- Education & Events
- Advocacy
- Products & Services
- Membership
- Resources
- SDBANKER Magazine
- SDBA eNews
- SDBA eNews Archives
- Legislative Update/Bill Watch
- South Dakota Bank Directory
- Women in Banking
- Scenes of South Dakota Calendar*
- Holiday Signs
- Regulatory Report
- South Dakota Banking Code
- Record Retention Manual
- Advertising & Sponsorship Guide
- COVID-19 Resources
- Mental Health and Crisis Prevention
- About
|
News
SDBA UpdatesSDBA Events
Online EducationABA Banking Journal: Minutes: FOMC takes wait-and-see approach to future rate cutsDecember 30, 2025
Regarding the extent and timing of future adjustments, however, some members recommended keeping the target range “unchanged for some time” after voting to lower the range during meeting earlier this month. “A few participants observed that such an approach would allow policymakers to assess the lagged effects on the labor market and economic activity of the committee’s recent moves toward a more neutral policy stance while also giving policymakers time to acquire more confidence about inflation returning to 2%,” according to the minutes. “All participants agreed that monetary policy was not on a preset course and would be informed by a wide range of incoming data, the evolving economic outlook, and the balance of risks.” The FOMC voted on Dec. 10 to lower the target range of the federal funds rate by 25 basis points, to 3.5%-3.75%. Nine members voted for the cut, while three FOMC members voted against it. Fed Governor Stephen Miran voted no, instead preferring a cut of 50 basis points. Chicago Fed President Austan Goolsbee and Kansas City Fed President Jeffrey Schmid also voted against the cut, preferring no change to the target range. Notably during the December meeting, the FOMC also decided to begin reserve management purchases, or RMPs, which means that the Fed is expanding its balance sheet by purchasing short-term U.S. Treasurys. Members agreed that it was “appropriate to begin RMPs and initiate purchases of shorter-term Treasury securities to maintain an ample supply of reserves over time,” according to the meeting minutes. The last time the Fed engaged in RMP was 2019. Back to TopABA offers changes to FDIC, OCC proposed safety and soundness rulesDecember 29, 2025
ABA today responded to a notice of proposed rulemaking issued by the FDIC and the Office of the Comptroller of the Currency in October that would define the term “unsafe or unsound practice” for purposes of section 8 of the Federal Deposit Insurance Act and “revise the supervisory framework for the issuance of matters requiring attention and other supervisory communications.” While its letter recommends some changes to the final rule, ABA supports the joint agency proposal overall. Regarding unsafe or unsound practices, ABA urged that the rule clarifies that isolated or technical incidents do not qualify as “practices”; requires agency examiners “to provide demonstrable and quantifiable evidence to support the conclusion that material financial harm is ‘likely’”; and ties the materiality standard explicitly to case law. ABA also recommended revising or removing the agencies’ comments on tailoring as it relates to community banks, noting that supervisory and enforcement actions should be focused on a risk-based approach that “takes the risk profile of each institution into account rather than setting expected thresholds for materiality based on the size of an institution.” ABA also supports the proposed standard for issuing MRAs and recommended requiring that violations of law must be “substantive” rather than technical, isolated, or immaterial; and incorporating the association’s comments regarding “material harm” throughout the proposal. Additionally, ABA recommended that the final rule should codify the “strict parameters applicable to the agencies’ informal supervisory communications,” in addition to clarification about “whether composite rating downgrades within other rating systems would only occur in cases where the institution receives an MRA that meets the standard outlined in the proposal or an enforcement action pursuant to the agencies’ enforcement authority.” ABA also encouraged the FDIC and OCC to consider other recommendations related to the proposal, including self-identified acts or practices, MRA closure, coverage of legacy MRAs and examiner training. Back to TopFinCEN Announces Data-Driven Border Operation to Address Potential Money LaunderingWASHINGTON— Today, the U.S. Department of the Treasury’s Financial Crimes Enforcement Network (FinCEN) announced a multi-tiered operation targeting more than 100 U.S. money services businesses (MSBs) operating along the southwest border. These MSBs—which provide financial services outside of a formal bank—are being examined for potential non-compliance with regulations designed to detect money laundering and combat illicit finance. FinCEN’s operation resulted in the issuance of six notices of investigation, dozens of