Treasury report: Fintech requires more oversight to prevent abuses, protect consumers
According to the report, while fintech firms enable new capabilities, they also create new risks related to data privacy and regulatory arbitrage.
Browsing: Nonbanks
FSB makes recommendations for addressing systemic risk in NBFI sector
The Financial Stability Board issued a set of policy proposals aimed at addressing systemic risk in the non-bank financial intermediation sector, which the group said are intended to “reduce liquidity demand spikes; enhance the resilience of supply in stress; and enhance risk monitoring and the preparedness of authorities and market participants.”
Basel Committee newsletter addresses credit risk in real estate, leveraged lending
The Basel Committee on Banking Supervision today issued a newsletter focusing on credit risk, which has risen in recent months due to inflation and the COVID-19 pandemic.
Ahead of G20 meeting, FSB chair warns of economic slowdown
The Financial Stability Board today published a letter from Chairman Klaas Knot warning of global financial system vulnerabilities and providing an update on the group’s work in key areas.
ABA pans postal service check-cashing pilot program
A pilot program by the U.S. Postal Service to offer check cashing services is inconsistent with congressional intent and inappropriately stretches the definition of “postal services,” ABA said in a letter to the Postal Regulatory Commission today.
ABA, CBA express support for CFPB’s nonbank supervision, opposition to disclosure of CSI
The American Bankers Association and the Consumer Bankers Association this week expressed support for the Consumer Financial Protection Bureau’s recent announcement that it will increase nonbank supervision.
CFPB to examine nonbanks for consumer risks
The Consumer Financial Protection Bureau today said it would invoke a “largely unused” authority under the Dodd-Frank Act to directly examine nonbank financial services providers. “Given the rapid growth of consumer offerings by nonbanks, the CFPB is now utilizing a dormant authority to hold nonbanks to the same standards that banks are held to,” said CFPB Director Rohit Chopra.
ABA, groups: more clarity needed on Fed payments system access proposal
As the Federal Reserve continues to consider which entities may become eligible for access to its payments systems, ABA and a coalition of trade groups called for the Fed to clarify how it will address problems of institutions with novel charters—such as state-chartered non-depository banks and crypto firms—seeking access.
Regulatory arbitrage in the payments system is risky business
Innovation that puts the payment system at greater risk isn’t “disruption.” It’s an unforced error that the Fed can and should easily avoid.
Lawmakers: USPS financial services pilot program still unlawful
Republican lawmakers ask the U.S. Postal Service to stop the extension of a financial services pilot program that they claim has violated statutory restrictions since its inception.