OTHER BANKING NEWS
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Banking Net Income $69.9 Billion In Q2 2025
The banking industry reported a return on assets ratio of 1.13% and aggregate net income of $69.9 billion in the second quarter of 2025, a decrease of $677.3 million, or 1%, from the prior quarter, according to the FDIC’s most recent Quarterly Banking Profile. Net income for the industry would have increased in Q2 absent an increase in provision expenses related to Capital One’s acquisition of Discover earlier this year.
Quarterly net income for the 3,982 community banks insured by the FDIC totaled $7.6 billion in Q2, an increase of $842.9 million, or 12.5%, from Q1, the agency said. Higher net interest income and noninterest income more than offset increases in noninterest expense and provision expense.
Domestic deposits increased $101.5 billion, or 0.6%, from Q1, rising for a fourth consecutive quarter. Estimated uninsured domestic deposits increased $186.4 billion, or 2.4 %, offsetting a $87.3 billion, 0.8%, decline in insured domestic deposits.
The Deposit Insurance Fund balance increased $4.4 billion to $145.3 billion in Q1. The reserve ratio increased five basis points during the quarter to 1.36%. As of June 30, the reserve ratio exceeded the statutory minimum and, beginning with Q3, the FDIC will no longer operate under the restoration plan.
The total number of FDIC-insured institutions declined by 41 during the second quarter to 4,421. During the quarter, two banks opened, one bank failed, five banks were sold to non-FDIC-insured institutions and 37 institutions merged with other banks.
To read more, visit: https://www.fdic.gov/news/press-releases/2025/fdic-insured-institutions-reported-return-assets-113-percent-and-net
CFPB Proposes Setting Guardrails for Nonbank Supervision
The CFPB is proposing to adopt a new standard that it says will bring more uniformity to its supervision of nonbanks.
The Consumer Financial Protection Act authorizes the bureau to supervise nonbanks if it has reasonable cause to determine that the financial products or services a nonbank offers pose “risks to consumers.” Under this authority, the bureau has designated nonbanks for supervision on a case-by-case basis. The proposed rule would define “risks to consumers” as conduct that presents “a high likelihood of significant harm” to consumers and is directly connected to the offering or provision of a consumer financial product or service as defined by the CFPA.”
“In the bureau’s preliminary view, Congress would not have expected it to expend its supervisory resources on issues that are speculative in likelihood or trivial in impact,” according to the proposed rule. “Although some prior orders have adopted a broad approach to the phrase ‘risks to consumers’ under [the CFPA], asserting that it can include even immaterial potential harms, the bureau proposes to reconsider this approach.”
The CFPB added that “it is essential that the bureau focus only on the specific categories of products and services that Congress charged the bureau with overseeing.
The CFPB will accept public comment on the rule for 30 days after publication in the Federal Register.
To read more, visit: https://public-inspection.federalregister.gov/2025-16352.pdf
CFPB Seeks Input on Section 1033 Data Sharing Reconsideration
The CFPB is seeking public comment on the costs and challenges of enforcing the Dodd-Frank Act’s data sharing requirements as it considers new rulemaking to implement the law.
Section 1033 of the Dodd-Frank Act requires financial institutions to make a consumer’s financial information available in electronic form. The CFPB issued a final rule last year to implement the law, but it was challenged in federal court. The bureau requested a stay in the lawsuit to give it time to issue new rulemaking, which the court recently granted. The CFPB said as part of its reconsideration of the rule, it plans to issue a notice of proposed rulemaking to extend the compliance dates.
According to an advanced notice of proposed rulemaking, the CFPB is seeking data and comments to inform it in four areas as it drafts a new rule:
- The proper understanding of who can serve as a “representative” making a request on behalf of the consumer.
- The optimal approach to the assessment of fees to defray the costs incurred by a “covered person” in responding to a customer-driven request.
- The threat and cost-benefit pictures for data security associated with Section 1033 compliance.
- The threat picture for data privacy associated with Section 1033 compliance.
