Financial stability remains a critical concern for federal
banking regulators, prompting them to reconsider certain standards put in place
to ensure that covered entities have the proper infrastructure to withstand
operational challenges.
Learn more about this and other matters facing federal
regulators in this roundup:
Banking regulators reconsider operational resilience
standards
Banking regulators revealed they are considering key changes
to enhance the U.S. operational resilience framework, Acting Comptroller of the
Currency Michael Hsu said, speaking at the Institute of International Bankers. These
changes would be intended to combat the increased risk of a major disruption in
critical banking services. Hsu said that as the multitude of available banking
services grows and technology and third-party service providers play a larger
role, “the threat surface for disruptions is expanding.” Read his full comments
here.
Bill would codify Treasury program supporting minority
banks
Legislation proposing to codify a Treasury Department
program supporting minority depository institutions (MDIs) and other community
banks has gained support from community bankers. Independent Community Bankers
of America President and CEO Rebeca Romero Rainey said H.R. 7483, the
“Expanding Opportunity for MDIs Act,” would bolster the relationship-lending
model community banks enjoy with the areas they serve. The bill, introduced by
Rep. Joyce Beatty (D-Ohio), would codify the Treasury’s Mentor-Protégé Program,
which enables MDIs and other community banks to partner with larger financial
institutions to receive resources, training and technical assistance to become
financial agents to Treasury. Read Beatty’s statement about the measure here.
Federal agencies waive requirements for Hawaii
institutions
To support wildfire recovery in Hawaii, federal financial
regulators temporarily waived specific appraisal rules for real estate
transactions in Maui County. The waiver will allow banks and credit unions to
proceed with transactions without obtaining formal appraisals. These
institutions must still ensure that a property’s value justifies the
transaction, maintaining prudent lending practices. The waiver will remain
effective until Aug. 10, 2026, with regulators overseeing lending activity in
the area to ensure safety and soundness. Read more here.
FDIC member criticizes digital asset proposal, FHLB loans
Federal Deposit Insurance Corp. (FDIC) Vice Chairman Travis
Hill criticized the FDIC’s regulatory approach to digital assets, asserting
that it has painted a “closed for business” public perception about the
agency’s stance regarding blockchain or distributed ledger technology. Hill
described the agency’s approach to such innovations as “secretive” and it
called it out for allegedly being unresponsive to banks seeking guidance on acceptable
activities related to digital assets. He also criticized Federal Home Loan
Banks (FHLBs), asserting they are poorly positioned to serve as a lender-of-last-resort and that policymakers should “think holistically” about the
ramifications of cutting off banks from the FHLBs when they face stress. His
full remarks can be found here.