Featured Product

    FDIC Chair on Policy Actions to Better Address Need of Community Banks

    June 04, 2019

    At the Community Development Bankers Association Peer Forum and Membership Meeting, the FDIC Chair Jelena McWilliams outlined the decisions taken as a result of the feedback by bankers that will help focus FDIC efforts to better address their needs. She has been meeting with local bankers, state supervisors, and consumer groups to obtain feedback on many important topics, including the needs of their local communities, the regulatory approach of FDIC, and ideas to promote economic inclusion.

    As a result of her meetings, the FDIC Chair has directed staff to increase efforts to:

    • Actively seek ways to reduce regulatory burden on community banks
    • Encourage community banking, including the establishment of de novo banks in communities of all sizes
    • Promote and preserve the Minority Depository Institutions of the nation
    • Modernize the Community Reinvestment Act (CRA) framework and provide clarity to institutions on their CRA obligations
    • Ensure that the regulatory framework encourages banks to offer products and services to low- and moderate-income households

    She added that technology is another area that can help FDIC and financial institutions meet consumers where they are. Although fintech firms have developed new approaches to reach consumers, improve the customer experience, lower transaction costs, and increase credit availability, she wants to see more banks leveraging technology to do the same. Last fall, it was announced that FDIC is establishing a new internal office to promote innovation in the industry. FDIC has already begun partnering with banks to understand how they are innovating and promoting technological development at community banks, which may have limited funding for research and development. FDIC is also looking at what policy changes are needed to encourage innovation, while maintaining safe and secure financial services and institutions. This is especially important because technology offers a tremendous opportunity to expand access to the banking system, said Ms. McWilliams.

    As of March 31, United States has 4,930 insured community banks and FDIC is the primary federal supervisor for many of these institutions. She highlighted that the latest FDIC survey shows that more than 8 million households do not have any relationship with the banking system while another 24.2 million households are underbanked. Millions of Americans are missing out on the important benefits banks provide, including wealth-building opportunities and the protection provided by deposit insurance. Innovation and technology have the potential to provide important inroads to reach these consumers. According to the FDIC Chair, "Supporting this segment of the banking system is paramount. Community banks in the U.S. are intertwined in a symbiotic relationship with their communities: if those communities do not do well, neither will their community banks."

     

    Related Links

    Keywords: Americas, US, Banking, Community Banks, Fintech, Proportionality, Regulatory Approach, FDIC

    Related Articles
    News

    EU Amends IFRS 9 Rule, Changes Concern Interest Rate Benchmark Reforms

    EU published Regulation 2020/34 regarding the International Accounting Standard (IAS) 39 and International Financial Reporting Standards (IFRS) 7 and 9.

    January 16, 2020 WebPage Regulatory News
    News

    FDIC and OCC Issue Statement on Heightened Cyber Security Risk

    In response to the heightened cyber-security risk facing the financial services industry and other critical business sectors, FDIC and OCC issued an interagency statement on heightened cyber-security risk.

    January 16, 2020 WebPage Regulatory News
    News

    BoE and FCA Outline Next Steps for LIBOR Transition in 2020

    BoE, FCA, and the Working Group on Sterling Risk-Free Reference Rates (RFRWG) have published a set of documents that outline the LIBOR transition priorities and milestones for 2020.

    January 16, 2020 WebPage Regulatory News
    News

    BCRA Updates Regulation on Capital Requirements and Information Regime

    BCRA updated the rules on minimum capital requirements for financial entities and on certain aspects of the information transparency regime for quarterly and annual supervision.

    January 16, 2020 WebPage Regulatory News
    News

    BIS to Expand Central Bank Membership

    BIS is to expand its central bank membership base and to increase collaboration in its work as a forum for international cooperation and as a hub for central banks and other financial authorities.

    January 14, 2020 WebPage Regulatory News
    News

    EIOPA Issues Technical Specifications for Market and Credit Risk Study

    EIOPA published the technical specifications, including instructions, for the market and credit risk modeling comparative study for year-end 2019.

    January 13, 2020 WebPage Regulatory News
    News

    FED Publishes FAQs on Tailoring Rules for Banks

    FED released a letter announcing the publication of an initial set of frequently asked questions (FAQs) in response to questions from institutions.

    January 13, 2020 WebPage Regulatory News
    News

    IA of Hong Kong Publishes Stress Testing Scenarios in Relation to ORSA

    IA of Hong Kong published the prescribed scenarios for stress and scenario testing to be used by the authorized insurers conducting general insurance business.

    January 13, 2020 WebPage Regulatory News
    News

    FDIC Letter on Submission of Call Reports by End of January 2020

    FDIC, in a letter to financial institutions, announced that the Consolidated Reports of Condition and Income (Call Reports) for the December 31, 2019 report date must be submitted to the Central Data Repository of the relevant US agencies by January 30, 2020.

    January 13, 2020 WebPage Regulatory News
    News

    EBA Consults on Calculation of Own Funds Requirements for Market Risk

    EBA is consulting on the draft regulatory technical standards for calculation of the own funds requirements for market risk, under the standardized and internal model approaches of the Fundamental Review of the Trading Book (FRTB) framework.

    January 13, 2020 WebPage Regulatory News
    RESULTS 1 - 10 OF 4489