Federal banking regulators issued long-awaited joint guidance for financial institutions when managing risks associated with third-party relationships, including relationships with technology providers.
The establishment of a public/private standards-setting organization to help banks adopt third-party financial technology solutions is an idea that deserves further consideration, FDIC Vice Chairman Travis Hill said.
FDIC-insured banks and savings institutions earned $79.8 billion in the first quarter of 2023, according to the agency’s most recent Quarterly Banking Profile.
The FDIC announced the appointment of seven new members to its Advisory Committee on Community Banking
Economic conditions alone can’t account for the drop in unbanked individuals and families in the U.S. over the past decade, with efforts such as Bank On possibly responsible for a significant portion of that decline, FDIC Chairman Martin Gruenberg said.
FDIC bank examinations are not always effective in identifying risks to customers and banks that participate in government-guaranteed loan programs, the Office of Inspector General determined in a report.
The FDIC board voted 3-2 to propose a special assessment to make up for losses to the Deposit Insurance Fund caused by regulators’ decision to declare a systemic risk exception in the failures of Silicon Valley Bank and Signature Bank.
A “targeted” deposit insurance system in which additional coverage would be extended to business payment accounts would be the best option for balancing financial stability and depositor protection relative to its costs, the FDIC said in its long-awaited review of the system.
First Republic Bank in San Francisco was closed May 1 by the California Department of Financial Protection and Innovation, which appointed the FDIC as receiver.
Federal Reserve supervisors did not fully appreciate the extent of the vulnerabilities as Silicon Valley Bank grew in size and complexity, and the bank experienced “a textbook case of mismanagement,” Federal Reserve Vice Chairman for Supervision Michael Barr said in his long-awaited report on the institution’s failure.