FDIC Announces Priorities for 2022

FDIC Acting Chairman, Martin J. Gruenberg, recently announced the priorities for the FDIC in the coming year, which include strengthening the Community Reinvestment Act (CRA), addressing financial risks posed by climate change, reviewing the bank merger process, evaluating crypto-asset risks, and finalizing Basel III Capital Rule.

The first priority and top priority of the FDIC is to strengthen the Community Reinvestment Act (CRA).  The federal banking agencies have been working together on a major revision of the rule implementing CRA and plan to put out a notice of proposed rulemaking in the near future.

The second priority is to address financial risks posed by climate change, which will include seeking public comment on guidance designed to help banks manage these risks, establishing an FDIC interdivisional working group for this topic, and joining the international Network of Central Banks and Supervisors for Greening the Financial System.

The third priority is to review the Bank Merger Act, which establishes the standards used by the federal banking agencies to consider bank merger applications.  This has not been reviewed in 25 years and considering the significant implications of bank mergers for a number of reasons, the FDIC considers that a careful review of the Bank Merger Act is necessary.

The fourth priority is to evaluate crypto-asset risks, which has rapidly made its way into the financial system.  The agencies plan to provide guidance to the banking industry on the management of prudential and consumer protection risks raised by such activities. 

The fifth and final rule is to finalize the Basel III Capital Rule.  The Basel Committee on Banking Supervision reached a final agreement on modifications to the Basel III international regulatory framework, which would strengthen the regulatory framework for large banking organizations.