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

    ESAs Issue Multiple Regulatory Updates for Financial Sector Entities

    The three European Supervisory Authorities (ESAs) issued a letter to inform about delay in the Sustainable Finance Disclosure Regulation (SFDR) mandate, along with a Call for Evidence on greenwashing practices.

    November 15, 2022 WebPage Regulatory News

    ISSB Makes Announcements at COP27; IASB to Propose IFRS 9 Amendments

    The International Sustainability Standards Board (ISSB) of the IFRS Foundations made several announcements at COP27 and with respect to its work on the sustainability standards.

    November 10, 2022 WebPage Regulatory News

    IOSCO Prioritizes Green Disclosures, Greenwashing, and Carbon Markets

    The International Organization for Securities Commissions (IOSCO), at COP27, outlined the regulatory priorities for sustainability disclosures, mitigation of greenwashing, and promotion of integrity in carbon markets.

    November 09, 2022 WebPage Regulatory News

    EBA Finalizes Methodology for Stress Tests, Issues Other Updates

    The European Banking Authority (EBA) issued a statement in the context of COP27, clarified the operationalization of intermediate EU parent undertakings (IPUs) of third-country groups

    November 09, 2022 WebPage Regulatory News

    OSFI Sets Out Work Priorities and Reporting Updates for Banks

    The Office of the Superintendent of Financial Institutions (OSFI) published an annual report on its activities, a report on forward-looking work.

    November 07, 2022 WebPage Regulatory News

    APRA Finalizes Changes to Capital Framework, Issues Other Updates

    The Australian Prudential Regulation Authority (APRA) finalized amendments to the capital framework, announced a review of the prudential framework for groups.

    November 03, 2022 WebPage Regulatory News

    BIS Hub and Central Banks Conduct CBDC and DeFI Pilots

    The Bank for International Settlements (BIS) Innovation Hubs and several central banks are working together on various central bank digital currency (CBDC) pilots.

    November 03, 2022 WebPage Regulatory News

    FASB Proposes Improvements to 2023 GAAP Reporting Taxonomy

    The Financial Accounting Standards Board (FASB) is seeking comments, until November 03, 2022, on the proposed technical and other conforming improvements for the 2023 GAAP Financial Reporting Taxonomy.

    November 03, 2022 WebPage Regulatory News

    ECB Sets Deadline for Banks to Meet Its Climate Risk Expectations

    The European Central Bank (ECB) published the results of its thematic review, which shows that banks are still far from adequately managing climate and environmental risks.

    November 02, 2022 WebPage Regulatory News

    ESAs, ECB, & EC Issue Multiple Regulatory Updates for Financial Sector

    Among its recent publications, the European Banking Authority (EBA) published the final standards and guidelines on interest rate risk arising from non-trading book activities (IRRBB)

    October 31, 2022 WebPage Regulatory News
    RESULTS 1 - 10 OF 8588