Regulatory Developments
The Federal Reserve has taken several policy actions since the publication of the last Supervision and Regulation Report in November 2021. These actions continue to promote the safety and soundness, transparency, and efficiency of the banking system. Significant actions are detailed in table 1 below, and all Supervision and Regulation (SR) and Community Affairs (CA) letters are available on the Board's public website.4
Table 1. Key Federal Reserve or interagency rulemakings/statements (proposed and final)
| From 9/10/2021 to 4/30/2022 | |
|---|---|
| Date issued | Rule/guidance |
| 11/18/2021 | Agencies approve final rule requiring computer-security incident notification. Interagency press release: https://www.federalreserve.gov/newsevents/pressreleases/bcreg20211118a.htm |
| 11/23/2021 | Agencies issue joint statement on crypto-asset policy initiative and next steps. Interagency press release: https://www.federalreserve.gov/newsevents/pressreleases/bcreg20211123a.htm |
| 12/1/2021 | Agencies announce threshold for smaller loan exemption from appraisal requirements for higher-priced mortgage loans. Interagency press release: https://www.federalreserve.gov/newsevents/pressreleases/bcreg20211201a.htm |
| 12/1/2021 | Agencies announce dollar thresholds in Regulations Z and M for exempt consumer credit and lease transactions. Interagency press release: https://www.federalreserve.gov/newsevents/pressreleases/bcreg20211201b.htm |
| 12/10/2021 | Federal Reserve Board reiterates its supervisory expectations for large banks' risk management with investment funds. Federal Reserve Board press release: https://www.federalreserve.gov/newsevents/pressreleases/bcreg20211210a.htm |
| 12/15/2021 | Federal and state financial regulatory agencies issue interagency statement on supervisory practices regarding financial institutions affected by tornadoes. Interagency press release: https://www.federalreserve.gov/newsevents/pressreleases/bcreg20211215a.htm |
| 12/16/2021 | Agencies release annual asset-size thresholds under Community Reinvestment Act regulations. Interagency press release: https://www.federalreserve.gov/newsevents/pressreleases/bcreg20211216a.htm |
| 1/10/2022 | Federal Reserve Board finalizes technical rule that will streamline reporting requirements for member banks related to their subscriptions to Federal Reserve Bank capital stock. Federal Reserve Board press release: https://www.federalreserve.gov/newsevents/pressreleases/bcreg20220110a.htm |
| 1/28/2022 | Federal Reserve Board invites public comment on proposed guidance to implement a framework for the supervision of certain insurance organizations overseen by the Board. Federal Reserve Board press release: https://www.federalreserve.gov/newsevents/pressreleases/bcreg20220128a.htm |
| 3/1/2022 | Federal Reserve Board invites public comment on supplement to its May 2021 proposal. Federal Reserve Board press release: https://www.federalreserve.gov/newsevents/pressreleases/bcreg20220301a.htm |
| 3/22/2022 | Federal Reserve Board invites comment on interagency proposal to update policies and procedures governing administrative proceedings for supervised financial institutions. Federal Reserve Board press release: https://www.federalreserve.gov/newsevents/pressreleases/bcreg20220322a.htm |
Over the past four years, the Federal Reserve continued to engage with other financial regulators and the public on the risks and benefits created by the increasing use of technology by financial institutions. The agencies have issued guidance to the financial industry on a wide range of topics to address these risks. These topics included operational resilience, third-party relationship risk management, system authentication and access management, and community bank due diligence on prospective relationships with fintech companies.5 The Federal Reserve also published a paper describing the landscape of partnerships between community banks and fintech companies.6
The agencies issued joint statements to encourage innovative approaches for banking organizations to comply with Bank Secrecy Act (BSA) and anti-money-laundering requirements and to inform the public about their preliminary analysis on crypto-asset issues and planned work on crypto-related policy initiatives.7 The agencies have also solicited the public for information on how financial institutions use artificial intelligence (AI) in their activities.8
These publications and recent public outreach as highlighted in box 2 support the financial industry's continued innovation in using technology to provide efficient financial services in a safe-and-sound manner.
Box 2. The Fed Hosts a Data and Connectivity Symposium
In March 2022, the Federal Reserve Board conducted a Data and Connectivity Symposium to explore the transformation of financial services due to digitization and new data-driven business models. The Board convened academics, technical experts, and industry practitioners to discuss the
- greater connectedness across the banking industry through novel partnerships between banks and technology companies,
- increase in banks' use of third parties to provide a broad range of services and enhance internal operations, and
- evolution of banking and implications for the safety and soundness of banks and consumer protection.
A video of the symposium is available to the public at https://www.youtube.com/watch?v=EFxHZ41LjBI.
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References
4. The Federal Reserve publishes SR and CA letters to address significant policy and procedural matters related to the Federal Reserve System's supervisory responsibilities and its consumer compliance supervisory responsibilities, respectively. SR letters are available on the Board's public website at https://www.federalreserve.gov/supervisionreg/srletters/srletters.htm, and CA letters are available are available on the Board's public website at https://www.federalreserve.gov/supervisionreg/caletters/caletters.htm. Return to text
5. See interagency press release on an operational resilience paper at https://www.federalreserve.gov/newsevents/pressreleases/bcreg20201030a.htm, interagency press release requesting comment on proposed risk-management guidance for third-party relationships at https://www.federalreserve.gov/newsevents/pressreleases/bcreg20210713a.htm, SR Letter 21-14; "Authentication and Access to Financial Institution Services and Systems," at https://www.federalreserve.gov/supervisionreg/srletters/sr2114.htm, and interagency press release on a guide to help community banks evaluate fintech relationships at https://www.federalreserve.gov/newsevents/pressreleases/bcreg20210827a.htm. Return to text
6. See Federal Reserve press release announcing a paper describing the landscape of partnerships between community banks and fintech companies at https://www.federalreserve.gov/newsevents/pressreleases/bcreg20210909a.htm. Return to text
7. See Federal Reserve Board press release announcing the issuance of a joint statement encouraging depository institutions to explore innovative approaches to meet BSA/anti-money-laundering compliance obligations and to further strengthen the financial system against illicit financial activity at https://www.federalreserve.gov/newsevents/pressreleases/bcreg20181203a.htm, and interagency press release on the issuance of a joint statement on crypto-asset policy initiative and next steps at https://www.federalreserve.gov/newsevents/pressreleases/bcreg20211123a.htm. Return to text
8. See interagency press release seeking views on financial institutions' use of AI at https://www.federalreserve.gov/newsevents/pressreleases/bcreg20210329a.htm. Return to text