Daily Brief · July 31, 2026
BaaS credit expense and bank capital access
Coastal’s partner-linked loss, capital-rule revisions and SEC shelf concerns set the day’s main bank thesis risks.
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Credit and operating risk
Coastal Financial took a partner-linked BaaS credit hit
The company recorded a $68.8 million credit expense tied to one fintech partner’s deteriorating financial condition and posted a $42.1 million second-quarter loss. Coastal Financial also named Christopher Adams executive chairman, with CEO Eric Sprink retaining day-to-day management responsibilities.
Source: American Banker
Capital, funding and lending rules
Federal Reserve, FDIC and OCC revised the Community Bank Leverage Ratio compliance guide
The agencies issued the update after changes that took effect in July lowered the CBLR requirement from 9% to 8% and extended the temporary-noncompliance grace period from two quarters to four quarters.
Source: ABA Banking Journal
ABA and BPI opposed SEC Form S-3 eligibility changes
Their July 27 comment letter warned that the proposed expansion of ineligible-issuer consequences could impose a more severe restriction on capital markets access. The groups said banks’ extensive regulatory oversight makes them more likely to face actions that could affect Form S-3 eligibility and shelf-registration flexibility.
Source: American Banker
Senate Farm Bill draft would expand FSA lending tools
ABA said the Senate Agriculture Committee draft would raise Farm Service Agency guaranteed and direct farm-loan limits, lower some eligibility thresholds and remove several Farm Credit System provisions it opposed. The next step is a Senate markup, with potential timing in the first week of August.
Source: ABA Banking Journal
Payments and technology risk
BIS said frontier AI lowers cyberattack costs
The Bank for International Settlements said frontier AI models can identify system weaknesses and develop exploits, with attack costs ranging from $10,000 to as little as $50. BIS said defenders face higher costs because they must protect all systems and urged stronger cyber hygiene and third-party risk controls.
Source: ABA Banking Journal
Mastercard’s quarter supported a higher revenue outlook
Mastercard reported $9.3 billion of quarterly net revenue, $4.4 billion of net income and $4.97 of EPS, and raised full-year revenue growth guidance to the low teens.
Source: American Banker
Mastercard launched Agent Pay for Machines
The product is designed to let AI agents execute machine-to-machine payments for low-value digital services.
Source: American Banker