Federal Reserve Board issues enforcement action with Small Business Bank and announces termination enforcement actions with BNP Paribas S.A., BNP Paribas USA, Inc., BNP Paribas Securities Corp., and Community Bankshares, Inc.

The Federal Reserve Board issued a new enforcement action against Small Business Bank of Lenexa, Kansas, while simultaneously terminating longstanding orders against three BNP Paribas entities and Community Bankshares, Inc., according to a July 2, 2026 announcement. The new action, a PCA Directive dated June 29, 2026, was issued against Small Business Bank [1]. The Federal Reserve did not disclose the specific financial conditions that triggered the Prompt Corrective Action directive, a regulatory measure typically imposed on banks that fall below certain capital thresholds [1]. The bank is based in Lenexa, Kansas [1]. The announcement provided no further details on the bank's balance sheet or the required remedial steps [1]. The Federal Reserve's enforcement actions are designed to address unsafe or unsound practices and violations of law [1]. A security, in the legal context of such regulatory oversight, is a tradable financial asset whose definition varies by jurisdiction but generally includes instruments like stocks and bonds [5]. The Federal Reserve's oversight of bank holding companies and state member banks often involves ensuring the soundness of their securities portfolios [5].