Regulators provide state of the industry report to Congress

Agency heads from the FDIC, OCC, and the NCUA provided a state of the industry update during testimony before the Senate Banking Committee yesterday.

The panel covered a broad range of topics including CRA reform, consolidation in the banking industry, overdraft fees, rate cap proposals, climate risk, and bank-fintech collaborations.

• On climate risk: Acting Comptroller of the Currency Michael Hsu said the agency’s newly created Climate Change Risk Officer will work with industry stakeholders to accelerate the adoption of climate risk management practices within banks. FDIC Chairman Jelena McWilliams said that its regulated banks take into account weather-related risks, and they are examined for how they plan for those risks.
• On bank-fintech partnerships: Hsu also said OCC staff are gathering and analyzing data on bank-fintech partnerships that will inform the development of future options to protect consumers and expand financial inclusion.