At a Federalist Society Conference, FDIC Chair Jelena McWilliams described agency policy on alternative data, artificial intelligence, rapid prototyping and FinTech partnerships, and said the FDIC will issue a request for information about bank activities and digital assets. She called attention to China's digital yuan because of its potential to bypass U.S. or dollar-related systems and the U.S. sanctions regime.

In her address, Chair McWilliams also emphasized that the FDIC learned from the 2008 financial crisis, and used its regulatory flexibility in response to the COVID-19 pandemic to, among other things, "preemptively":

  • allow "prudent" modifications to existing loans for customers of FDIC-supervised banks;
  • reduce burdens when scheduling examinations;
  • extend relief to the accounting treatment of short-term loan modifications; and
  • clarify that actions taken in good faith reliance on agency statements would not be subject to criticism or supervisory action.

Ms. McWilliams added that only three banks were lost during COVID-19 and none due to the pandemic or subsequent economic stress.

Primary Sources

  1. FDIC Speech, Jelena McWilliams: Remarks at the Federalist Society Conference - "The Dodd-Frank Act Post Covid-19 and the Future of Financial Regulation"

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