News and analysis for the well-informed compliance or audit exec.
Annual Membership best value
Subscribe now for $365
Our lowest price ($1 per day) for one year.
- Chief Compliance Officer and VP of Legal Affairs, Arrow Electronics
By Aaron Nicodemus2024-03-26T19:20:00
The acting head of the Treasury Department’s Office of the Comptroller of the Currency (OCC) argued banks should adopt a “strong sense of fairness” to bolster the effectiveness of their compliance programs, particularly regarding lending decisions guided by artificial intelligence (AI) and machine learning (ML) tools.
“Banks’ deployment of more and better resources can improve the effectiveness of their compliance risk management programs, as can their adoption of modern technologies. In many cases both are necessary. But they may not be sufficient,” said Michael Hsu in a speech delivered Monday at an industry event. “In environments of change, executing well-designed and resourced compliance programs is just half the challenge. The other half is adapting and anticipating where compliance risks are likely to emerge. To do that, having a strong sense of fairness can be important.”
Hsu said several of his predecessors have stressed mere compliance with laws and regulations is not sufficient. With the growing complexity of bank products, the digitization of banking, and the increasing awareness of inequalities in the banking system, Hsu said instilling a sense of fairness in a bank’s compliance risk management is a challenge but also an opportunity.
THIS IS MEMBERS-ONLY CONTENT. To continue reading, choose one of the options below.
News and analysis for the well-informed compliance or audit exec.
Annual Membership best value
Subscribe now for $365
Our lowest price ($1 per day) for one year.
2024-05-29T20:01:00Z By Aaron Nicodemus
Acting Comptroller of the Currency Michael Hsu said he favors requiring more mid-sized U.S. banks to conduct the same rigorous recovery planning as the largest banks, part of a lesson learned from the collapse of three mid-sized banks in 2023.
2024-05-13T19:26:00Z By Aaron Nicodemus
A new report by the Financial Stability Oversight Council recommended state regulators and Congress take steps to minimize “significant liquidity risk” posed by the nonbank mortgage servicing industry.
2024-04-19T17:49:00Z By Aaron Nicodemus
The Office of the Comptroller of the Currency cited three banks for unsafe and unsound business practices that mirror issues similar to what spurred last year’s banking crisis.
2024-06-28T19:30:00Z By Jeff Dale
A Bank of England report warned of private equity risk management deficiencies as interest rates remain stagnant, with international coordination important.
2024-06-20T15:40:00Z By Aaron Nicodemus
Compliance departments at financial institutions must become more involved in ensuring their firm’s operational resiliency to address emerging risks, the Treasury Department’s Office of the Comptroller of the Currency said in its semi-annual risk perspective.
2024-06-07T22:34:00Z By Adrianne Appel
Compliance has been “sleeping on” artificial intelligence, two panelists discussed at Compliance Week’s Women in Compliance Summit. The profession should be positioned to lead on AI governance at the business level.
Site powered by Webvision Cloud