examination referrals to the Internal Revenue Service (IRS), and over 50 compliance outreach letters. “At President Trump’s direction, the Treasury Department is utilizing all tools to stop terrorist cartels, drug traffickers, and human smugglers,” said Secretary of the Treasury Scott Bessent. “This sweeping operation will help root out potential cartel-related money laundering from the U.S. financial system.” Click here to watch a video from Secretary Bessent on today's announcement. MSBs operating along the southwest border can face elevated exposure to illicit activity, including the laundering of proceeds from drug trafficking, smuggling of illegal aliens, and other serious crimes. This operation is consistent with President Trump’s directive to secure the border and to pursue the total elimination of Cartels and Transnational Criminal Organizations. Ongoing Border Operation Based On Data From Over ONE Million Banking Records — May result in Monetary Penalties, irs examinations, and criminal referralsFinCEN’s operation resulted in the issuance of six notices of investigation, dozens of examination referrals to the IRS, and over 50 compliance outreach letters. These tiered actions are designed to address the money laundering vulnerabilities created by MSBs that appear to be non-compliant with the Bank Secrecy Act. MSBs on the receiving end of these actions are on notice that Treasury will not tolerate Bank Secrecy Act violations that could put Americans at risk. This data-driven operation is based on a review of over one million Currency Transaction Reports and 87,000 Suspicious Activity Reports, which financial institutions are required to submit to FinCEN to provide highly useful data to law enforcement. This is an ongoing operation in which FinCEN will follow the facts and, where appropriate, seek to impose civil money penalties, pursue civil injunctive actions, issue warning letters, and make referrals to criminal authorities for willful violations of the Bank Secrecy Act. FinCEN is coordinating closely with the Homeland Security Task Force, the Internal Revenue Service, and both law enforcement and regulatory partners at the state and federal levels. Treasury Deploys Cutting-Edge Technology to Target Potential Money Laundering on Southwest BorderThe Trump Administration has prioritized making government more modern, effective, and efficient. Under Secretary Bessent’s leadership, Treasury has expanded its use of advanced technology to deliver results for the American people. FinCEN is now applying high-performance data processing to uncover illicit networks and protect the U.S. financial system from evolving threats. Treasury’s modernization efforts have strengthened FinCEN’s ability to transform fragmented financial information into reliable, decision-grade leads at scale. This commitment to technological advancement has enabled FinCEN to launch this first-of-its-kind, data-driven enforcement operation to enhance the safety of the American public. Compliance Failures Threaten National SecurityFailure to comply with the Bank Secrecy Act deprives law enforcement and national security agencies of critical financial intelligence and increases the risk that MSBs can facilitate money laundering and other criminal activity. U.S. MSBs, including those operating along the southwest border, are reminded that they must:
Back to TopABA Banking Journal: CRA small-bank asset-size thresholds updated for 2026December 30, 2025
CRA regulations establish the criteria by which relevant agencies assess a financial institution’s record of meeting the credit needs of its entire community, including low- and moderate-income neighborhoods. The asset-size thresholds are adjusted annually based on the average change in the Consumer Price Index for Urban Wage Earners and Clerical Workers, which is a measure of inflation. The CPI-W for the period ending in November increased 2.51%. The small-bank asset-size threshold is for an institution that, as of Dec. 31 of either of the prior two calendar years, had assets of less than $1.649 billion. The threshold for 2025 was $1.609 billion. The updated threshold for an intermediate small bank is for an institution that, as of Dec. 31 of either of the prior two calendar years. had assets of at least $412 million and less than $1.649 billion. The 2025 threshold was at least $402 million and less than $1.609 billion. The updated thresholds take effect Jan. 1. Back to top |
Most members of the Federal Open Market Committee agreed that further reduction of the federal funds rate in the near future “would likely be appropriate if inflation declined over time as expected,” 
The Federal Reserve and FDIC today released the 
The SDBA offers holiday signs that banks can print and display to notify customers when the bank will be closed for standard holidays. The signs are set up to be printed on 8.5x11" paper and are provided as a high-resolution pdf file. Banks may print these signs and use as they see fit.
