FRBNY Finds Changes to PPP Increased Credit Availability for Small Businesses
A New York Fed blog post today concludes that changes the Biden Administration made to the Paycheck Protection Program (PPP) increased credit access for non-employer firms and application take-up for minority owned firms. However, the paper also found a continuing gap in approval rates between white and minority owned firms perhaps due to application rates.
FRB Paper: Integrated Methodologies, Better Data Needed to Calculate Climate Systemic Risk
A new research paper from Fed staff provides extensive detail on an array of data and methodology challenges that now make it difficult, if not impossible, to calculate the systemic risk posed by climate change in the U.S financial market. The paper provides a literature review of research on climate-related financial stability risks, seeking to identify methodologies that comprehensively link climate risk with financial stability. It finds that no single methodology can address the research challenges.
Banking Agencies, FinCEN Refute Suggestions AML Rules Define Bank Offerings
The banking agencies and FinCEN today released a joint statement reminding banks to use a risk-based approach to assessing customer relationships and conducting customer due diligence (CDD), expressly mentioning that this statement does not alter current BSA/AML requirements.