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| | Liquidity Risks and Payment Stablecoins |
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| | A new essay warns policy makers and market participants that there are liquidity risks inherent to payment stablecoins. The authors at ABA – Sayee Srinivasan, chief economist, and Yikai Wang, VP for banking and economic research – warn that episodes like the selling of securities and the flight to the safety of cash during the early days of the Covid pandemic show that even the most liquid instruments like Treasury securities can be quickly disrupted. |
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| | “Adding another instrument to the mix, one dependent on liquidity in Treasurys and associated repo markets, will likely magnify interconnected risk and the resulting contagion during stressed market conditions.” |
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| | | Senator Ted Budd, together with a bipartisan group of Senators, has filed The Tailored Regulatory Updates for Supervisory Testing Act (TRUST Act) to increase the total asset threshold under which well-managed banks may qualify for an 18-month exam cycle from $3 billion to $6 billion. It is a companion bill to one in the House by Representative Tim Moore. |
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| | | The FDIC and OCC have each released the market scenarios they will use in their upcoming stress tests to help ensure that large banks can continue to lend to households and businesses even in a severe recession. The agencies coordinated with the Federal Reserve to develop the scenarios, with the Fed releasing its scenarios last week. |
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| First Citizens CEO Frank Holding Named to Federal Advisory Council |
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| | First-Citizens Bank & Trust Company, the wholly owned banking subsidiary of First Citizens BancShares, Inc., announced that Chairman and CEO Frank Holding has been appointed to the Federal Reserve Board of Governors' Federal Advisory Council (FAC) for 2026. Holding will represent the Fifth District on behalf of the Federal Reserve Bank of Richmond. |
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 | | Frank Holding, First Citizens Bank |
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| Federal Legislative & Regulatory Update⚖️ |
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| Beneficial Ownership Reporting |
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| | FinCEN has issued an order exempting covered financial institutions from the requirement to identify and verify the beneficial owners of a legal entity customer each time the customer opens a new account. Rather than having to identify and verify a legal entity customer’s beneficial owners each time that customer opens an account, financial institutions may instead limit their identification and verification of the identities of beneficial owners to the following circumstances: |
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- when a legal entity customer first opens an account with a covered financial institution;
- any time thereafter when the covered financial institution has knowledge of facts that would reasonably call into question the reliability of beneficial ownership information previously obtained about the legal entity customer; and
- as needed based on a covered financial institution’s risk-based procedures for conducting ongoing customer due diligence.
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| Lending Rate Caps on Out-of-State Banks |
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| | Two members of Congress have introduced legislation to prevent states from imposing interest rate caps on loans from out-of-state, state-chartered banks and credit unions. | | The American Lending Fairness Act has been filed in the Senate as S. 3889 by Sen. Bernie Moreno (R-OH). A House companion bill is being offered by Rep. Warren Davidson (R-OH), but the legislation has yet to be assigned a bill number. |
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 | Left: Sen. Bernie Moreno (R-OH)
Right: Rep. Warren Davidson (R-OH) |
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| Currently, states can opt out of the federal Depository Institutions Deregulation and Monetary Control Act of 1980, allowing them to establish restrictions on loans made by state-chartered banks. | | For consumer-credit transactions, Colorado chose to opt out in 2024 and imposed restrictions on rates and fees on both its own state-chartered banks and banks chartered in other states. The Colorado opt-out does not apply to loans made by national banks, as their interest exportation authority stems from the National Bank Act, which does not have a state opt-out provision. |
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| OCC Supervisory Appeals Process |
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| | The OCC is requesting comment on a proposal to establish revised procedures and policies for appeals by OCC-supervised entities of material supervisory determinations. The proposal includes adding an “appeals board” to hear bank appeals, enhancing the role of the Ombudsman as a neutral liaison to help banks seek redress for grievances, establishing a de novo standard of review for appeals, and strengthening prohibitions against retaliation. |
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| Revitalizing Bank Mortgage Lending |
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| | The Federal Reserve will soon issue proposals to change the regulatory capital framework in ways that incentivize banks to originate and service mortgages, Vice Chair for Supervision Michelle Bowman said at a conference in Orlando. |
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| The proposals would “remove the requirement to deduct mortgage servicing assets from regulatory capital while maintaining the 250% risk weight assigned to these assets,” Bowman said. | | The Fed will also consider increasing the risk sensitivity of mortgage loans held by banks and create a broader range of risk weights that would reflect the relative characteristics of different loans rather than applying a uniform risk weight regardless of the loan-to-value ratio. |
