11 May FDIC – Remarks by Chairman Jelena McWilliams at the Federalist Society Conference: “The Dodd-Frank Act Post Covid-19 and the Future of Financial Regulation”
May 11, 2021
Lessons in Regulatory Flexibility
Discussed FDIC actions to maintain stability, confidence in the financial system during the Covid episode. Regulators acted preemptively to give flexibility while maintaining safety and soundness. Worked closely with other federal agencies for targeted regulatory changes to facilitate lending and other financial intermediation, to help increase bank flexibility, and capacity. Encouraging institutions to use capital and liquidity buffers to support customers and the economy. Gave institutions the option to delay the effect on regulatory capital due to the application of CECL methodology. Took other actions to allow institutions to extend funds expeditiously to households. Actions increased flexibility for institutions to comply with laws and to meet customer needs.
Bank Partnerships with FinTechs
The FDIC has worked on several initiatives to facilitate partnerships between FinTechs and banks to allow banks to reach new customers and offer new products. Updated brokered deposit regulation, which was the first substantial update in 30 years. Asked input on a voluntary certification program for innovative technology. The highlighted challenge for regulators to create an environment in which FinTechs and banks can collaborate, and banks are given the opportunity to pursue innovative customer solutions.
For more information, visit www.fdic.gov.