FDIC published a letter for supervised financial institutions to provide information and clarification on the Rapid Phased Prototyping, or RPP, initiative of FDIC. The Rapid Phased Prototyping initiative is a competition designed to accelerate the adoption of modern technological solutions to help financial institutions, particularly community banks, provide more timely and granular data to FDIC in a more effective and efficient manner. The lessons learned from this competition, and future FDIC tech sprints, will promote the safe and sound adoption of technology. The FDIC letter clarifies that solutions or reporting systems produced by this initiative are voluntary and banks will not be required to adopt them.
In its letter, FDIC also highlights the following:
- Rapid Phased Prototyping competitors were selected through an FDIC-approved and -controlled competitive procurement process. The agreements are between the FDIC and the Rapid Phased Prototyping competitors and do not extend to any financial institution.
- Some FDIC-supervised financial institutions have inquired about the FDIC expectations for them to partner with Rapid Phased Prototyping contestants. Rapid Phased Prototyping competitors will independently determine whether they will seek to collaborate with FDIC-supervised financial institutions to receive feedback and input on proposed prototype designs. Financial institutions are not obligated to collaborate with any Rapid Phased Prototyping competitors.
- If financial institutions collaborate with any Rapid Phased Prototyping competitor, they will be responsible for complying with the appropriate consumer protection laws, privacy laws, and other legal requirements.
- Any information collected by competitors in connection with the current Rapid Phased Prototyping is not collected on behalf of, or for, the FDIC.
- During the course of any demonstrations or negotiations of prototype capabilities, FDIC will work with the Rapid Phased Prototyping competitors to ensure compliance with applicable consumer protection laws, privacy laws, and other legal requirements.
Keywords: Americas, US, Banking, Regtech, Suptech, Rapid Phased Prototyping, RPP Initiative FDITech, Reporting, Community Banks, FDIC
Previous ArticleFCA Publishes Response to Call for Input on Open Finance
In a letter addressed to the industry, the Australian Prudential Regulation Authority (APRA) set out an updated schedule of policy priorities for the banking, insurance, and superannuation industries.
The European Commission (EC) adopted a comprehensive review package of Solvency II rules in the European Union.
The Office of the Comptroller of the Currency (OCC) issued Versions 1.0 of the "Earnings" and "Regulatory Reporting" booklets of the Comptroller's Handbook.
The European Central Bank (ECB) published results of its economy-wide climate stress test, which aimed to assess the resilience of non-financial corporates and euro area banks to climate risks.
The European Banking Authority (EBA) published a report on the use of digital platforms in the banking and payments sector in European Union.
The Hong Kong Monetary Authority (HKMA) published updates on the policy measures that were announced in context of the ongoing pandemic.
The International Swaps and Derivatives Association (ISDA), along with several other associations, submitted a joint response to the Basel Committee on Banking Supervision (BCBS) consultation on preliminary proposals for the prudential treatment of cryptoasset exposures.
BIS published the September issue of the Quarterly Review, which contains special features that analyze the rapid rise in equity funding for financial technology firms, the effectiveness of policy measures in response to pandemic, and the evolution of international banking.
The Basel Committee for Banking Supervision (BCBS) met in September 2021 and reviewed climate-related financial risks, discussed impact of digitalization, and welcomed efforts by the International Financial Reporting Standards (IFRS) Foundation to develop a common set of sustainability reporting standards
The Office of the Comptroller of the Currency (OCC) issued a Cease and Desist Order against MUFG Union Bank for deficiencies in technology and operational risk governance.