A coalition of 80 state banking associations called on Congress to temporarily extend full FDIC coverage of noninterest-bearing transaction accounts before it expires at year-end. In a joint letter that was covered by Reuters, the organizations wrote that the Transaction Account Guarantee program should be extended beyond its Dec. 31 expiration date because of continued economic and financial instability.

“Failure to continue FDIC coverage of these accounts would create disruption and uncertainty in the banking system and for small businesses, municipalities, hospitals, and other entities that use these accounts to meet payroll and operational expenses,” the coalition wrote. Read ICBA Release.

ICBA is encouraging community bankers to complete a survey on the potential impact of the proposed Basel III regulatory capital rules on their bank. The survey results will help ICBA develop formal comments on the proposed rules, which would impose new capital and risk-weighting mandates on all banks. Survey responses are due by this Friday.

ICBA also is urging community bankers and industry allies to sign a petition calling on regulators to exempt community banks from proposed Basel III capital rules and to allow community banks to continue operating under Basel I capital regulations. Take the Survey. Sign the Petition. Learn More.

A new video produced by ICBA and The Clearing House illustrates the complex world awaiting community banks performing more than 100 remittance transfers annually. The Consumer Financial Protection Bureau final rule, which takes effect Feb. 7, 2013, requires disclosures for related rates and fees and procedures for investigating disputes and remedying errors. ICBA has long voiced opposition to the rule, which is an amendment to Regulation E.

ICBA also has updated its summary of the CFPB remittance transfer rules, including the recent safe harbor provisions. The video and updated summary are available on the ICBA website.

New economic indicators offered generally upbeat news ahead of tomorrow’s remarks by Federal Reserve Chairman Ben Bernanke from Jackson Hole, Wyo. Economic activity continued to expand gradually in July and early August across most regions, according to the Fed’s Beige Book. Most districts indicated increased retail activity and improving real estate markets, though loan demand was mixed across loan types. However, the Midwest drought reduced actual and expected farm output, and several districts noted concerns about rising agricultural commodity prices.

Other indicators boded well for the economy as well. The GDP grew faster in the second quarter than earlier anticipated, with the Commerce Department’s second estimate rising to 1.7 percent from the initial estimate of 1.5 percent. Additionally, pending home sales rose 2.4 percent in July and were up 12.4 percent from a year ago, according to the National Association of Realtors.

The FDIC and Office of the Comptroller of the Currency announced steps to help financial institutions affected by Hurricane Isaac. The OCC said national banks and federal savings associations affected by the hurricane can close at their discretion. The FDIC said it will consider regulatory relief from certain filing and publishing requirements.

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