Featured Product

    FDIC Requests Information on Digital Asset Activities of Banks

    May 17, 2021

    FDIC is requesting information and soliciting comments on the current and potential digital asset activities of insured depository institutions. Since banks are increasingly exploring the emerging digital asset ecosystem, FDIC is issuing this request for information to help inform its understanding of the industry and consumer interests in this area. Among others, FDIC seeks to understand whether it should take into account any unique aspects of digital asset activities from the supervisory and regulatory perspectives and should it clarify or expand existing supervisory guidance to address digital asset activities. FDIC also notes that its Part 362 application procedures may apply to certain digital asset activities or investments and seeks to understand whether additional regulatory clarity is needed in relation to this. The comment period for this request ends on July 16, 2021.

    New technology and innovation surrounds the use of digital assets in financial markets and intermediation as well as with the settlement and payment systems. Banks are increasingly exploring several roles in the emerging digital asset ecosystem, with  the digital asset use cases and activities falling into one or more broad categories: technology solutions, asset-based activities, liability-based activities, custodial activities, and other activities. FDIC is requesting information and soliciting comments on questions regarding current and potential use cases, risk and compliance management, supervision and activities, and deposit insurance and resolution. Regarding the risk and compliance management, FDIC is requesting information on questions related to the following:

    • Extent to which existing risk and compliance management frameworks of insured depository institutions are designed to identify, measure, monitor, and control risks associated with the various digital asset use cases
    • Unique or particular risks that are challenging to measure, monitor, and control for the various digital asset use cases; unique controls or processes that could be implemented to address such risks
    • Integration of operations related to digital assets with legacy banking systems
    • Identification of any potential benefits and unique risks of particular digital asset product offerings or services to customers of insured depository institutions
    • Integration of new technologies into the existing cybersecurity functions of insured depository institutions

     

    Related Links

    Comment Due Date: July 16, 2021

    Keywords: Americas, US, Banking Digital Assets, Insured Depository Institutions, Technology Risk, Fintech, Cyber Risk, Regtech, Deposit Insurance, Stablecoins, FDIC

    Related Articles
    News

    EC Rule on Contractual Recognition of Write Down and Conversion Powers

    The European Commission (EC) published the Delegated Regulation 2021/1527 with regard to the regulatory technical standards for the contractual recognition of write down and conversion powers.

    September 17, 2021 WebPage Regulatory News
    News

    APRA Issues Further Guidance on Application of Securitization Standard

    The Australian Prudential Regulation Authority (APRA) published a new set of frequently asked questions (FAQs) to provide guidance to authorized deposit-taking institutions on the interpretation of APS 120, the prudential standard on securitization.

    September 16, 2021 WebPage Regulatory News
    News

    SRB Provides Update on Approach to Prior Permissions Regime

    The Single Resolution Board (SRB) published a Communication on the application of regulatory technical standard provisions on prior permission for reducing eligible liabilities instruments as of January 01, 2022.

    September 16, 2021 WebPage Regulatory News
    News

    APRA Publishes FAQs on Capital Treatment of Overseas Subsidiaries

    The Australian Prudential Regulation Authority (APRA) published a new set of frequently asked questions (FAQs) to clarify the regulatory capital treatment of investments in the overseas deposit-taking and insurance subsidiaries.

    September 15, 2021 WebPage Regulatory News
    News

    EBA Finalizes Guidance to Assess Breaches of Large Exposure Limits

    The European Banking Authority (EBA) published the final report on the guidelines specifying the criteria to assess the exceptional cases when institutions exceed the large exposure limits and the time and measures needed for institutions to return to compliance.

    September 15, 2021 WebPage Regulatory News
    News

    PRA Finalizes Changes to Consolidated Prudential Rules Under CRD5/CRR2

    The Prudential Regulation Authority (PRA) issued the policy statement PS20/21, which contains final rules for the application of existing consolidated prudential requirements to financial holding companies and mixed financial holding companies.

    September 15, 2021 WebPage Regulatory News
    News

    EBA Revises Guidelines on Stress Tests of Deposit Guarantee Schemes

    The European Banking Authority (EBA) revised the guidelines on stress tests to be conducted by the national deposit guarantee schemes under the Deposit Guarantee Schemes Directive (DGSD).

    September 15, 2021 WebPage Regulatory News
    News

    Nordea Bank and EIB Sign Agreement to Fund Green Projects in Nordics

    The European Commission (EC) announced that Nordea Bank has signed a guarantee agreement with the European Investment Bank (EIB) Group to support the sustainable transformation of businesses in the Nordics.

    September 15, 2021 WebPage Regulatory News
    News

    HKMA Endorses Industry Guidance to Support LIBOR Transition

    The Hong Kong Monetary Authority (HKMA) issued a circular, for all authorized institutions, to confirm its support of an information note that sets out various options available in the loan market for replacing USD LIBOR with the Secured Overnight Financing Rate (SOFR).

    September 14, 2021 WebPage Regulatory News
    News

    OCC Issues Booklet on Supervision of Problem Banks

    The Office of the Comptroller of the Currency (OCC) issued a new "Problem Bank Supervision" booklet of the Comptroller's Handbook. The booklet covers information on timely identification and rehabilitation of problem banks and their advanced supervision, enforcement, and resolution when conditions warrant.

    September 13, 2021 WebPage Regulatory News
    RESULTS 1 - 10 OF 7481