Amid a year-end federal rulemaking surge, the comment period for a proposed Consumer Financial Protection Bureau regulation will close December 29, despite ongoing industry efforts to extend the comment period.
IBAT has led the charge among twenty state community banking trade associations seeking more time to analyze and consider alternatives to the so-called “open banking” rule.
The Section 1033 proposed open-banking rule establishes a framework whereby consumers or third-parties acting on behalf of consumers can request financial data including account information, terms and conditions including APY, rewards, etc. and scheduled bill payment information. This far-reaching rule will restructure the design of the banking system, likely alter the way banks and their customers have traditionally conducted their relationships and impose multiple direct and indirect costs on Texas community banks. IBAT will release its comment letter to members and can assist with comments as well as an understanding of the rule’s nuances. IBAT strongly encourages banks to become aware of this rule given the short implementation deadlines and impact on customer relationships. For more information, please contact IBAT’s regulatory affairs or government relations teams.