KeepBankingSafe.com

In this edition of BPInsights ??: ?? How Would the Basel Capital Proposal Affect Consumers’ Spare Credit Cards? ?? What Would Happen If President-Elect Trump Tries to Fire Jerome Powell? ?? Takeaways From the FDIC’s Latest Unbanked and Underbanked Households Survey

The U.S. Basel Endgame proposal would jeopardize consumers’ backup credit cards, threatening a critical source of liquidity for lower-income families. A new BPI research note from Paul Calem, Francisco Covas and Laura Suhr Plassman focuses on two key issues: the practical implications for consumers with multiple cards, and the implications for consumers’ credit scores and access to mortgage credit. Access it here: https://lnkd.in/ejmRBr4x

BPI has announced the hiring of Michael Coyne, a seasoned banking litigator, as a new Senior Fellow and Strategic Litigation Advisor. Mike will start in the position today. Read more: https://lnkd.in/giaa6SVU