If 2024 is anything like 2023, we know it will be unpredictable. Although we cannot predict what’s to come, we can reflect and review key industry trends from 2023. In our recent comprehensive year end webinar, practitioners discussed insights on New Markets Tax Credits (NMTCs), financial crimes, risk management, liquidity trends and a mortgage industry outlook. Check out the summary of the webinar for these topics and more below.
For more information about any of these topics contact our practitioners here or watch our full webinar at the bottom of this article.
The NMTC program was enacted with the Community Renewal Tax Relief Act of 2000 and since then, over $80 billion of NMTCs have been awarded by the US Treasury Department since inception without a known event of recapture. NMTCs stimulate commercial investment in low-income census tracts. It works by investors purchasing the stream of credits at a discount where their total return is in the form of the tax credits.
ASU 2022-02 key takeaways
Auditor’s report and management’s assessment
The economy shows mixed signals with lower Gross Domestic Product (GDP) growth and persistent inflation above the Federal Reserve System’s target.
An effective risk management system should be a focus for your institution going into 2024. Institutions should proactively assess and mitigate risks to safeguard information and assets and protect value.
In 2023, these were the hottest trending cyber topics for financial institutions:
To have an effective cybersecurity oversight, we suggest reviewing the National Association of Corporate Directors’ (NACD) annual handbook on cyber risk oversight. Key principles include:
Money laundering and sanctions are in the headlines every day. From the geopolitical crises between Russia, Ukraine and in the Middle East, to crypto exchanges and illegal marijuana businesses in the U.S., this is an area of every increasing focus and scrutiny by the regulators. Ahead of 2024, make sure your risk assessment and BSA/AML/sanctions programs are updated to reflect the changing landscape, which is a critical first step to safeguarding your institution and reputation from violations. Key focuses should be:
The banking industry trends for liquidity have shown significant volatility from extreme highs during the onset of COVID-19 to recent declines in deposits over the last 12 months. Market interest rates have played a large factor in these swings. In response to these swings' liquidity stress-testing is becoming a large focus area. Stress testing can: