The locations of supervisory focus for banking regulators in 2024 will look a lot like their focus given that the bank failures previously this year, with property liability management, credit danger, cybersecurity, and functional danger top of mind, agents from the Federal Reserve, OCC and Treasury Department stated today throughout a panel conversation at The Clearing House yearly conference in New York City.
Patricia Grady, primary deputy counsel at the OCC, indicated the firm’s 2024 bank guidance running strategy for more insight into her firm’s locations of focus. She likewise kept in mind that Acting Comptroller of the Currency Michael Hsu has actually described 4 essential top priorities that will direct OCC guidance: defending against complacency by banks, decreasing injustice in banking, adjusting to digitalization and handling climate-related monetary danger. For example, in regards to defending against complacency, “we expect banks should be prepared to address a wide range of risks,” she stated.
Michael Gibson, director of the Fed’s Division of Banking Supervision and Regulation, likewise indicated his firm’s just recently released guidance report. Among other things, the report states the Fed is looking for to enhance its guidance of rates of interest threats by performing targeted evaluations at banks displaying greater rates of interest and liquidity danger profiles. Another location of focus for regulators is digital properties and tokenization, with the OCC holding a conference on the latter early next year.
At the exact same time, the function of cryptocurrency in supposedly funding terrorist operations is coming under increased analysis, with Neil McBride, basic counsel at the Treasury Department, keeping in mind that the Financial Crimes Enforcement Network just recently released proposed rulemaking to determine worldwide convertible virtual currency blending as a “class of transactions” of main cash laundering issue.