- Chief Compliance Officer and VP of Legal Affairs, Arrow Electronics
By 
Aaron Nicodemus2023-06-12T13:00:00
Federal banking regulators have indicated they will be more assertive in their supervision of mid-sized banks in the aftermath of the collapses of Silicon Valley Bank (SVB), Signature Bank, and First Republic Bank earlier this year.
How will that increased supervision play out in practice? And could other types of financial institutions—like financial technology firms (fintechs)—get caught in the regulatory net?
In the Federal Reserve Board’s analysis of its findings related to the failure of SVB, the agency indicated it will likely bring back heightened supervisory requirements for banks with $100 billion or more in assets.
“It will be a tougher regulatory environment. Scrutiny will be higher,” said Mike Brauneis, a managing director and global financial services industry leader for consulting firm Protiviti. “Risks will be reviewed in more detail. Issues will be escalated more quickly than they would have just a few years ago. There will be less tolerance for missing deadlines.”
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Nearly half the respondents to a Compliance Week and Riskonnect survey regarding the recent U.S. banking crisis said they changed or considered changing their third-party risk management procedures as a result of the turmoil.
Federal Reserve Chair Jerome Powell shared in a speech three observations he had regarding the failures of Silicon Valley Bank, Signature Bank, and First Republic Bank earlier this year.
Michelle Bowman of the Federal Reserve Board of Governors warned in a speech the agency’s response to the banking crisis might end up hurting the mid-sized financial institutions it is supposed to help.
The U.S. Department of the Treasury’s Financial Crimes Enforcement Network issued an alert to financial institutions about their obligations to report deepfakes, warning artificial intelligence has given bad actors additional tools in their arsenal.
A nationwide rental outlet affiliated with Rent-a-Center and its chief executive have been sued by the Consumer Financial Protection Bureau for allegedly deceiving five million consumers about the terms of credit agreements.
A lack of risk visibility is causing companies to reject customers–and potentially lose money–over fears they might be in danger of violating rules around anti-money laundering and sanctions regulations.
