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
The European Banking Authority (EBA) launched the 2023 European Union (EU)-wide stress test, published annual reports on minimum requirement for own funds and eligible liabilities (MREL) and high earners with data as of December 2021.
The European Banking Authority (EBA) proposed implementing technical standards on the interest rate risk in the banking book (IRRBB) reporting requirements, with the comment period ending on May 02, 2023.
The U.S. Federal Reserve Board (FED) set out details of the pilot climate scenario analysis exercise to be conducted among the six largest U.S. bank holding companies.
The Board of Governors of the Federal Reserve System (FED) adopted the final rule on Adjustable Interest Rate (LIBOR) Act.
The European Central Bank (ECB) published an updated list of supervised entities, a report on the supervision of less significant institutions (LSIs), a statement on macro-prudential policy.
The Hong Kong Monetary Authority (HKMA) published a circular on the prudential treatment of crypto-asset exposures, an update on the status of transition to new interest rate benchmarks.
The European Commission (EC) adopted the standards addressing supervisory reporting of risk concentrations and intra-group transactions, benchmarking of internal approaches, and authorization of credit institutions.
The China Banking and Insurance Regulatory Commission (CBIRC) issued rules to manage the risk of off-balance sheet business of commercial banks and rules on corporate governance of financial institutions.
The Hong Kong Monetary Authority (HKMA) made announcements to address sustainability issues in the financial sector.
The European Banking Authority (EBA) published regulatory standards on identification of a group of connected clients (GCC) as well as updated the lists of identified financial conglomerates.