OTHER BANKING NEWS
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Agencies Update Host-State Loan-To-Deposit Ratios
The federal banking agencies have issued updated host-state loan-to-deposit ratios that they will use to determine compliance with Section 109 of the Riegle-Neal Interstate Banking and Branching Efficiency Act.
Section 109 prohibits banks from establishing or acquiring branches outside their home states primarily for the purpose of deposit production. Congress enacted Section 109 to ensure that interstate branches would not take deposits from a community without helping to meet its credit needs.
To read more, visit: https://www.occ.gov/news-issuances/news-releases/2025/nr-ia-2025-45a.pdf
CFPB Rescinds Dozens of Guidance Documents
The CFPB is rescinding dozens of guidance documents as part of a directive by President Trump to reduce regulation. The rescinded guidance covers topics such as fair lending, overdraft fees, disclosure policies and consumer information requests to large banks and credit unions.
“The CFPB has issued non-binding policy guidance in myriad forms over its history… In many instances, this guidance has adopted interpretations that are inconsistent with the statutory text and impose compliance burdens on regulated parties outside of the strictures of notice-and-comment rulemaking,” CFPB Acting Director Russ Vought said in the order to rescind the guidance.
Among the rescinded guidance:
- A 2023 policy statement on how the CFPB determines abusive acts or practices.
- A 2022 interpretive rule describing states’ authorities to pursue companies and individuals that violate federal consumer financial protection law.
- A 2024 circular on whether unlawful or unenforceable terms and conditions in contracts for consumer financial products and services violate the prohibition on deceptive acts or practices in the Consumer Financial Protection Act.
- A 2024 advisory opinion to remind debt collectors of their obligation to comply with the Fair Debt Collection Practices Act in the collection of medical debt.
- A 2023 advisory opinion reminding large banks and credit unions to comply “in a timely manner” to customer requests for information about their accounts.
- Two circulars on the legality of unanticipated overdraft fee assessment practices and “improper” overdraft opt-in practices.
To read more, visit: https://public-inspection.federalregister.gov/2025-08286.pdf
President Signs Repeal of CFPB Overdraft Rule
President Trump has signed into law a resolution overturning the CFPB’s limits on overdraft fees. Passed as a Congressional Review Act resolution last month, the resolution means that the CFPB cannot take issue a similar rule in the future.
The CFPB overdraft rule — now voided — required banks with at least $10 billion in assets to cap overdraft fees at $5 unless they voluntarily set a cap that covers their actual costs and losses or treat overdraft protection as a loan covered by the Truth in Lending Act. ABA, the Mississippi Bankers Association and others promptly challenged the rule in court.
“While we have been confident in the merits of our case, we are pleased to see President Trump and Congress repeal this unlawful rule through CRA,” ABA and the other plaintiffs said in a statement. “President Trump’s signature doesn’t just preserve access to this essential financial lifeline for millions of Americans who need it; it also means our litigation against the CFPB challenging this rule is now moot.”