FDIC published the annual report for 2019. The report highlights that FDIC continued to engage in several community banking and community development initiatives, with cybersecurity remaining as a high priority for FDIC in 2019. The agency worked to strengthen infrastructure resiliency, enhance data governance, help financial institutions mitigate risks, and respond to cyber threats. The FDIC Chair mentioned in the report that, in 2020, FDIC will continue to advance the goals of strengthening the banking system, fostering innovation, and ensuring that banks can meet the needs of businesses and consumers across the nation.
The key topics covered in the report are related to fintech, supervision, risk management and internal control, activities related to large and complex financial institutions, resolution, cybersecurity, and management of credit, liquidity, and interest-rate risks. The report also summarizes the key regulations that were issued during 2019. Additionally, the report mentions that a pending notice of proposed rulemaking is planned for early 2020 to address the outstanding issues related to the prohibitions and restrictions on investments in private equity and hedge funds.
The FDIC Chair highlights that regulators must be proactive in engaging with all stakeholders, including banks, consumer groups, trade associations, and technology companies to understand and help foster the safe adoption of technology across the banking system, especially at community banks. The cost of innovation and regulatory uncertainty are the two primary hurdles that are keeping community banks from developing and utilizing new technologies. Partnerships with financial technology companies, or fintechs, can help community banks overcome the first hurdle but, to overcome the second hurdle, FDIC must ensure that its regulatory framework enables those partnerships. In 2019, FDIC established a new office—the FDIC Tech Lab, or FDiTech—to address these issues.
Related Link: Annual Report
Keywords: Americas, US, Banking, Securities, Annual Report, Credit Risk, Liquidity Risk, Risk Management, Resolution, Enterprise Risk Management, Fintech, FDIC
EBA published a report analyzing the impact of the unwind mechanism of the liquidity coverage ratio (LCR) for a sample of European banks over a three-year period, from the end of 2016 to the first quarter of 2020.
In response to questions from a member of the European Parliament, the ECB President Christine Lagarde issued a letter clarifying the possibility of amending the AnaCredit Regulation and making targeted longer-term refinancing operations (TLTROs) dependent on the climate-related impact of bank loans.
IASB started the post-implementation review of the classification and measurement requirements in IFRS 9 on financial instruments and added the review as a project to its work plan.
FSB published a report that examines progress in implementing policy measures to enhance the resolvability of systemically important financial institutions.
EBA published a report on the benchmarking of national loan enforcement frameworks across 27 EU member states, in response to the call for advice from EC.
FSB published a letter from its Chair Randal K. Quarles, along with two reports exploring various aspects of the market turmoil resulting from the COVID-19 event.
RBNZ launched a consultation on the details for implementing the final Capital Review decisions announced in December 2019.
The Trustees of the IFRS Foundation, which are responsible for the governance and oversight of IASB, have announced the appointment of Dr. Andreas Barckow as the IASB Chair, effective July 2021.
HKMA issued a letter to consult the banking industry on a full set of proposed draft amendments to the Banking (Capital) Rules for implementing the Basel standard on capital requirements for banks’ equity investments in funds in Hong Kong.
ESRB published an opinion assessing the decision of Swedish Financial Supervisory Authority (FSA) to extend the application period of a stricter measure for residential mortgage lending, in accordance with Article 458 of the Capital Requirements Regulation (CRR).