The National Black Chamber of Commerce announced that it supports a temporary extension of full FDIC coverage of noninterest-bearing transaction accounts. NBCC President and CEO Harry Alford encouraged Congress to extend the Transaction Account Guarantee (TAG) program beyond its Dec. 31 expiration. Failing to extend the program would allow approximately $1.4 trillion in deposits to become uninsured overnight.

“Small banks make more that 60 percent of all small-business loans and use this coverage to support local lending,” Alford said. “Because our slow economic recovery remains fragile, allowing this coverage to expire carries the risk of countless unintended consequences for small businesses that are just regaining their footing.”

The NBCC is the latest organization to express its support for the ICBA-led campaign to extend the coverage. The coalition of supporters includes the ICBA Minority Bank Council, 80 state banking and community banking associations, a broad coalition of the nation’s bankers’ banks, the American Bankers Association, the American Land Title Association, the Conference of State Bank Supervisors, the International Franchise Association, the National Association of Federal Credit Unions and others. Read the NBCC Release.

The cycle time for conducting FDIC risk-management exams increased significantly as the institutions’ supervisory ratings deteriorated, according to an inspector general audit. The FDIC OIG audit of examination processes for community banks found that the agency took longer to release examination reports for lower-rated institutions.

The time it took the FDIC to release a report after on-site work generally ranged from two to four weeks for institutions rated 1 or 2 and six to nine weeks for institutions rated 3, 4 or 5. The audit said that the difference in processing time frames can generally be attributed to the additional complexity and volume of deficiencies associated with troubled institutions. There was no similar lapse for compliance exams since 2009, according to the audit.

The report also found that the overall cycle time for well-rated institutions increased over the course of the 2007-2011 review. The report said the FDIC attributed the increase to policy changes that imposed additional baseline procedures and allowed for more examiner discretion in expanding the scope of their exams.

The audit was conducted following a request from the Senate Banking Committee. While the report provides an overview of the FDIC’s appeals processes, it does not include an assessment of the adequacy or effectiveness of these processes. Read the Audit.

The Federal Reserve System launched a new website and publication dedicated to community banking. The Community Banking Connections site says it is designed to clarify key supervisory guidance, highlight new regulations, provide perspectives from bank examiners and Federal Reserve staff and provide resources to help community banks. The site will host the quarterly publication and real-time policy updates.

“We hope this publication will provide an effective opportunity to foster enhanced communication between the Federal Reserve and community bankers,” Fed Chairman Ben Bernanke said in an interview on the site. “We also hope it will inform and clarify expectations and give a better sense of the Federal Reserve's perspectives on supervisory matters.” Visit the Site.

The ICBA Securities Community Bank Investment Institute is scheduled for Oct. 22-24 in Memphis, Tenn. The institute is designed to provide community bankers with the knowledge needed to plan, create and manage effective community bank portfolios. This updated curriculum has been specifically designed to equip a portfolio manager to deal with current portfolio management issues. Learn More. Register Online. Book a Room.

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