2/9/2015
Wayne A. Abernathy
Still Alive, After All These Years
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2/9/2015
Bank Competencies
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Financial Intermediation: Savers/Borrowers
Custodial Services
Trust Services
The Payments System
Capital Formation
Liquidity Provision
Cash Management
Government Finance
Wealth Management
Repeated Congressional Reaffirmation
• National Bank Act: 1863, 1864 (OCC)
• Federal Reserve Act: 1913
• The Banking Act of 1933 (FDIC)
• Gramm-Leach-Bliley Act: 1999
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2/9/2015
Diversity of Banks
For a Diversity of Customers
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Community Banks
Regional Banks
Money Center Banks
International Banks
Retail Banks
Wholesale Banks
Bankers Banks
National Banks
State Chartered Banks
State Chartered Savings Banks
State Chartered Mutual Savings
Banks
Federal Savings Associations
Trust Banks
State Chartered Trust Companies
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Custodial Banks
Federal Mutual Savings
Associations
Private Banks
Publicly-Traded Banks
Privately-Held Banks
S-Corporation Banks
CDFI Banks
Ag Banks
Credit Card Banks
Internet Banks
Industrial Loan Corporations
Edge Act Corporations
Agreement Corporations
Foreign Bank Branches
Regulatory Burden Rising
1,955
Number of Items per Filing
1,680
1,116
785
775
569
241
247
238
238
309
403
1960 1965 1970 1975 1980 1985 1990 1995 2000 2005 2010 2012
Source: Call Report, Federal Financial Institutions Examination Council
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2/9/2015
When?
6,589 Banks
When?
6,589 Banks
2014
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2/9/2015
When?
6,589 Banks
2014
1891
New Charters
How Many
Since 2010?
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2/9/2015
New Charters
How Many
Since 2010?
One
Industry Consolidation
# Institutions
20,000
<$100 Million
18,000
$100M - $1 B
16,000
$1 B - $10 B
14,000
> $10 B
12,000
10,000
14,034
8,000
2,005
6,000
4,000
2,000
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1984
4,053
3,399
1988
1992
1996
2000
2004
2008
2012
Source: FDIC
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2/9/2015
Legislative Prospects
A Few Key Issues
• Tailored Supervision
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QM for Portfolio Mortgages
Brokered Deposits
Basel III: Highly Capitalized Banks
• Operation Choke Point/De-Risking
• Replace DFA Asset Thresholds with Risk-Focused Criteria
• Examination Accountability
• CyberSecurity: National Standards
• Civil Money Penalties: Evasion, not Weaknesses
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2/9/2015
Here Today, Where Tomorrow?
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