The first batch of quarterly bank data since the declaration of the global health pandemic (the novel coronavirus, or COVID-19) is slated for release next week, which also brings – among other things – Federal Reserve testimony before Congress on monetary policy and the end of the public comment period on acquisitions by credit unions.
Monday: Comments are due to the National Credit Union Administration on a proposal to “clarify and make transparent” the procedures and requirements currently in place related to combination transactions, including those in which a federally insured credit union (FICU) proposes to assume liabilities from a non-credit union, including a bank; and an FICU’s merger or consolidation with a non-credit union entity. The proposed rule also is aimed at clarifying the scope of NCUA rules that require it to grant approval before an FICU may purchase loans or assume an assignment of deposits, shares, or liabilities from any institution not insured by the National Credit Union Share Insurance Fund (NCUSIF). A comment period expired March 30, but the agency in mid-April reopened it until June 15.
Tuesday: The Federal Deposit Insurance Corp. (FDIC) releases first-quarter bank performance data during a public briefing, slated for 11 a.m. ET, that is expected to feature agency Board Chairman Jelena McWilliams. The first-quarter results will provide data on a banking system on the verge of facing the impact of the coronavirus crisis, which was declared March 11 by the World Health Organization. Numbers from the previous quarter indicated a slight downturn in the banking sector, with a slight decline in net income at year-end 2019.
Tuesday also brings testimony by Federal Reserve Board Chair Jerome H. (“Jay”) before a Senate Banking Committee on the Fed’s semiannual monetary policy report. (The Fed’s Monetary Policy Report was issued Friday, ahead of the hearing.) Powell can be expected to field a variety of questions on Fed actions to help minimize the financial impact of the pandemic. Reports have also noted the Fed was considering Treasury security purchases to set “yield caps” in order to keep interest rates low. The Senate Banking hearing is slated for 10 a.m. ET.
At 6:30 p.m., Fed Vice Chair Richard H. Clarida will deliver remarks on the U.S. economic outlook and monetary policy via prerecorded video before the the presentation of the Foreign Policy Association Medal at the Foreign Policy Association Annual Dinner.
Wednesday: Fed Chair Powell will repeat his monetary policy testimony before the House Financial Services Committee during a hearing slated for noon.
Also Wednesday, the Office of the Comptroller of the Currency (OCC) will host, by remote means, a public meeting of the Minority Depository Institutions Advisory Committee (MDIAC). Discussion will focus on current topics of interest to the industry. The meeting is set to begin at 10 a.m.
Thursday: The NCUA is expected to publish its agenda for the agency board’s June 25 open meeting. (Such agendas are typically posted to the agency’ website by 3 p.m. ET.)
Friday: Fed Vice Chair for Supervision Randal Quarles is slated to deliver remarks on stress testing before the Women in Housing & Finance public policy event at noon.
Also Friday, Fed Chair Powell will participate in a virtual discussion at the Federal Reserve Bank of Cleveland on “Building a Resilient Workforce During the COVID-19 Era.” This event is slated for 1 p.m.