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        CBO Estimates SAFE Act Would                            Citing Economic Risk, Senators
        Save Government Money                                   Call for CECL Delay, Study

        The Congressional Budget Office has released its cost estimate for   Senator Kevin Cramer has
        H.R. 1595, the SAFE Banking Act that would allow banks to serve   joined a bipartisan group of
        legitimate cannabis businesses in states that have legalized the drug.   15 senators in a letter to the
        According to the CBO, the bill would save the federal government   Federal Reserve and FDIC
        $4 million over a ten-year period.                      urging a delay in the implementation of the Current Expected
                                                                Credit Loss model for loan loss accounting until after the agencies
        To read the CBO report visit:  can study CECL’s economic effects. The senators highlighted
                                                                concerns raised by banks that CECL may reduce credit availability
                                                                and exacerbate economic cycles, arguing that the “potential
        McWilliams: Bank-Made Small-                            economic disruptions of the new standard mandate careful study
        Dollar Loans Critical for Financial                     before it goes into effect for any bank.”
        Inclusion                                               “Bankers with deep knowledge of the local communities they
                                                                serve should make lending decisions based on their judgments
        The FDIC is actively looking for                        and supported by sound risk management practices,” the group
        ways to enable banks to offer small-                    of seven Republicans and eight Democrats wrote. “They should
        dollar loans, FDIC Chairman Jelena                      not be artificially constrained by sophisticated, yet imprecise,
        McWilliams said at a Cato Institute                     forward-looking models that cannot accurately predict the future.”
        event, drawing an important link                        The letter follows a similar bipartisan letter to the Securities and
        between the availability of these                       Exchange Commission from House members last week.
        products and financial inclusion.
                                                                NDBA thanks Senator Cramer for his leadership on this important
        “If banks do not offer small-dollar                     issue for North Dakota banks.
        products, consumers who need
        small-dollar loans do not even have                     To read the letter visit:
        an opportunity to become banked     Jelena McWilliams   WINNDocs/Tillis-Jones-CECL-Letter-05102019.pdf
        and start building credit histories,” McWilliams explained. She
        added that the agency is working to revise its policy framework “to  House Lawmakers Introduce Bill to
        encourage banks to offer small-dollar loan products to customers   Stop and Study CECL
        in need.”
                                                                In related news, a bipartisan group of House lawmakers
        To read McWilliams speech visit:  have introduced H.R. 3182, a bill calling for a halt to the
                                                                implementation of the current expected credit loss standard until
                                                                a quantitative impact study can be completed. A companion bill
        FDIC Chair Says CRA Reform                              (S.1564) was previously introduced in the Senate by Sen. Thom
        Will Clarify Qualifying Activities,                     Tillis (R-N.C.) and co-sponsored by Senator Kevin Cramer.
        Lending Assessment                                      To read more visit:
        In a speech to community bankers, FDIC Chairman Jelena   5D%7D&r=1&s=4
        McWilliams said that the regulators’ initiative to modernize the
        Community Reinvestment Act (CRA) will focus on clarifying
        exactly what bank activities qualify for CRA credit as well as the   Senators Introduce Draft of
        lending offered beyond a bank’s brick-and-mortar market area. In   Bipartisan AML Reform Bill
        addition, she noted that the rules will ensure that CRA investments   A bipartisan group of senators have released draft legislation aimed
        target those most in need within the community.
                                                                at reforming several existing anti-money laundering rules. The
        To read McWilliam’s speech visit:  lawmakers – Sens. Mark Warner (D-Va.), Tom Cotton (R-Ark.),
        news/speeches/spjun0419.html                            Doug Jones (D-Ala.) and Mike Rounds (R-S.D.) – are seeking
                                                                public feedback on the bill by July 19.

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