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 | | March 3-4, 2026 | UNC Charlotte Marriott |
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| FinCEN’s Whistleblower Program |
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| | FinCEN has launched a new webpage to accept whistleblower tips on fraud, money laundering and sanctions violations. Individuals who voluntarily provide information about violations or conspiracies to commit violations may receive compensation awards if the information they provide leads to a successful enforcement action by Treasury or the Department of Justice (DOJ) that results in monetary penalties exceeding $1,000,000, and other requirements are met. |
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| Comparing Charlotte and Dallas as Banking Hubs |
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| | The Axios digital media company has published an article pointing to a growing rivalry between Charlotte and Dallas in corporate relocations and economic development deals. The article notes that Charlotte is the No. 2 banking hub in the country, based on assets. |
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| The article goes on to note, however, that the Dallas metro has moved up to the second-largest hub for financial workers, behind only New York, with about 382,000 professionals compared to Charlotte's 125,000. |
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| | Applications Open for Spring BankWork$ Training Program |
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| The application window has opened for the next BankWork$ training program. This eight-week workforce development initiative is designed to prepare participants for careers in the financial services industry. | | BankWork$ provides comprehensive training in essential banking skills, customer service, and professional development, along with one-on-one coaching and direct connections to local financial institutions seeking qualified candidates. Graduates are prepared to pursue entry-level roles such as personal banker, associate banker, relationship banker, and lead teller, creating a clear pathway from training to employment. | | Applications will remain open through March 18. Bankers are encouraged to share this opportunity within their communities to help connect job seekers with rewarding careers in North Carolina’s banking industry! |
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| Applications Now Open for 2026 NCBA Foundation Scholarship |
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| | The NCBA Foundation is proud to continue its longstanding commitment to higher education through the 2026 Scholarship Program. Applications are open through March 27. | | Since 1984, the program has awarded annual stipends to help children of financial institution employees pursue their academic goals. |
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| This valuable benefit is available to North Carolina employees of institutions that participate in the Scholarship Program. We encourage eligible families to take advantage of this opportunity and apply during the open window. A list of participating institutions and additional details are available online. |
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| Save the Date for the North Carolina School of Banking: July 20-24, 2026 |
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| | Are you ready to dive deeper into the world of banking? Then save the date for the North Carolina School of Banking! With top-notch training from some of the sharpest minds in the industry, there’s no other experience quite like it. |
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| Need Credits? Earn CRCM, CPE, SHRM and More! |
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| | Looking to skill up? For a limited time, North Carolina Bankers Association is making it easier than ever to invest in your professional growth. Sign up for one of the upcoming webinars from our partnered providers: |
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| KS Bank Hires Walt Parker as New Commercial Relationship Manager |
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| | KS Bank has announced that Walt Parker has been hired as a Commercial Relationship Manager in their Garner office. In this role, Parker will manage overall banking functions in the branch as well as be responsible for deposit growth and loan production. Parker will be responsible for developing new business and making and servicing loan requests. |
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| Earl W. Worley, Jr., KS Bank President and Chief Executive Officer, shared: “We are excited to share the addition of Walt Parker to our team. He is an experienced commercial banker with strong ties to the Wake County community – as a matter of fact, he worked with KS Bank as a branch manager at the start of his career. We look forward to seeing his skills and expertise enhance our presence in Garner.” |
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| Credit Union to Acquire Bank Branches |
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| | ABNB Federal Credit Union has reached an agreement to acquire two First Bank of Virginia branch locations in Roanoke Rapids and Louisburg. The branches will transition to the Chesapeake, Virginia-based credit union later this year, pending regulatory approval and customary closing conditions. |
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| | "Hold fast to dreams, for if dreams die, life is a broken-winged bird that cannot fly." |
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| NC Bankers Association | 3601 Haworth Drive | Raleigh | NC | 27609 | US |
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| | If you no longer want to receive emails regarding the NCBankers Bulletin, please profile. |
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