Comments must be submitted within 60 days of publication of the request in the Federal Register.
To read more, visit: https://public-inspection.federalregister.gov/2025-16139.pdf
FDIC Proposes Revisions to New Signage Requirements
The FDIC board has proposed several changes to its recently revised requirements regarding the use of the agency’s name and logo, saying the adjustments will ease the compliance burden on financial institutions.
The FDIC last year adopted new requirements, which were scheduled to take effect on March 1, 2026. Under the notice of proposed rulemaking issued today, the FDIC would make further amendments based on public feedback and push back the compliance date to Jan. 1, 2027. Proposed revisions include:
- Insured depository institutions would have additional flexibility with respect to requirements regarding the color, font and size when displaying the FDIC official digital sign. They would also be expressly permitted to “wrap” the text of the sign to address space constraints.
- The proposed rule would remove the “landing page” requirement, as the term is not commonly used by financial institutions, and would remove the requirement to display the FDIC official digital sign on pages where the customer may transact with deposits. It would instead require an IDI to display the FDIC official digital sign on its digital deposit-taking channels’ page or screen where the consumer initiates a deposit account opening.
- The proposed rule would require non-deposit signage on all pages and screens that are primarily dedicated to one or more non-deposit products.
- IDIs would only be required to display the FDIC official digital sign on the initial screen of an IDI’s ATM or like device. Under the current rule, such signage must be displayed continuously on a “home page or screen and on each transaction page or screen relating to deposits.”
- The proposed rule would provide a non-exhaustive list of examples on various placements of the FDIC official digital sign and non-deposit signage that would meet the “clear, continuous and conspicuous” standard for IDIs’ digital deposit-taking channels.
Comments on the proposal will be accepted for 60 days after publication in the Federal Register.
To read more, visit: https://www.fdic.gov/news/board-matters/2025/board-meeting-2025-08-19-3notation
Younger Generations Saving More Money
Younger generations are saving more money by making trade-offs to limit their spending, according to a new survey by Santander Bank. The survey found that 58% of Gen Z and 54% of millennial respondents have increased their savings since the start of the year, ahead of their Gen X (47%) and baby boomer (39%) counterparts.
The overwhelming majority of Gen Z (81%) and millennials (79%) said growing their savings is a top priority, according to Santander Bank. At the same time, 69% of Gen Z and 62% of millennials made lifestyle trade-offs in the past three months to save more.
The survey found that across generations, consumers with defined savings goals and budgets were more likely to grow their savings during the second quarter of the year. Among those who met their savings goals, top strategies included reducing spending (48%), sticking to a strict budget (41%), and using automated transfers from a paycheck or checking account into a savings account (24%).
To read more, visit: https://www.businesswire.com/news/home/20250820208112/en/Gen-Z-Achieving-Success-in-Saving-Showing-Interest-in-CDs-to-Accelerate-Growth-Santander-Bank-Survey-Finds
HUD Transitions to English-Only Policy
The Department of Housing and Urban Development plans to make English the only language used in its services and communications, according to a memo reported by multiple news outlets.
HUD Deputy Secretary Andrew Hughes, who authored the memo, said the move aligns with a March executive order designating English as the official language of the United States. The agency plans to remove existing non-English flyers and digital resources, while reviewing contracts for translation services. Hughes said the department will comply with federal law where language accommodations are required, including under the Americans with Disabilities Act and the Violence Against Women Act.
Hughes said his department will continue to ensure all individuals have “meaningful access” to programs and will maintain services for the hearing- and vision-impaired. The department described the rollout as “ongoing and iterative,” with the new English-only policy set to take effect immediately.
Last July, the HUD, through the Federal Housing Administration, made available translated versions of 19 single-family mortgage documents used in the servicing of FHA-insured mortgages. These documents were available in Chinese, Korean, Spanish, Tagalog and Vietnamese to assist lenders, servicers, housing counselors and other FHA program participants in explaining information related to FHA-insured mortgages to those with limited English proficiency prior to the execution of these documents in English.