Banks will have to wait on Fed cut for margins to improve

Banks' margin pain likely to linger given Fed caution: Bankers during recent earnings reports predicted lower deposit costs as 2024 wears on. But with inflation still elevated and the jobs market strong, the Federal Reserve Board probably won't begin lowering rates — and thus easing the drag on lenders' profits — until May at the earliest.

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A painful year looms for issuers of middle-market consumer credit cards: Delinquencies and charge-offs are set to climb over the next several months, as lenders tighten underwriting policies and credit lines while facing downward pressure on late-payment fees.

NCUA's Harper: Large credit unions will report overdraft data. NCUA chair Todd Harper Tuesday revealed plans to mandate separate reporting of overdraft and non-sufficient funds fees for credit unions with over $1 billion in assets, which he said would enhance equity and transparency in fee structures.

Regulators initiate regulatory lookback process: The Federal Reserve, Federal Deposit Insurance Corporation (FDIC) and Office of the Comptroller of the Currency Tuesday issued the first in a series of requests for comment on all aspects of the regulatory apparatus as part of a required decennial review.

Yellen refuses to back banking agencies' Basel play: Treasury Secretary Janet Yellen repeatedly demurred when invited to expound on the Basel III capital proposal, but didn't hold back her criticisms of the U.S. Securities and Exchange Commission 's safeguarding rule and its consequences for banks' custody businesses.

Are you an innovator in the banking or fintech space, or do you know someone who is? American Banker has begun accepting nominations for our 2024 Innovators of the Year award. Click here to learn?how to apply?on your own behalf or on someone else’s. Winners will be honored at the?Digital Banking Conference, June 24-25 in Boca Raton.