On 2/7/2022, FDIC Acting Chairman Martin J. Gruenberg released a statement to announce the agency’s mission and precedence this 2022. The press release also included the summary of the FDIC’s key priorities.
From the FDIC Acting Chairman’s statement:
“The FDIC’s core mission is to maintain stability and public confidence in the U.S. financial system. The FDIC carries out this mission through its responsibilities for deposit insurance, banking supervision, and the orderly resolution of failed banks, including systemically important financial institutions. Banking supervision encompasses safety and soundness and consumer protection, both of which are essential to this important mission. While there are many pressing issues the FDIC will have to address this year, key priorities are: the Community Reinvestment Act; climate change; the Bank Merger Act; crypto-assets; and the Basel III capital rule. All of these priorities will require close collaboration among the federal banking agencies.”
The agency’s key priorities this 2022 include the following:
Strengthen Community Reinvestment Act (CRA): The federal banking agencies have been working on a major revision of the rule implementing CRA. The agencies plan to act jointly on a notice of proposed rulemaking in the near future that would strengthen and enhance CRA.
Address Financial Risks Posed by Climate Change: This will include seeking public comment on guidance designed to help banks prudently manage financial risks posed by climate change establishing an FDIC interdivisional, interdisciplinary working group on climate-related financial risks, and joining the international Network of Central Banks and Supervisors for Greening the Financial System.
Review Bank Merger Process: The Bank Merger Act establishes the standards used by the federal banking agencies to consider bank merger applications which the agencies has not comprehensively reviewed in 25 years. In light of the significant implications of bank mergers for competition, safety and soundness, financial stability, and meeting the financial services needs of communities, a careful interagency review of the bank merger process is warranted.
Evaluate Crypto-Asset Risks: The rapid introduction of a variety of crypto-asset or digital asset products into the financial system could pose significant safety and soundness and financial system risks. Thus, the agencies will need to provide robust guidance to the banking industry on the management of prudential and consumer protection risks raised by crypto-asset activities.
Finalize Basel III Capital Rule: The Basel Committee on Banking Supervision reached a final agreement on modifications to the Basel III international regulatory framework. Implementation of this final agreement will be a priority which would strengthen the regulatory framework for large banking organizations, including strengthening the capital requirements related to market risk, operational risk, and the risks associated with financial derivatives.
Read the FDIC’s full press release here.