OTHER BANKING NEWS
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FCC Proposes Call Authentication Requirement for Non-IP Networks
The Federal Communications Commission has voted to advance a proposal to create a new call authentication requirement designed to limit criminal access to the U.S. calling network.
Current FCC rules require voice service providers to implement the “STIR/SHAKEN” call authentication framework, which requires calls to be signed at origination and attested through the call pathway until the call reaches the recipient. STIR/SHAKEN works only over IP networks, and not over non-IP networks. The proposed rulemaking issued today would require voice service providers that use a non-IP network – that is, a legacy time division multiplexing network – to implement a caller ID authentication framework for that non-IP network within two years.
In a statement, Paul Benda, EVP for risk, fraud and cybersecurity at ABA, applauded the FCC vote, calling it an important step forward in the fight against fraud. “Voice calls that impersonate banks and other legitimate businesses harm consumers and undermine those businesses’ ability to communicate with their customers,” Benda said. “While the FCC has made strides to limit criminal access to the nation’s calling network, bad actors have exploited this gap in our caller ID authentication framework to commit consumer fraud.”
To read more, visit: https://docs.fcc.gov/public/attachments/DOC-411101A1.pdf
Commercial Banks’ Farm Lending Strong into Q1
A recent report from the Federal Reserve Bank of Kansas City says farm lending activity at commercial banks continued to be strong into the first quarter of 2025, while the pace of growth eased slightly.
According to the Kansas City Fed’s Survey of Terms of Lending to Farmers, the volume of farm operating loans increased sharply from a year ago alongside an increase in the number of large loans. Demand for non-real estate agricultural loans has grown over the past year alongside elevated production expenses and a contraction in farm-sector liquidity, Fed economists reported. The growth was recorded during the survey period in early February, ahead of recent distribution of assistance payments from the American Relief Act, which could potentially improve liquidity for some producers, the report said. Economists with the Kansas City Fed cautioned that crop prices are likely to continue weighing on financial conditions in the sector and could keep demand for financing elevated.
The volume of new non-real estate farm loan activity at commercial banks increased about 4% from a year ago. Loans for miscellaneous purposes “remained subdued,” while the volume of loans for key types of farm debt increased considerably more, according to the survey. The increase is largely attributed to loans for operating expenses, which grew by more than 30% for the third consecutive quarter.
The share of new loans larger than $500,000 increased sharply for the second consecutive year, rising to about 3.5% in the first quarter. Interest rates on most types of agricultural loans declined slightly. The average rate charged on non-real estate farm loans dropped on average, by about 30 basis points from the previous quarter. Average rates were around 80 basis points lower than this time last year, but remained above the average of recent decades, according to survey findings.
To read more, visit: https://www.kansascityfed.org/agriculture/agfinance-updates/farm-lending-increases-alongside-larger-operating-loans/
SBA Reinstates Stronger Underwriting Requirements for 7(a) Loans
The Small Business Administration has reinstated stronger underwriting requirements for 7(a) loans through the issuance of a Standard Operating Procedure document.
The 7(a) program is a loan guarantee program designed to encourage lenders to provide loans to small businesses that might not otherwise have access to financing. Under the previous administration, SBA loosened underwriting requirements through a 2023 final rule that many have attributed to the recent rise in default rates for 7(a) loans.
The SOP also reinstated the franchise directory — a resource that assisted 7(a) lenders with determining the eligibility of a franchisee for a 7(a) loan before it was discontinued in 2023. In addition, the SOP restored a requirement that small business borrowers provide a 10% equity injection when the borrower is a startup or when the borrower is purchasing an existing business.
To read more, visit: https://colemanreport.com/wp-content/uploads/2025/04/SOP-50-10-8-effective-6.1.2025-Final.pdf