Skip to content

Overdraft Fee income and its sensitivity to regulators

A large amount of our bank’s Net Income Before Taxes and Extraordinary Items, shown on our Call Report or in general ledgers, consists of fees associated with the automated ODP product. Is this of any concern to our regulatory agencies and do we need to be monitoring the impact of overdraft fees to our bottom line?

Yes. Regulators are concerned when such fees constitute a material amount of a bank’s fee income as this may be an indication that a bank is aggressively charging higher fees relative to their peers or have shorter grace periods for repayment before a continuous overdraft fee is accessed. Additionally, such fees may be an indication that the bank is aggressive in “opting-in” customers for the assessment of a fee related to ATM and one-time debit transactions.
Learn more about Don Blaine’s webinar
Overdraft Protection Programs

First published on 05/07/2017

Banker Store View All

From training, policies, forms, and publications, to office products and occasional gifts, it’s available here:

Banker Store

hot right now

image description

Looking for effective, convenient training on a particular subject?

BOL Learning Connect offers more than 200 courses ON-DEMAND or on CD ROM from AML to Reg Z and every topic in between.

Search Topics