#2021-17, May 21, 2021

House Financial Services Committee Holds Regulatory Oversight Hearing

The House Financial Services Committee this week held a hearing with representatives from all the federal prudential regulators to discuss safety and soundness, diversity and accountability issues.  Jelena McWilliams, Chairman of the Federal Deposit Insurance Corporation; Randal Quarles, Vice Chairman for Supervision at the Federal Reserve, Michael Hsu, Acting Comptroller of the Currency, and Todd Harper, Chairman of the National Credit Union Administration appeared before the Committee during the hearing. 

During Chairman Harper’s testimony, he urged Congress to give the NCUA examination and enforcement authority over third-party vendors, including credit union service organizations (CUSOs). Legislation to restore this authority to the NCUA is currently before the Committee after it lapsed in 2002.  MBA has long advocated for additional oversight of CUSO activities, and we are pleased that the NCUA Chair is asking for this authority.

In addition, Acting Comptroller Hsu discussed the Office of the Comptroller of the Currency’s (OCC) recent initiatives to charter fintech firms, noting that the agency must determine how to charter these entities in a “safe and sound way, where we can adapt to the innovation.”  He also noted that, “We must find a way to consider how fintechs and payment platforms fit into the banking system, and we must do it in coordination with the FDIC, Federal Reserve, and the states.”

To read testimony from the hearing and view an archived webcast, click here.

Rep. Auchincloss Named Vice-Chair of House Financial Services Committee

In related news, Committee Chairwoman Maxine Waters (D-CA) announced that Rep. Jake Auchincloss (D-MA) will serve as Vice-Chair of the Committee after being elected to the position by the Committee’s Democratic membership.  Rep. Auchincloss, one of three Massachusetts House members serving on the Committee is serving his first term in Congress after winning the seat formerly held by Rep. Joseph Kennedy III.  MBA congratulates Rep. Auchincloss on his appointment and we look forward to working with him during the 117^th Congress. 

To read more, click here.

OCC will Reconsider CRA Rule

The OCC this week indicated that it will formally “reconsider” the June 2020 final rule revising the  Community Reinvestment Act rules.  The agency also said that national banks and federal thrifts may pause their compliance efforts while the reconsideration is ongoing. 

Specifically, “the OCC will not object to the suspension of the development of systems for, or other implementation of, provisions with a compliance date of Jan. 1, 2023, or Jan. 1, 2024, under the 2020 CRA rule,” the agency said.   However, banks subject to the rule must continue to comply with provisions of the CRA modernization rule that were effective October 1, 2020 and that were explained and interpreted in a 2020 OCC bulletin.

The agency also stated that it will not finalize a December 2020 proposed rule on how it will evaluate CRA compliance under the new rule and that it will discontinue the CRA data collection requirements from late last year. 

To read more, click here.

FDIC Issues RFI Seeking Feedback on Digital Asset Activities

The FDIC recently issued a Request for Information (RFI) seeking feedback on current and potential digital asset activities at insured depository institutions.  The RFI notes that there are “novel and unique considerations” related to digital assets and with banks “increasingly exploring the emerging digital asset ecosystem,” the information received will help the agency understand industry and consumer interests.  The comment period will be open 60 days after the RFI is published in the Federal Register.

To read more, click here.