The banking industry is facing a number of significant changes in the coming year, with several important regulatory themes emerging. The Office of the Comptroller of the Currency, Federal Deposit Insurance Corporation and Federal Reserve are all zeroing in on 2023, with some existing rules seeing modernization, while others will likely be replaced by new regulatory guidance altogether.
The main themes include capital, climate, CRA, M&A, digital assets and fintech partnerships. Capital requirements for banks in the United States will see particular scrutiny from the Federal Reserve, with stress tests being used to evaluate the nation’s economy. Climate-related financial risks are also set to take center stage, with the Fed launching a pilot program to better understand the risk posed by climate change. Meanwhile, M&A activity has suffered due to the macroeconomic environment. Additionally, the OCC and FDIC are both focusing on greater scrutiny of fintech partnerships, with an emphasis on consumer protection.
Overall, these themes present numerous challenges to the banking sector, and it is essential that institutions monitor them closely in order to prepare for the upcoming changes.
